KCRag Forum

For the lazy:

Updated renderings look fantastic. Love the staggered balcony placement and two story common area (?) on top.

Would be nice to see additional retail thrive here along with the opening of the new hotel nearby and mini-hub containing LuLu's/Jacobson/Italian market etc.

don't forget there will be a new lively boutique hotel and bar/restaurant next door...

rxlexi wrote:Updated renderings look fantastic. Love the staggered balcony placement and two story common area (?) on top.

Would be nice to see additional retail thrive here along with the opening of the new hotel nearby and mini-hub containing LuLu's/Jacobson/Italian market etc.

Good thing they found a construction partner who "knows" urban development and could price accordingly. LOL!!

I likey,... A lot.

earthling wrote:I likey,... A lot.

My initial reaction as well.

I wish this building was going to be condos...

The market conditions aren't right for new condo development. The national trend last few years has been towards leased units and KC is no exception. What some apt developers are doing is planning to lease for X many years then go condo when market conditions are right. It also makes it easier to transition when all/most units are leased than trying to sell units up front with no building constructed yet. Some even plan studio/one bedroom next to each other for an optional future joining when going condo. We probably won't see many if any new direct condo developments for a while, many cities won't.

Understood, but my wish remains.

Agreed, we need more condos right now to take all our new apartment residents who want to invest in their housing vs rent to have options to buy....I understand the market conditions, just from a growing downtown population perspective that would be a nice advantage to have once these apartment dwellers tire of renting.

the only two condo projects i'm aware of are small ones in the crossroads -- 1500 block of main and 18th and mcgee.

Condo projects are harder to pull off because of lending requirements to buy a condo. Most lending institutions will only give loans on a condo if there is already 50 percent ownership of units in the condo building. Thus, condo builders have to fill the first half of the units with cash buyers. Most home buyers can't pay cash, and have to borrow.

In larger cities where there are a lot of condo conversions, the first buyers in a condo project often are investors who have cash, and want to buy real estate where values are going up quickly, and then rent their unit.

I bet KC will see a hybrid model in more buildings. Arterra is the scale where this model could work.

If the building is 90% occupied and earning income from renters a single unit can be sold without affecting the solvency of the company and banks aren't going to be worried the project won't happen. For example, last I knew Union Carbide was owner occupied on the only floor with patios, it was rental for 6 floors and the penthouse was left empty for a custom build. They were trying to sell some units as they came empty.

flyingember wrote:I bet KC will see a hybrid model in more buildings. Arterra is the scale where this model could work.

If the building is 90% occupied and earning income from renters a single unit can be sold without affecting the solvency of the company and banks aren't going to be worried the project won't happen. For example, last I knew Union Carbide was owner occupied on the only floor with patios, it was rental for 6 floors and the penthouse was left empty for a custom build. They were trying to sell some units as they came empty.

It doesn't work that way. FHA and Fannie Mae require over 50% owned or under contract before guaranteeing a loan. This may very well change when the Dodd-Frank act is repealed while The Donald is making things great again. Until then, those first 51% of buyers must be cash or owner financed and that puts a huge strain on most developers and owners, especially in a strong rental market like we have, at present.

I just gave you an example where two of 27 units were sold in a building.

It may be hard and rare, but it does happen.

Lots of things happen. For example, Sasquatch shits in the woods, last I heard.

That would be one Big Turd. *rimshot*

Also Rick Powell was owner financing at Union Carbide so that is why it is an exception. Source: I almost bought a unit there several years ago.

smh wrote:Also Rick Powell was owner financing at Union Carbide so that is why it is an exception. Source: I almost bought a unit there several years ago.

He wasn't the only owner.

Source: I worked in the building, worked with Rick Powell occasionally and had access to the building from basement to roof (decent view).

Sure, but the building was owner financing. Hence it is an exception.