PITTSBURGH | Development Rundown II

[themaguffin]

Kraft is reducing space at PPG. All part of that commitment to Chicago, I mean duel HQ's...

http://www.bizjournals.com/pittsburgh/ne...kraft-heinz-leaves-heinz-57-and-its.html

[daviderik]

Did I read somewhere that the proposed hotel on Carson near the Duquesne incline was no longer happening? Or was another location?

[Private Dick]

Bakery townhouses kinda reminds me of Village of Shadyside, but overall plan looks to be more connected.

[Private Dick]

Hotel Indigo in the PTC:

[Private Dick]

Marriott Residence Inn - 3339 Forbes Ave (where those 2 old houses were, next to the new SkyVue apartment bldg):

[photoLith]

Wow had no idea about that project. Maybe one day Forbes will be bustling with activity all the way down to the highway on ramp and to the universities. And is that a new street they're putting through? I don't recall there being a street.

[TBone7281]

Cute shed:

Tiny House in Garfield

[Evergrey]

http://www.post-gazette.com/local/city/2...core-at-record-high/stories/201509010085

Rental rates for apartments in Downtown Pittsburgh at record high

September 1, 2015 12:00 AM

By Mark Belko / Pittsburgh Post-Gazette
If you’re apartment hunting in or near Downtown, don’t expect any bargains.

At $1.86 a square foot, the average rental rate for an apartment in Greater Downtown — the Golden Triangle, the North and South shores, the Strip District, Uptown and the lower Hill District — is at its highest level in the 4½ years the Pittsburgh Downtown Partnership has been measuring it.

The $1.86 rate, as of June 30, is 9 cents higher than it was at the end of 2014 and 22 cents higher than it was at the end of 2012. It is 4 cents more than it was at the end of 2013.

Jeremy Waldrup, the partnership’s CEO and president, said the rental rate is probably higher now than it has ever been and “speaks to the health of the market” in and near Downtown.

“It’s just the demand that we’ve experienced,” he said.

...

[BrianTH]

The house is a pilot project and Picker would like to build more, but the cost of excavation and water and sewer hookups have proven to be much more expensive than anticipated — and she’ll likely sell at a loss.

That's a bummer. I could see a significant market for these, but not if the fixed cost runs up the price too much.

[themaguffin]

Years ago, I used to read PNC's market economic reports. At one point, the page went away. I can't recall if it was a site redesign or something else, but I gave up on looking for them.

However, I found them again by accident today. Some of you may already read them, but if anyone is interested, here is the page:

https://www.pnc.com/en/about-pnc/media/economic-reports.html

[TBone7281]

Originally Posted by BrianTH

That's a bummer. I could see a significant market for these, but not if the fixed cost runs up the price too much.

The fact that she's going to take a loss on a 350 sq. ft. house that costs $100,000 sort of boggles my mind.

[BrianTH]

Originally Posted by TBone7281

The fact that she's going to take a loss on a 350 sq. ft. house that costs $100,000 sort of boggles my mind.

It would be interesting to see an accounting, but that implies to me the costs that don't depend much on the size of the house, what I referred to as fixed costs, are pretty high. It doesn't do you much good to keep the structure costs down if the foundation, permits, hookups, and so on make it uncompetitive.

[Private Dick]

Originally Posted by TBone7281

The fact that she's going to take a loss on a 350 sq. ft. house that costs $100,000 sort of boggles my mind.

Yeah... and I still can't get over the $100K price tag. Do they have giant yards or something?

[TBone7281]

Originally Posted by BrianTH

It would be interesting to see an accounting, but that implies to me the costs that don't depend much on the size of the house, what I referred to as fixed costs, are pretty high. It doesn't do you much good to keep the structure costs down if the foundation, permits, hookups, and so on make it uncompetitive.

Sweet Jesus, this article from June says the actual price tag on the property is almost $200,000.

http://triblive.com/news/allegheny/8555456-74/tiny-garfield-citylab#axzz3kVCFlVah

It also says that developing the lot alone is $65,000.

Originally Posted by Private Dick

Yeah... and I still can't get over the $100K price tag. Do they have giant yards or something?

...No.

Street View of 223 N. Atlantic

[Private Dick]

Originally Posted by TBone7281

Sweet Jesus, this article from June says the actual price tag on the property is almost $200,000.

http://triblive.com/news/allegheny/8555456-74/tiny-garfield-citylab#axzz3kVCFlVah

It also says that developing the lot alone is $65,000.



...No.

Street View of 223 N. Atlantic

This is really pretty ridiculous. I was intrigued (and tepidly supportive) at first, but have steadily moved in the direction of thinking that this is more of a gimmick than anything.

[Austinlee]

Originally Posted by Private Dick

Hotel Indigo in the PTC:

That fits the style of the PTC. I'd give it a thumbs up.

[Evergrey]

Originally Posted by Private Dick

this is more of a gimmick than anything.

That's where I've been since Day 1.

[Austinlee]

Originally Posted by TBone7281

The fact that she's going to take a loss on a 350 sq. ft. house that costs $100,000 sort of boggles my mind.

That's because it doesn't add up. Tap ins, at least where I am from can be about 5-10k each. The cost of the vacant parcel should be very cheap. Anywhere from 5-25k. I'm just not seeing where this project could possibly cost over 100k where she has to take a loss.
(Keep in mind the smartest business people i've ever had to deal with do a great job of always bellyaching that they "aren't making any money at all", and of course those are the most successful ones.)

Tiny houses should cost the purchaser around 25-40k, in my opinion to be attractive enough to carve out a niche market.

[Austinlee]

Ok, I just did a search in the West Penn Mulitlist for all houses in the city of Pittsburgh school district. There are 1,401 listings for sale right now. 501 of them are $100,000 or less. So already 35.76% of all normal sized houses are less than 100k.

[greg42]

Originally Posted by themaguffin

I mean duel HQ's...

Appropriate typo. ;-)