ATLANTA | Development Thread V

[(four 0 four)]

Originally Posted by cybele

The last I read that big Novare thing (I forget what it was called) at Atlantic Station was 0% sold.

Technically you are correct that they are 0% sold but that doesn't mean there aren't units under contract. A new building is required to have a certain percent under contract before sales (closings) can begin.

[cybele]

Originally Posted by briantech

The Atlantic?

Yep, I believe that's it. Another great building that's being clobbered by the recession and the fact these bankers won't loan anybody a dadgum dime.

[sevensixtwo]

...and the black glass destroyed the image Novare marketed. And the crown, which HAS grown on me, is made out of highway sound barrier material. Overall, not a real good looking building.

[cybele]

Well you have to give a few of these developers credit for at least putting up something. So many of them just threw in the towel and abandoned all hope when the money dried up.

[gttx]

Originally Posted by cybele

So many of them just threw in the towel and abandoned all hope when the money dried up.

Isn't that the point? No money....no buildings.

[cybele]

Well yeah but you can go a long way as long as it's OPM.

[A-town]

Originally Posted by cybele

Well yeah but you can go a long way as long as it's OPM.

It's this attitude that caused the housing market to crash, not very economical.

[cybele]

Well what we want these developers to do, just quit building?

[sevensixtwo]

that's probably the best idea in the meantime.

[chrslyp]

i heard the problem with the Atlantic had more to do with the bank than anything.

the guy who told me, knows people at novare. why units aren't being closed i can't remember (perhaps because no one is buying them), but i think i remember him saying that the bank might be in control of the building and doesn't want to spend money to operate the building, which would happen if they only had a small percentage of the units sold and had to pay/make up for the difference of cost to operate the building and the HOA dues they recieve, since such a small amount of units have been sold, the HOA revenue generated doesn't come close to paying to completely operate the building/pay for utilities, etc.

novare is hoping to maybe sign a deal with the bank to operate the building on the bank's behalf for a fee, of course.

[Pessimistic Observer]

Originally Posted by sevensixtwo

that's probably the best idea in the meantime.

just wondering what do you guys think developers should do if they've broken ground on a building just prior to a recession: should they stall like the streets at buckhead has; give up and let the building stay a skeleton which actually happened to a couple of buildings during the dot com crash; or finish the project and hope for the best

[A-town]

Originally Posted by Pessimistic Observer

just wondering what do you guys think developers should do if they've broken ground on a building just prior to a recession: should they stall like the streets at buckhead has; give up and let the building stay a skeleton which actually happened to a couple of buildings during the dot com crash; or finish the project and hope for the best

It depends on the developer and whether or not they can maintain a building on the revenue they have coming in from other sources. Take a developer like Cousins 10 Terminus Place, they were having problems selling the units like everyone else. But the difference between Cousins and other developers is that Cousins owns 10 Terminus Place. So if the developer is building a property with their own money that they know will eventually sell, then yes they should build it. But, if they are using someone else's money they should do us all a favor and hold. When you're using your own money, you use better judgement, probably the reason Cousins never went through with The Premiere at Fox Plaza. This is what has made them such a successful company, knowing when to build and when to hold.

[patrick84]

Regarding Novare and the Atlantic... I wonder at what point they will decide to go apartment with that building? Seems like the wisest move in this market. Keep your lease terms short (6mo-1yr) and if the condo market significantly recovers in Atlanta in the next decade re-open the discussion for that building to be condo.
With the reputation Atlantic Station continues to herald and the economy, it is no surprise those places aren't moving (not to mention they seem severely over-priced).

[cybele]

Originally Posted by patrick84

With the reputation Atlantic Station continues to herald and the economy, it is no surprise those places aren't moving (not to mention they seem severely over-priced).

Well I would have guessed the reputation of Atlantic Station is pretty good. Is that not true anymore?

[chrslyp]

Originally Posted by patrick84

Regarding Novare and the Atlantic... I wonder at what point they will decide to go apartment with that building? Seems like the wisest move in this market. Keep your lease terms short (6mo-1yr) and if the condo market significantly recovers in Atlanta in the next decade re-open the discussion for that building to be condo.
With the reputation Atlantic Station continues to herald and the economy, it is no surprise those places aren't moving (not to mention they seem severely over-priced).

i agree.

however, i think the problem there is that novare's financing was set up for a condominium building. so, to change the condos to rental, after the fact would mean that novare would have to go back to the financier and get a few things worked out, which, i'm assuming would change the terms on the loan and cost novare quite a bit of money.

it's my understanding that currently, novare could rent out some of the units but they can't go beyond a certain percentage (i don't know the amount).

but like i said in my previous post, it's my understanding that novare doesn't even have control of the atlantic anymore, it's their financier, and they're the ones who have decided to not open the building, because it's going to cost them less to do so.

[TarHeelJ]

Originally Posted by cybele

Well I would have guessed the reputation of Atlantic Station is pretty good. Is that not true anymore?

It depends on who you ask...

[cybele]

What's the issue with Atlantic Station's reputation?

[sevensixtwo]

I'd say the AS enthusiast demographics aren't appealing to all potential demographic profiles. ACF racial ranting: ACTIVATE!!!

[cybele]

Well I'm not following all that but I am sorry to hear it. I would have guessed Atlantic Station was pretty urban and diverse.

[atl2phx]

Originally Posted by sevensixtwo

I'd say the AS enthusiast demographics aren't appealing to all potential demographic profiles. ACF racial ranting: ACTIVATE!!!

spoken like michael scott @ dunder mifflin. a load crap.

what are the AS enthusiast demo's?
what are the potential demo profiles?

WTF?