And the hits keep on coming: 119 Downtown

[Renaissance]

Any condo development is going to have at least a 50% pre-sell requirement before financing is available.  I think 60% is becoming standard now.

[rdj]

River City Development has met with FHA and plan on the units being FHA eligible, meaning you could purchase the units with very little money down.  However, the units will average ~$300k, but some will be less and others will be three times that amount..  I understand RCD is going to put about a $1mm into the project up front and hope they sell.  They are constructing a model to show prospective buyers and won't start development until they have 40-45 pre-sold.

Floyd is correct, the new Fannie Mae guidelines will not consider a loan to purchase a condo "conforming" until a certain percentage of the units in a building are sold.  This means that the mass majority of lenders will not make a traditional mortgage loan to a buyer until the condo development is full.

This scenario is playing out on Cherry Street & the lofts at 18th & Boston.  It affects any multi-family complex with for sale units.

The way a project like this gets financed is that the developer signs a contract on the building and pays an option.  He has a negotiated time frame to sell the idea to enough buyers so they can get financing.  Once he has the right percentage pre-sold he takes the building and the contracts to a lender and they take both as collateral on the loan.

[TheTed]

They're doing at least one thing better than previous downtown residential conversions: advertising. All the first-floor windows have an advertising wrap on them, and there's a pretty big banner (several floors high) on the upper levels. Plus I've seen some signs out on the sidewalk out front.

I previously complained how none of our conversions make it obvious there's progress, like you see in other cities with giant 8-story high banner proclaiming new lofts coming. These people are doing it right.

[Renaissance]

They're doing at least one thing better than previous downtown residential conversions: advertising. All the first-floor windows have an advertising wrap on them, and there's a pretty big banner (several floors high) on the upper levels. Plus I've seen some signs out on the sidewalk out front.

I previously complained how none of our conversions make it obvious there's progress, like you see in other cities with giant 8-story high banner proclaiming new lofts coming. These people are doing it right.

I saw that this morning going through downtown.  It looks exciting.

[sgrizzle]

Yes, I enjoy their lack of subtlety.

[AngieB]

I have friends that have reserved their condo. I'll ask what they've been told about completion of the project.

[AngieB]

Talked to my friend tonight about their condo. Their looking at about 18 months until completion.

[SXSW]

The model unit is now open, looks very nice:



http://www.tulsaworld.com/business/article.aspx?subjectid=32&articleid=20100909_32_E1_CUTLIN709503

[ZYX]

I'm sad to report that this projects is dead.

http://www.tulsaworld.com/business/article.aspx?subjectid=32&articleid=20110713_32_E1_CUTLIN903302&allcom=1

It would have been an amazing project. I desperately hope this building does not see the wrecking ball.

[sgrizzle]

I'm sad to report that this projects is dead.

http://www.tulsaworld.com/business/article.aspx?subjectid=32&articleid=20110713_32_E1_CUTLIN903302&allcom=1

It would have been an amazing project. I desperately hope this building does not see the wrecking ball.

They took the signs down a few weeks ago. Price was too high for the market right now.

[BKDotCom]

This is a large bummer.

¿What's the status with the Enterprise building?

[carltonplace]

We need lots more affordable housing downtown. I think rents under $1000 per month would occupy very quickly.

[Red Arrow]

We need lots more affordable housing downtown. I think rents under $1000 per month would occupy very quickly.

I agree with the concept.  Is it possible/probable to renovate or build new something someone would want to rent for $1000/mo?  Until someone could truly live downtown without a car, that number may need to be even a bit lower.

[TheArtist]

  I keep wondering if someone could take one of those old buildings and put in the basics on a few of the floors to start with. All I would need is bare floor and ceilings, I don't even need sheetrock on the walls just outlets here and there. A bathroom with the cheapest fixtures (can upgrade and add my own as I can afford them) bare essentials kitchen... then let me do the rest.  Get those rented for a cheap price then set a few general ground rules for what you can do to remodel them.  Then work on selling the other floors as higher priced, more finished out models once you get some income.  

I can imagine that there would be some big expenses at first so the lower price points may not work out (electrical and plumbing), but still it seems as though there should be some way to make a go of it bit by bit.  Get the ground floor rented out, you could even do the second and third floors without an elevator to start with.  Give me a good deal and I will finish out the apartment myself and dont care about walking up a few stairs. Get a little income coming in, get a loan for phase2 and use the money from the first floors to get a few more floors done, then build up to phase3, then upgrade the first parts later and so on.

[Conan71]

Artist, all great ideas.  Unfortunately, barely finished buildings scare bankers.  They want something that if they have to take it back from the developer that they can turn around in a reasonable amount of time.  

This brings to mind a question after Grizzle made the comment that the units are overpriced for the market right now.  Is there a certain price threshold that someone will think: "For $xxxx a month, I'd rather own a small home in midtown than deal with the 'inconvenience' of living in the middle of downtown"?  Are we really sure it's a pricing vs. market issue.  Are the price ranges really appealing to a demographic which wants to live in a re-purposed building in the first place?

Do you need the other livable amenities like a grocery store before you can entice more people to live in the center of downtown?

What happens now to the people who had deposits?  I would assume they get those back, but now what are their other options in downtown?

Just random thoughts I thought I'd throw out for discussion.  For $300 to $900K, I personally would have no interest in living there.  For that kind of money, I want some elbow room.