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  #12361  
Old Posted Dec 29, 2021, 7:00 AM
Blah_Amazing Blah_Amazing is offline
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I think one of the things that impact condo construction is the still dominant belief by many in our market that multifamily housing is for college students and young single people who will 'obviously' want to live in a single family house when they get married or are financially 'ready'. It's all still very suburban and nuclear family mentality focused development, even when it's apartment towers being built in the city.

As housing prices and rent have skyrocketed, there is a real concern that many who are currently renters may in fact get stuck renting for life. This is because with rent being high compared to income, it makes it difficult (if not impossible for many cases) to save enough to purchase a house. This is then compounded by the fact that housing prices are also rising simultaneously. This could lock many people permanently out of homeownership, which is still considered key in many cases in building and retaining wealth and security.

As for the increased profit motive for developers to build apartment complexes, if a developer can build a bunch of single family houses for sale, or townhouses for sale, they can also build a condo building. If the driving force was solely the potentially more lucrative profits by building apartment complexes, then single family houses would essentially stop being built, cause they are also one-and-done with low future profit potential. Instead, we are still seeing tons of sf houses being built.

I would also argue against the idea that our lack of condo building is because of federal government regulations or requirements, primarily because if that were true condos wouldn't be getting built anywhere really. Except they are. Chicago, for one, is practically littered with new and under construction condo towers (many of which are similarly priced to SLC's condo market). But that has become what that market has deemed to be a 'normal' type of housing (unlike here). So that really doesn't seem like the reason we aren't seeing condos being built in the SLC market.

Those of us that want to own instead of rent are essentially then forced into buying sf houses because that is what has been built. This leads to a self fulfilled appearance of demand, creating the assumption that those seeking to own only want sf houses. However, if developers actually took the supposed risk and built condos they would start to finally see that there is plenty of demand for condos as well.

Last edited by Blah_Amazing; Dec 29, 2021 at 7:12 AM.
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  #12362  
Old Posted Dec 29, 2021, 9:20 AM
bob rulz bob rulz is offline
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We just lack local developers with vision and money to be willing to do it. Our biggest developers are also cheap and build pretty low-quality stuff (Ivory, Boyer).
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  #12363  
Old Posted Dec 29, 2021, 4:01 PM
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I follow this forum quite often as I have investments in SLC and Austin. I never thought I would see such amazing, 800-1000ft condo / office towers in downtown Austin as what's been constructed over the last decade. The biggest difference between Austin and SLC I see, is that there are massive corporations in downtown Austin -- Facebook, Oracle, Google, etc. Also the river and the hike and bike trails are all downtown. However, SLC has the mountains, the gorgeous Capital building on the hill, the Tabernacle - so there are a lot of draws to downtown SLC. The University and the airport are all so close - so I'm also very confused as to why there are no condos. Is there a stigma that SLC is still just a college town? Why doesn't the city council require condos as part of a redevelopment plan? I love a lot of the new buildings coming online - like Astra - but a majority of the 4 story, stucco apartments are what Austin is bulldozing. I'm shocked that no one on the city council says something like... "I'm not going to be the one that approves the 180th- 4-5 story, tan/brown apartments!" I think we still need more employers to move downtown and we need big time investors from other states.

The difference is that the tech companies and state and local officials are all trending with the sprawl/stand-alone office park out in Lehi, Draper. The Point of the Mountain development also points to that the government and developers still prefer these newer/cheaper developments over downtown SLC. If we had Pluralsight, Qualtrix, etc build in downtown SLC, we would be having multiple gleaming new office towers.
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  #12364  
Old Posted Dec 29, 2021, 5:04 PM
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Originally Posted by Blah_Amazing View Post
As for the increased profit motive for developers to build apartment complexes, if a developer can build a bunch of single family houses for sale, or townhouses for sale, they can also build a condo building. If the driving force was solely the potentially more lucrative profits by building apartment complexes, then single family houses would essentially stop being built, cause they are also one-and-done with low future profit potential. Instead, we are still seeing tons of sf houses being built.

