Block 23

[fawd]

Whoa - that is really cheap. My 2-br at 44 Monroe was $2,250+fees and that was a few years ago.


I wish renting was that affordable in Orange County!!!

[0214685226]

Originally Posted by kevinp

I received an email today from The Ryan with the headline "NOW OFFERING: DRASTICALLY REDUCED RATES ON ALL HOMES"

Studio $1,399
One Bedroom $1,338 (no idea how this is lower than studio)
Two Bedroom $2,101

Additional specials of
4 to 6 weeks free
$500 gift card
Reduced rates on parking
Waived application and admin fees

Man they must be desperate. I toured there in June and agree it was really nice but not worth the original price tag. The lower rates though... crazy tempting.

Those prices are a big reduction from what was previously stated, however $1338 for a 1 bedroom is pretty cheap. I was paying $1330 in 2010 and this wasn't in a cool, hip, downtown location and there weren't any specials to be heard of.

[CrestedSaguaro]

There's an interactive map on their site showing what's available: Here's the Ryan floor map: https://www.theryanapartmentsphoenix.com/floor-plans/

As I would expect, the top floors (13 - 17) are 100% leased. However floors 9-12 is a different story with only a total of 4 total units leased. The remaining lower floors (5 - 8) are all right around 1/2 leased give or take.

[Diamonddave]

I like the studio floor plan. It gives on a private bedroom . where most studios have an open room concept.

[MMDelon]

That's stupid cheap! If prices were like that constantly I would downtown right now.

[MMDelon]

But I expect those studios to be gone very fast. That's a big move by The Ryan especially with everything going on.

[Phxguy]

Anyone know how the Fry’s is doing? I know it’s somewhat banking on the upstairs neighbors.

[CrestedSaguaro]

Originally Posted by Phxguy

Anyone know how the Fry’s is doing? I know it’s somewhat banking on the upstairs neighbors.

I've been going there nearly every day for lunch (to grab a bite to eat and get free parking while I walk Downtown). It's been fairly steady considering the rest of Downtown is pretty much dead.

[Mr.RE]

If they are offering 4-6 weeks free on TOP of $1300 one bedroom rent, your effective monthly rent is like $1,100.. to live in a high-rise in arguably the best downtown location? Uhh yeah if any of you were considering moving here it wont get much better than this. Sign a lease then send us cool pics of the view from your home

[Phxguy]

Originally Posted by CrestedSaguaro

I've been going there nearly every day for lunch (to grab a bite to eat and get free parking while I walk Downtown). It's been fairly steady considering the rest of Downtown is pretty much dead.

That’s good to hear. I was worried it would be another casualty of the pandemic without the office workers around.

My friend, who previously worked at that location, mentioned most of their sales were made through lunch items and snacks sold to office workers rather than large purchases from nearby residents.

[CrestedSaguaro]

Originally Posted by Mr.RE

If they are offering 4-6 weeks free on TOP of $1300 one bedroom rent, your effective monthly rent is like $1,100.. to live in a high-rise in arguably the best downtown location? Uhh yeah if any of you were considering moving here it wont get much better than this. Sign a lease then send us cool pics of the view from your home

If the prices hold out a few more months, I would look into this. However my lease isn't up till December. Not sure these will last that long at these prices

Originally Posted by Phxguy

That’s good to hear. I was worried it would be another casualty of the pandemic without the office workers around.

My friend, who previously worked at that location, mentioned most of their sales were made through lunch items and snacks sold to office workers rather than large purchases from nearby residents.

Yea, mostly like me, most seem to be just purchasing something small during lunch. But I do see occasional people with cart-fulls getting on the elevator going up to the garage, so some are doing their weekly shopping there. I don't go there much during the evenings, so not sure how business is after-hours.

[biggus diggus]

So I've been thinking about these rents at The Ryan.

All of the new stuff downtown is the same class of apartment at about the same price point. We will naturally see different buildings position themselves within the market based on how much the owners want to spend on maintenance, marketing, or upgrades.

The Ryan seems to be taking a better approach that I agree with. Get butts in the seats. Vacancy is the killer and a lot of apartment management companies are focused more on the CAP because it will always affect resale or refinancing. Higher CAP = better marketability. They don't care if they have 20% vacancy because the 80% that's leased is at top of market and it makes their average rents look great.

The cheap rates and specials would tell me that the ownership (it's RED, right?) is digging in for a long term hold - smart I think whether it was the original plan or not - and minimizing vacancy. This is what we do in my business of buying for long term holding, but it's pretty atypical in the commercial apartment game.

Am I remembering correctly that RED has subsidized just about every commercial tenant in both phases of Cityscape? Where is all this money coming from? They handed out 18 months of free rent to Urban Outfitters and Par Exsolance in the beginning.

