19th & Boston Lofts

[SXSW]

I've followed the construction of these new lofts at 19th and Boston next to the MV trail for the past several months but the project seems to have stalled.  Does anyone have any information on when they are going to finish and how much they cost?  I walked in one yesterday and the views from the third floor office/patio are AMAZING looking toward downtown.  We need more projects like this in that area.

[carltonplace]

Stalled...I thought they were almost done. I noticed sod was down when I ran down the trail on Friday. 

[SXSW]

The exterior appears to be finished, but the interiors are just framed up.  I walked in and was blown away by the view on the third floor.  Being so close to downtown, near the places at 18th/Boston, and literally right next to the MV trail are big selling points, have they had trouble selling or did the developer/contractor get into financial trouble? 

[bokworker]

SXSW, I don't know the developers of this project or have any inside information but the primary issue that they have to be running into, along with every other developer of loft/condo projects is that Fannie Mae and Freddie Mac, the 2 main sources of mortgages these days, have severely tightened their lending standards for these types of units. Not only are they requiring bigger down payments but before FNM or FRE will even look at a loan on a project like this a certain percentage (like 51%) have to already be sold (and closed) and owner occupied (no investor owned). Hence, over half of the units effectively have to be cash transactions before a normal 20% down 30 year fixed mortgage can even be done. This puts the developers in a very difficult situation. On top of that, this tightening of lending standards is applicable nationwide. It is being driven by the huge losses FNM and FRE have taken on condo projects in Vegas, Phoenix, Miami, etc. and even though these markets have nothing to do with is going on here, we are paying a price.

Maybe the banks with the development loans will step in and offer long term financing to help these guys out....

[nathanm]

before FNM or FRE will even look at a loan on a project like this a certain percentage (like 51%) have to already be sold (and closed) and owner occupied (no investor owned).

Talk about throwing out the baby with the bathwater.