Quote:
Originally Posted by Phxguy
The lack of a mention of apartments in what the deal will require bit is slightly unnerving. Or maybe that's post jitters from the Derby axing. Besides the Fry's, that's the biggest part of this project and I'd hate to see it either scaled down.
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I don't necessarily think it's jitters from Derby but I do think there's a realization that we have a metric ton of apartments in the area and each one is a carbon copy of the next. Same price points, same kinds of finishes, the competition between them will be immense and I think the initial excitement blinded a lot of developers.
I don't mean this to sound insulting to anyone it's more just a "hey did you know?" type of comment. People building these apartment buildings have no interest in owning them long term and running them, they're just developers looking to cash out and sell to a REIT. If they think the product will be hard to sell in a year or two years, they aren't going to build it and I think we are getting to that point right now within this high end market. There's money to be made in the lower end products that everyone is overlooking but the land cost and construction cost at this location is too high to make any low end product pencil.