I would also argue against the idea that our lack of condo building is because of federal government regulations or requirements, primarily because if that were true condos wouldn't be getting built anywhere really. Except they are. Chicago, for one, is practically littered with new and under construction condo towers (many of which are similarly priced to SLC's condo market). But that has become what that market has deemed to be a 'normal' type of housing (unlike here). So that really doesn't seem like the reason we aren't seeing condos being built in the SLC market.

Those of us that want to own instead of rent are essentially then forced into buying sf houses because that is what has been built. This leads to a self fulfilled appearance of demand, creating the assumption that those seeking to own only want sf houses. However, if developers actually took the supposed risk and built condos they would start to finally see that there is plenty of demand for condos as well.
Here's the rub Blah: They aren't building single family homes nearly fast enough either. SFR requires a bunch of capital up front on acquisition, sometimes 50% down or all cash. Then they are in conventional construction loan territory. To your point, the only new build condos in SLC right now are the Washington Street condos at 933 S. Washington. 4 active new build condos in the capital city. Why? In this easy money lending environment, there is little appetite for risk outside of the CBD. What is the easy money? It's a thing called HUD 221(D)4, also affectionally known by developers as a "D4" loan. Basically get through the rough and tumble construction process, refi into a D4 loan at 3% on a 40 (!!) year amortization, take a huge chunk of the refi proceeds as a tax free "lended funds" event and then either hold it for a bit or sell it to a Korean REIT for a 4 cap and a 21% return. Rinse, repeat, all over Utah, and all over American, including Austin BTW and there you have it.

My thoughts on why other cities are seeing so many more condo developments are thus: there is no excuse. Well other than lazy developers with lack of vision. Same reason we don't have boutique hotels. Lazy lazy lazy.
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  #12365  
Old Posted Dec 29, 2021, 5:15 PM
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Evo

Got to tour the EVO Project last week. It's almost done and JUST WOW. Major game changer in SLC and a critical link up in the Granary. It's a really a special project: indoor skate park, Level 9 is back in their pace and it's spectacular, EVO flagship store that will make REI look stupid, MASSIVE climbing gym and best of all? A 50-60 key boutique hotel (see above) linking it all together! Got to walk about 40 of the rooms and it is easily the coolest hotel I've ever seen for outdoor minded folks. WILD stuff. Hugely stoked on this project. Also walked the former Rico Tacos warehouse complex, which really reminds me of a smaller version of the "Source" in RiNo. Food hall, front facing bars on 700 S., big tech office attached. Well done. Also, 6 more acres just traded hands on one of the most critical blocks. Granary is popping!
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  #12366  
Old Posted Dec 29, 2021, 5:26 PM
meman meman is offline
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Yea, its too bad we have such lazy visionless developers in salt lake city, maybe with all the outside developers starting projects in salt lake city, things will get better and maybe we will get more innovative and flashy new developments, especially in downtown, only hoping.

Also I drove by the Astra site this morning, it looks like Excavation is well under way.

Speaking of developments, does anyone know why nothing is going on at the Moda Luxe Site?
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  #12367  
Old Posted Dec 29, 2021, 5:34 PM
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Originally Posted by Orlando View Post
The difference is that the tech companies and state and local officials are all trending with the sprawl/stand-alone office park out in Lehi, Draper. The Point of the Mountain development also points to that the government and developers still prefer these newer/cheaper developments over downtown SLC. If we had Pluralsight, Qualtrix, etc build in downtown SLC, we would be having multiple gleaming new office towers.
Generally speaking, Tech companies do not like skyscrapers/small floor plates. They like sprawling suburban campuses. Look at Apple's campus, Microsoft, Google, Facebook, Oracle- they're all sprawling campuses with numerous buildings. There are some exceptions like Salesforce's newish tower in dt SF.

I've worked in tech, both Fortune 100 and local Utah companies for essentially my entire career of nearly 20 years- for better or for worse, being cooped up in a 20K floor plate with the hustle and bustle outside if they want to take a peaceful break/walk, is not the culture most in the tech community seek out. Just real talk. NYC and SF are different because the companies grew up there and they adapted, however, many of them ultimately put down their final roots in the more spacious areas of Cupertino, San Jose, Mountain View, Menlo Park, etc.