[fawd]

Originally Posted by biggus diggus

Get butts in the seats. Vacancy is the killer

I think this is exactly their mentality. I actually had a similar experience in Huntington Beach a couple of years ago. It was a brand new apartment building and they had similar offers just to get occupancy up. 2 months free, reduced monthly rent etc.

Ended up getting a 2-br for $6k per month on a 18mo lease. We've since moved out and gotten a house in the area... and now they are pricing similar units in the $9k+ range.

In this case, it appears the strategy paid off - they are at full capacity and rents are where they intended them to be 2 years later.

[somethingfast]

Not to be overly pessimistic but what are the chances that with the state of the economy as a direct consequence to (to me, hysteria over) Covid that all these prices will come WAY down and likely result in developers going bust? I mean, this is serious, serious times for banks and developers. Great deals will come for sure but if nobody is working downtown (hyperbole, I know) for a while, who would want to live there??? Will be fascinating to see how this all plays out. As a proud Arizonan and fan of DT Phoenix, I pray things get better...and fast.

[TJPHXskyscraperfan]

Originally Posted by somethingfast

Not to be overly pessimistic but what are the chances that with the state of the economy as a direct consequence to (to me, hysteria over) Covid that all these prices will come WAY down and likely result in developers going bust? I mean, this is serious, serious times for banks and developers. Great deals will come for sure but if nobody is working downtown (hyperbole, I know) for a while, who would want to live there??? Will be fascinating to see how this all plays out. As a proud Arizonan and fan of DT Phoenix, I pray things get better...and fast.

Yep, the whole reason I would want to live at The Ryan is to walk to a Suns or DBack game, along other reasons. I sure hope the next basketball season 2020-21 starts in December with fans In our brand new arena but we will see. Everyone working from home is really hurting downtown. I live in midtown across from City Square and there seems to be a lot more people going to the office the past month or so. Anyone know what downtown is looking like, is there more people going to the office?

[Obadno]

Originally Posted by TJPHXskyscraperfan

Yep, the whole reason I would want to live at The Ryan is to walk to a Suns or DBack game, along other reasons. I sure hope the next basketball season 2020-21 starts in December with fans In our brand new arena but we will see. Everyone working from home is really hurting downtown. I live in midtown across from City Square and there seems to be a lot more people going to the office the past month or so. Anyone know what downtown is looking like, is there more people going to the office?

Downtown is a ghost town. Bars closed, Schools closed, no shows, no sports, no conventions, no Hotels, no First Friday plus its summer.

The only things functioning are construction and the Courts. Although I expect things to be better as the summer gives way to school starting, that will bring a lot of nightlife and restaurants back, then its the slow process of offices having more people come in, shows starting, etc etc.

But as far as how will the Economic impact be? Nobody actually knows I cant think of any situation that we could point to to predict whats going to happen, modern economies have never voluntarily closed themselves before.

My guess is the impact will be like a wartime disruption. Meaning there will be big adjustments but when things start to come back they will come back fast. There is plenty of pent up demand.

[TJPHXskyscraperfan]

Originally Posted by Obadno

Downtown is a ghost town. Bars closed, Schools closed, no shows, no sports, no conventions, no Hotels, no First Friday plus its summer.

The only things functioning are construction and the Courts. Although I expect things to be better as the summer gives way to school starting, that will bring a lot of nightlife and restaurants back, then its the slow process of offices having more people come in, shows starting, etc etc.

But as far as how will the Economic impact be? Nobody actually knows I cant think of any situation that we could point to to predict whats going to happen, modern economies have never voluntarily closed themselves before.

My guess is the impact will be like a wartime disruption. Meaning there will be big adjustments but when things start to come back they will come back fast. There is plenty of pent up demand.

Yeah, a lot of students are renting up apartments downtown even though they will probably be having most classes online. I’m the Cox Rep for Roosevelt Row. This is my busiest time of year as I have many properties in Tempe as well. I was really worried students might just live at home or wherever and to my surprise they are still moving in and there is even some pent up demand as well! Hopefully next semester will look more normal for everyone.

[combusean]

An Urban Outfitters is a sign to retailers a downtown area has come back, so it would make sense to subsidize them. I didn't realize they were getting free rent, but I suppose it would have to. The store was totally dead its first Black Friday and by far the worst performing location.

[exit2lef]

Eddie's barber shop reopened in May when the governor lifted restrictions. He's operating only two days a week, though, due to diminished demand. When I visit him or my office, Downtown feels like 10 years ago or more in terms of activity and foot traffic. On the other hand, there's still plenty of construction going on, so I'm hopeful for the future.

[Obadno]

2020 just gets a big asterisk for everything.