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  #81  
Old Posted Nov 13, 2007, 3:07 PM
Kevinb Kevinb is offline
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Keeping perspective: The Monarch had +/- 38 units which were priced more than the penthouses at 360. Thats 12.5% of the Monarch units that were over the mid $800's.

If you consider this, it's easy to see that the unit mix and time to market could have been a major influencing factor on the decision.

That computes to $35MM in inventory. The 360 had only four units price over $800K for a grand total of around $4MM.
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  #82  
Old Posted Nov 13, 2007, 3:37 PM
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Originally Posted by M1EK View Post
I had to put down 25% on my condo in Clarksville in 1997 because the majority of units were being rented out, but I was still able to buy. I guess I'm curious if there's any penalty for the builder in this scenario - had I put down a deposit and then had the unit yanked back, I'd be pretty pissed.
These were just deposits, not a contract to purchase the unit. The deposit contract indicates the builder reserves the right to refund money. The person who places the deposit also has a corresponding right to back away from the deal. Both sides may be liable for some penalty when it gets closer to the estimated closing date.
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  #83  
Old Posted Nov 13, 2007, 3:39 PM
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Quote:
Originally Posted by Kevinb View Post
Keeping perspective: The Monarch had +/- 38 units which were priced more than the penthouses at 360. Thats 12.5% of the Monarch units that were over the mid $800's.
Kevin, any word on why the Monarch chose to go with a mix like this? As difficult as those are to sell, I imagine they'll be even more difficult to rent out at a price that makes sense to them. It seems like they'll need 10k a month or so for each of those in rent.

Does making the whole building rentals again lower their appraised value for property taxes or will they still owe equivalent property taxes per unit at a valuation close to what they were going to sell them for?
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  #84  
Old Posted Nov 13, 2007, 3:44 PM
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Quote:
Originally Posted by Kevinb View Post
Keeping perspective: The Monarch had +/- 38 units which were priced more than the penthouses at 360. Thats 12.5% of the Monarch units that were over the mid $800's.

If you consider this, it's easy to see that the unit mix and time to market could have been a major influencing factor on the decision.

That computes to $35MM in inventory. The 360 had only four units price over $800K for a grand total of around $4MM.
I see where your going with this, but the Monarch penthouses you refer to could be divided. Maybe a better comparison could be over all inventory. The penthouses at Monarch are spectacular, including their balconies. The 360 not so sure about, especially the balconies. Not sure if this is an apples to apples comparison.

What are rents going for at Monarch? The article says $1650 for 681 sq ft. Does that extrapolate to $3300 for twice the square footage? The rents could tell us something about the strength of the condo market. It also depends on how they end up finishing the units out. This is a great opportunity for people to try downtown living before they buy. Its going to hurt other owner-investors that were planning on renting units already built.
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  #85  
Old Posted Nov 13, 2007, 3:47 PM
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"Kevin, any word on why the Monarch chose to go with a mix like this?"

No idea. FYI, I'm not the Kevin that is affiliated with the project. I would guess that it is something that has worked for ZOM in other locations.

The cumulative tax value would cetainly be much lower with TCAD as a rental project.
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  #86  
Old Posted Nov 13, 2007, 3:49 PM
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Originally Posted by M1EK View Post
had I put down a deposit and then had the unit yanked back, I'd be pretty pissed.
Boy, I would be, too. Especially if I switched from another condo to the Monarch because it was going to be finished earlier.
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  #87  
Old Posted Nov 13, 2007, 3:52 PM
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[QUOTE=JAM;3164154]The penthouses at Monarch are spectacular, including their balconies. The 360 not so sure about, especially the balconies. Not sure if this is an apples to apples comparison.[QUOTE]

Agree about apples to apples to some extent. However if you are a Buyer with a budget of $1MM and you want to live in a condo downtown, I think that these two products would be looked at as being in the same fruit basket...
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  #88  
Old Posted Nov 13, 2007, 4:57 PM
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[QUOTE=Kevinb;3164173][QUOTE=JAM;3164154]The penthouses at Monarch are spectacular, including their balconies. The 360 not so sure about, especially the balconies. Not sure if this is an apples to apples comparison.
Quote:

Agree about apples to apples to some extent. However if you are a Buyer with a budget of $1MM and you want to live in a condo downtown, I think that these two products would be looked at as being in the same fruit basket...
I'm not sure if I made my point clear. My point was in reference to when you said that there was $35M inventory of units priced in mid 800K, influencing their decision to switch back. I was just hypothesizing the developer might (might being the operative word) be able to divide these in half, and bring the high end mix in line with 360, and therefore possibly not an influencing factor in the decision to switch back. It seems more likely that they were simply under their bank's gun to have a percentage of units sold in order to obtain the next phase of financing for the project. This percentage was probably higher than 20% by early 2008.
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  #89  
Old Posted Nov 13, 2007, 5:49 PM
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Any word on if the finishings will now change at Monarch since it is converting back to apartments? Are they going to downgrade the kitchen cabinets and appliances and other amenities in the building (salt water pool?).