I'm not saying everyone is this way, but a lot of these companies are building gardens, quiet spaces, walking paths and other similar spaces on their properties where employees can get out, walk around, clear their mind, relax and whatever before going back to the grind and coding for hours on end.

Let's also not forget how these companies see office space has changed drastically over the past two years. My companies offices have been closed since the middle of March, 2020. Hundreds of thousands of employees will likely work remote either full time or a hybrid model even when the pandemic is officially behind us. TBH, I wouldn't be surprised if we see a massive downsizing or at least moderate reduction in total sq. footage by many of these companies as we arrive at the cliche term of the "new normal"- yes, I hate it, but it likely will be relevant for many companies looking to keep employees happy while keeping efficient and improving profitability.

Also of note, Ryan Smith lives about 3 minutes from Qualtrics' Provo HQ and Pluralsights CEO is building a new home in Alpine rn. Josh James also lives in Alpine and a number of other CEO's and high-level mgmt for many of Utah's tech companies live in Northern Utah County and Southern SL County- highly doubt they're moving anywhere anytime soon.

In short, I don't think dt SLC will ever play a more prominent role than the the Silicon Slopes area south and North of the Point of the Mtn. It will maintain the gov't center and a financial hub. I think tech will always be mostly concentrated from 106th down to Pleasant Grove blvd Exit. I actually think there will be a "Tech Loop" that goes down I-15 between those exits, then over 2100 N to Redwood, up to Bangerter Hwy on the north side of the prison property. That will be the Tech bullseye in Utah. It's forming there because it's basically right in the center of the Universities in the state/population centers. And honestly, once the Cedar Valley (large valley currently empty for the most part where Eagle Mountain, Cedar Fort & Fairfield and Facebooks new server farms are located) fills in w/ 500K-1M residents in the next 50+ years, spurred on by the tech growth and still relatively close to the "Tech Bullseye" (within 15-40 mins) Utah County will likely be the most populous county in the state.

I'm going on a tangent now, but yeah, those are just some of my thoughts...

Last edited by Wasatch_One; Dec 29, 2021 at 9:43 PM.
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  #12368  
Old Posted Dec 29, 2021, 8:31 PM
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And, I think this is exactly what is wrong with the thinking of the local Utah tech and government agencies. If they believed more in urban vibrancy/ connectivity and environmentally sustainable development, they would develop more like Austin or Seattle, etc. These guys don't get it. They don't understand what sprawl is. It sucks vitality out of existing urban places, and exacerbates unsustainable sprawl development. We already have a huge water/drought problem, and yet many people still think large single family homes with large yards are still ideal.

The main reason why downtown SLC is doing better than in the past, is because these new tech employees are choosing to reverse commute, and live in the city and then drive out to Silicon Slopes. The Granary and Station Center/ Gateway area are prime for well integrated mix of uses and awesome urban amenities, including parks, trails, stuff that we have not yet seen. We are in the early stages of seeing these areas blossom into incredible lively and character rich urban places, which tech companies would have an ideal place to set up shop.

Regarding the floor plates, Qualtrix just bought a highrise in downtown Seattle for their largest office, and Salt Lake City has very large blocks which allow for larger floor plates, like 650 Main and 95 State. Amazon started in a place like the Granary, called South Lake Union. They did the opposite of Microsoft, which set up shop way out in the suburbs back when that was more of the norm.
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  #12369  
Old Posted Dec 29, 2021, 9:32 PM
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Originally Posted by Orlando View Post
And, I think this is exactly what is wrong with the thinking of the local Utah tech and government agencies. If they believed more in urban vibrancy/ connectivity and environmentally sustainable development, they would develop more like Austin or Seattle, etc. These guys don't get it. They don't understand what sprawl is. It sucks vitality out of existing urban places, and exacerbates unsustainable sprawl development. We already have a huge water/drought problem, and yet many people still think large single family homes with large yards are still ideal.

