ATLANTA | Development Thread VI

[Verge]

Originally Posted by atlwarrior

So my intrepration they couldn't secure financing and will take this plan of pre sold units to the bank.

A certain percentage of pre-sales is almost always required for condo financing, no matter the strength of the market or developer.

[MdtwnATL]

Originally Posted by DNR

Proton Therapy Center Update

http://atlanta.curbed.com/2016/10/6/...moving-forward

This is the one project in Midtown I truly hate.

[atlwarrior]

Originally Posted by Verge

A certain percentage of pre-sales is almost always required for condo financing, no matter the strength of the market or developer.

Okay! It just baffle me that they announced groundbreaking around October or November at DRC meeting . I guess pre selling units was what they really meant.

[arctk2014]

Stumbled upon a rendering for Phase II of Modera Morningside (under construction).





https://www.yelp.com/biz/modera-morningside-atlanta

[Ant131531]

Kind of looks like one of those cheap motels from the 2nd picture lol. Not a good look.

[jddar]

Originally Posted by Ant131531

Kind of looks like one of those cheap motels from the 2nd picture lol. Not a good look.

You're seeing something different than what I see. Look how large those balconies are! On the first rendering they're nearly as big as an indoor room.

[Libertarian]

It ties into the Phase 1 of the development. Stand-alone but will be seen as part of the total project integrity. I drove by and checked out the overall street appeal and it looks fine to me.

[RocketSurgeon]

Originally Posted by DNR

Proton Therapy Center Update

http://atlanta.curbed.com/2016/10/6/...moving-forward

I give those PR gymnastics a ten. The "matters" holding up the project were an involuntary bankruptcy petition and accusations of embezzlement, and being in the "final stages of selecting a financing strategy" means they don't have financing. I do hope it works out so we can be rid of that hole in the ground but I think 98 14th has a better chance of being built.

[Libertarian]

being in the "final stages of selecting a financing strategy" means they don't have financing.

Here's what I had previously commented on the financial challenge of this project..
http://forum.skyscraperpage.com/show...15#post7443515
It would be intriguing to see how it works to induce a source of funding. I hope they can pull it off.

[Pemgin]

What amount of pre-sells is typically necessary for a condo tower to get out of the ground?

[Atlanta3000]

http://thecharlesbuckhead.com/

[Atlanta3000]

Originally Posted by Pemgin

What amount of pre-sells is typically necessary for a condo tower to get out of the ground?

If this is in reference to the 98 Fourteenth Street project, not as many as the article stated in the Atlanta Business Chronicle this week. The article stated, "a significant number a units will need to be sold before construction begins."

The fact is this project will have a total of 580 total units - 400 condo - 180 corporate apartment suites. Net, net - they only need to pre-sell 110 condos and the building will be at 50%. If you look at other markets (Dallas, Houston, New York and Miami) developers are getting bank financing when projects have between 20 - 40% of the units pre-sold. Considering Atlanta is the 5th largest housing market in the country and we have seen almost no condo development in the last 8 years, I suspect banks will be less restrictive. Also if the developer is able to provide/raise a significant equity position they should be able to start the project ASAP. They have stated they want to break ground this fall.

[Ant131531]

Might be a top 5 housing market in terms of raw volume, but still need enough people who have the money to buy the units. For example, The SF MSA market is 4.8 million people, but probably has more people who can afford these types of condos vs. Atlanta market. We'll see. I've slowly grown more skeptical of this project breaking ground the more I thought about it and how much units there are to sell.

[Atlanta3000]

SLS Midtown Hotel Project

There will be a story in tomorrow's Atlanta Business Chronicle the developer has closed on the 1122 Crescent Ave property - brokered by Cushman & Wakefield. So this project is moving fast.

[Atlanta3000]

Originally Posted by Ant131531

Might be a top 5 housing market in terms of raw volume, but still need enough people who have the money to buy the units. For example, The SF MSA market is 4.8 million people, but probably has more people who can afford these types of condos vs. Atlanta market. We'll see. I've slowly grown more skeptical of this project breaking ground the more I thought about it and how much units there are to sell.

Not true, from Zillow:


SF area houses for sales greater than $1 Million - 1,357

http://www.zillow.com/homes/for_sale...t/10_zm/0_mmm/

ATL area houses for sales greater than $1 Million - 1971

http://www.zillow.com/homes/for_sale...xn_crid/0_mmm/

[Ant131531]

Originally Posted by Atlanta3000

Not true, from Zillow:


SF area houses for sales greater than $1 Million - 1,357

http://www.zillow.com/homes/for_sale...t/10_zm/0_mmm/

ATL area houses for sales greater than $1 Million - 1971

http://www.zillow.com/homes/for_sale...xn_crid/0_mmm/

That means nothing. You do know the median housing price in the SF Bay Area is around 855k right? That means 50% if all homes are above 850k dollars. The median housing price in Atlanta is 247,000. That means there are far more houses in the SF Bay Area valued at above 1 million. If anything, that links shows that there are less homes available at 1 million in the SF Bay Area so there's a lot of people who are buying the homes hence the lower available supply. You can also see in the link below that SF is in the bottom 2 for number of active listings and median days on the market. This means housing is being bought up so quickly in SF which sort of proves my point. There are far more people who can afford 1 million homes in SF because the wages are so much higher and much more lucrative industries....I just don't feel like Atlanta is there yet...not sayin this project can't break ground, but our wages aren't competitive like that.

Source: http://www.city-data.com/forum/city-...as-2016-a.html

[shivtim]

Originally Posted by Libertarian

Here's what I had previously commented on the financial challenge of this project..
http://forum.skyscraperpage.com/show...15#post7443515
It would be intriguing to see how it works to induce a source of funding. I hope they can pull it off.

I actually hope they don't pull it off. This is a prime corner on Peachtree street, and a low-rise medical facility is a horrible use. Maybe if they can't get financing a different developer can come in. I think we're stuck with what was already built on the eastern portion of the site (of course this can be adapted for a different use), but the Peachtree side is still pretty wide open and a tower could easily go there.

[Libertarian]

Going vertical on that corner (with medtech or similar) could be one way to make the whole thing viable.

[Street Advocate]

Originally Posted by Libertarian

Going vertical on that corner (with medtech or similar) could be one way to make the whole thing viable.

Considering we want dedicated lane transit on North Ave, I really hope they go vertical on the western portion of the lot. Current proposed use is lackluster, despite the benefits of a proton center.

[Verge]

Originally Posted by jddar

You're seeing something different than what I see. Look how large those balconies are! On the first rendering they're nearly as big as an indoor room.

I agree-- very nice building. BTW a lot (not all, of course) of those 1960's motels were great and are only now being appreciated again--