If not, it could possibly be a great place to rent especially if they give initial deals to get the building rented out quickly.
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  #90  
Old Posted Nov 13, 2007, 6:39 PM
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Im not liking the way FOX 7 is presenting thier story. It is almost like they are playing right to the NIMBY's and anti-growth segments of the city. I am going to be watching this week but I would like them to show alittle bit more of the positive side and not just the negatives.
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  #91  
Old Posted Nov 13, 2007, 7:00 PM
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Originally Posted by Jdawgboy View Post
Im not liking the way FOX 7 is presenting thier story. It is almost like they are playing right to the NIMBY's and anti-growth segments of the city. I am going to be watching this week but I would like them to show alittle bit more of the positive side and not just the negatives.
Good point. I guess that what news crews do, dramatize anything they can to sell commercials, but your right, it brings more NIMBY ammo to light. Now that I think about it, we are talking about FOX, The Fair and Biased news channel.
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  #92  
Old Posted Nov 13, 2007, 9:30 PM
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Good/positvie news doesn't get eyeballs, but bad/negative news does.
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  #93  
Old Posted Nov 14, 2007, 4:23 AM
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I watched the Fox7 segment tonight on downtown. Tonight they focused on traffic. First off, I thought the segment was not in depth enough. They weren't really saying anything informative. Also I got the feeling they were more against highrise projects, saying that traffic has increased. They even took a flight with APD in their chopper. They asked the pilot if he's noticed more traffic in and around downtown over the past few years. He said, yes. Well duh, Austin is growing. I'd be more shocked to hear that traffic has decreased with the way the city has grown. Also I got the feeling the pilot was speaking more about traffic on I-35, which of course no doubt is affected by downtown's population/development and activities, but I-35 serves not just Austin, but every city from Laredo, Texas to Duluth, Minnesota, and even continues onward in Mexico and Canada with their highway system.

They also interviewed the mayor and talked about how many times a week he actually walks to work. The mayor of course lives downtown at the Austin City Lofts. They set up a camera across the street and recorded cars coming and going from the building. The mayor was seen leaving. Mayor Wynn said he walks to work at least 3 days a week, but drives to work every once in a while when he has errands to run, such as taking the kids to school. In all, they counted 25 cars coming and going from the Austin City Lofts. I forget who they had interviewed, but the guy said "That's 25 more cars in downtown making trips that wouldn't have been there before the building opened." I couldn't believe the stupidity of that comment.

Let's look at the numbers. 25 cars coming and going in one day. The building has 82 units. So let's consider that there's only 2 people living in each unit, only two adults of the age to drive. That gives you a possible 164 cars coming and going, and 246 if there's at least one teenager of the driving age. Instead, there were only 25. That's not too shabby. Walk up and down a suburban neighborhood, or even one here in the city, but not in a truly urban environment and watch to see how many cars come and go from 82 houses. I betcha the number is much higher than 25, in fact may even be triple or even quadruple or more the 82 number, since you'd have to imagine teenager drivers would also have a car. Let's look at that. 82 houses. Two parents with cars. Lets say they have 3 children with cars of the driving age also. That would be as many as 410 car trips a day. Instead, in downtown there's as few as 25.

They interviewed a woman who also had a unit in Austin City Lofts. She said she walks a lot. She said she's saved a lot of money on gas. Just imagine living in a neighborhood dense enough, and not even just dense, but having everything you need within walking distance, or within reach of public transportation, and so convenient that a car would be unnecessary. No car payments, no insurance, no inspection fees, no gas bills and no repairs.
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  #94  
Old Posted Nov 14, 2007, 2:49 PM
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Originally Posted by KevinFromTexas View Post
In all, they counted 25 cars coming and going from the Austin City Lofts. I forget who they had interviewed, but the guy said "That's 25 more cars in downtown making trips that wouldn't have been there before the building opened." I couldn't believe the stupidity of that comment.
I absolutely agree. I wonder if they set him up so he had no other way to respond? Maybe he didn't consider what he was saying? What do they want? A ghost downtown after 5:00PM? Ghost downtowns are scary, not very inviting, and can be an indicator of the business conditions of the city. Your absolutely right, if those 82 units were elsewhere, there would be 82+ cars on the road. Not to mention wider roads, more tunnels to build for water, sewage. More trees to knock down, more sidewalks to pave, more traffic signals. The list goes on... If we want a world class city, then we need a world class downtown. Many of these news people hope to get a break to go to D.C. or NYC for national news and dramatize stuff like this. Those people on FOX 7 news try to dress, makeup, hairstyle and behave like they are living in a metropolitan city, but then they go and report on this growth like it is bad. What do they want, to be reporting for a farm town? Maybe they should move to west Texas somewhere and work there.
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  #95  
Old Posted Nov 14, 2007, 3:07 PM
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What gets me the most is Fox7 of all stations having the audacity to talk that way considering they're the only tv station in Austin with a downtown location. KXAN and their sister station is just on the other side of 19th Street west of Guadalupe, but Fox7 is right in the middle of downtown. What gives?
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  #96  
Old Posted Nov 14, 2007, 3:44 PM
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You gotta wonder what planet these people are from. Since when is having more density in a downtown area a bad thing? Fox would have everyone living up in Pflugerville and driving downtown to work hogging up more highway space.
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  #97  
Old Posted Nov 14, 2007, 4:42 PM
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I would suggest contacting the station with your opinions. Not that they would necessarily give a pooop, but you never know.
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  #98  
Old Posted Nov 16, 2007, 7:14 PM
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I too live downtown and across the street from Whole Foods (it's where I work too). I only drive to pick up my daughter twice a week. Everything else I walk or ride the Dillo or my bike. Since I have a gas guzzler truck just driving twice a week I still have to fill up once a month. Hopefully when I move in a couple years I can move somewhere that I can still walk to the store or take my bike and then pray to god that I can take public transportation on the days that I don't have to pick up my daughter. That'd be nice!
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  #99  
Old Posted Jan 3, 2008, 6:44 PM
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Monarch from 12-29-07:

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  #100  
Old Posted Jan 4, 2008, 7:34 PM
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This has actually become one of my more favorite buildings that has gone up.
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