The main reason why downtown SLC is doing better than in the past, is because these new tech employees are choosing to reverse commute, and live in the city and then drive out to Silicon Slopes. The Granary and Station Center/ Gateway area are prime for well integrated mix of uses and awesome urban amenities, including parks, trails, stuff that we have not yet seen. We are in the early stages of seeing these areas blossom into incredible lively and character rich urban places, which tech companies would have an ideal place to set up shop.

Regarding the floor plates, Qualtrix just bought a highrise in downtown Seattle for their largest office, and Salt Lake City has very large blocks which allow for larger floor plates, like 650 Main and 95 State. Amazon started in a place like the Granary, called South Lake Union. They did the opposite of Microsoft, which set up shop way out in the suburbs back when that was more of the norm.
Listen, I'm going to preface this by saying I'm an urban enthusiast and appreciate well thought-out and well planned projects and I agree with much of what you're saying, but honestly this isn't a local way of thinking specific to Utah- this disfunction is found across aaaall technology hubs (and cities around the country) like the Bay Area, LA, Seattle, Austin, Denver (DTC), and on and on- don't kid yourself.

Reality is that many (if not most) tech companies are headquartered or have large offices in the suburbs of these cities, rarely downtowns. This sprawl is found all over the country. Amazon did do something cool w/ their Seattle hq, but it's def the exception.

And ultimately, other than providing monetary incentives and tax breaks, government can't really control where they end up- the US isn't China or Russia yet ...and honestly, the government is absolutely awful at managing really anything and getting worse at doing it by the year.

This incompetence is unfortunately due to the way these interlocal agencies/committees/commissions are structured. By and large, the best and brightest are definitely not working for gov't entities and those that are, move on very quickly. (...yes, this is a generalization, but generalization are often based on some aspect of truth. That said, I do believe there are always exceptions to the rule, so no one go and get all triggered by this, haha).

One example of a number I've experienced, is of one of my best friends who worked for the state after graduating with his masters. He would go on and on about the depressing people and stories that he endured for the year or two he worked there, recounting stories of people just doing the bare minimum and talking about their retirement and pensions at some point in the distant future.

He left as quickly as he could once he gained the needed experience. After moving into the private sector, he became a VP of finance about 7 years ago at a small company with 10-20M rev at the time that has grown to 500M today and anticipating $1B valuation within the next 5 years. Over this same period of time he was promoted to CFO then CEO. Unfortunately, this is common through my anecdotal experiences. And unfortunately, this a similar situation exists with our education system here in the state where teacher turnover after the first 5 years is between 45-60% (56% in 2014, though that has come down into the upper 40s recently as the state has made a push to emphasize teacher retention).

Don't get me wrong, I have a ton of respect for teachers and feel it is an incredibly noble career choice. But you're not going to retain top talent with $40-$50K salaries. Honestly, I wish there was an incentive system where the best teachers could make $100K+ while the lower performers would be weeded out naturally that would properly compensate the importance of the position and the individuals educating our upcoming generations, but that is a different conversation altogether.

Anyway, in short, talented, ambitious (more than likely intelligent problem solvers) ...people are driven- state jobs are the antithesis of this ambition, which likely causes much of the disfunction. Combine that with the elected officials that are often times very narcissistic, wanting and make their mark in a short 4 or 8 year term that will catapult them to a higher-level elected position and that is what creates the perfect difunctional storm that drives us on this forum all crazy wondering why certain things were done and poor decisions were made.

...just speaking truths here. We have to be honest with ourselves sometimes.

Last edited by Wasatch_One; Dec 29, 2021 at 9:51 PM.
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  #12370  
Old Posted Dec 29, 2021, 9:32 PM
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So good to have a couple of recent posts from you Wasatch_One. I especially enjoyed this last one above. I hope this means you'll be returning more often.

Marv, loved your post on EVO. Very excited to see it when I'm next in SLC.
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  #12371  
Old Posted Dec 30, 2021, 11:59 AM
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Gebus! Time to get my reading glasses out
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  #12372  
Old Posted Dec 30, 2021, 7:44 PM
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Is the West’s housing market overpriced? These Utah, Idaho cities rank as nation’s most ‘overvalued’

https://www.deseret.com/utah/2021/9/...alt-lake-boise

Here’s how the top 10 rankings landed, according to the research:

1. Boise, Idaho, where homes are selling at an 80.6% premium.
2. Austin, Texas, at a 50.7% premium.
3. Ogden, at a 49.7% premium.
4. Provo, at a 46.2% premium.
5. Detroit, at a 45.6% premium.
6. Spokane, Washington, at a 45.2% premium.
7. Salt Lake City, Utah, at a 42.4% premium.
8. Phoenix at a 42.3% premium.
9. Las Vegas at a 41.9% premium.
10. Stockton, California, at a 38.5% premium.

The typical value of homes in Boise was over $523,300 as of the end of August, up more than 46% over the past year, according to Zillow.


.
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  #12373  
Old Posted Dec 30, 2021, 11:02 PM
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Looks like some recent posts in this thread have been deleted. I don't think anyone said anything particularly disruptive or offensive, so I'm not sure what the justification for deletion was.

Anyway, here are some shots I took today of the West Quarter. It's coming along very nicely and I have to say that I was impressed by the scale of the project. The two buildings feel a lot bigger in person than in pictures. Definitely a project that shows that there are some local developers with big ideas. Bring on Phase II!



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  #12374  
Old Posted Dec 31, 2021, 12:39 AM
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Looks like some recent posts in this thread have been deleted. I don't think anyone said anything particularly disruptive or offensive, so I'm not sure what the justification for deletion was.
...I was thinking and noticed the same thing. I haven't posted here in years and hopped back on over the holiday break to see what was new and the forum definitely has a different vibe- that being a lot more censor happy today than in years past.

And it wasn't just today, either. It's happened a few times over the past week with no discussion, no explanation nothing- just wipe it clean and censor it
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  #12375  
Old Posted Dec 31, 2021, 4:58 AM
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Originally Posted by Wasatch_One View Post
...I was thinking and noticed the same thing. I haven't posted here in years and hopped back on over the holiday break to see what was new and the forum definitely has a different vibe- that being a lot more censor happy today than in years past.

And it wasn't just today, either. It's happened a few times over the past week with no discussion, no explanation nothing- just wipe it clean and censor it
Mine was deleted. I was only pointing out that Utah was still leading the nation in birthrate but had dropped to third in fertility rate lmao
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  #12376  
Old Posted Dec 31, 2021, 6:16 AM
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Mine was deleted. I was only pointing out that Utah was still leading the nation in birthrate but had dropped to third in fertility rate lmao
Saw that too. Do we even know who the moderator is any more?
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  #12377  
Old Posted Dec 31, 2021, 7:53 AM
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Saw that too. Do we even know who the moderator is any more?
Oh shit maybe it's the #deepstate
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  #12378  
Old Posted Dec 31, 2021, 2:33 PM
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Moda Luxe

Does anyone know whats going on with Moda Luxe?

There doesnt appear to be any activity at the site.
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  #12379  
Old Posted Dec 31, 2021, 3:01 PM
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Moda Luxe had a design update a few months ago and is awaiting reapproval from the PC.

They were alerted (likely by thanks to activity here or on the subreddit) to the fact that the state may build that monster 9-story parking garage behind their property, which will obscure the views west from their planned amenity spaces. They acquired the lot directly north and now have plans to build a taller building there. More info.

EDIT: coincidentally, the Moda Luxe design review is on the next PC meeting agenda (Jan. 12) that was just posted.

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Last edited by Atlas; Dec 31, 2021 at 11:26 PM.
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  #12380  
Old Posted Jan 1, 2022, 3:29 PM
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Originally Posted by Wasatch_One View Post

Combine that with the elected officials that are often times very narcissistic, wanting and make their mark in a short 4 or 8 year term that will catapult them to a higher-level elected position and that is what creates the perfect difunctional storm that drives us on this forum all crazy wondering why certain things were done and poor decisions were made.
Haha, this is also the perfect description of the Fortune 500 CEO. While the incentives may be somewhat different, money vs. power, human nature is not different in government than in business.
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