Local Entrepreneurial News
Lifestyle Communities Ltd. will spend $25 million to build 130 apartments and 76 condos on 2.8 acres along South Front Street between West Town and Rich streets.
The project will target a market of young, professional workers with condos selling for less than $200,000 on average and rent beginning at $750 a month.
Launched in August 2010, TheMetropreneur.com is a local online resource devoted to small business development and entrepreneurship. Its aim is to tell the stories of Central Ohio’s business community, foster regional economic development and assist entrepreneurs with its resource-heavy focus. Click here to visit TheMetropreneur.com.
RSS
Twitter
Facebook
YouTube
I’d say that the city got the short end in this deal…
For those keeping track at home…
$200,000 x 200 condos = $40,000,000
:shock:
Essentially, the city gave away land to a developer so they could pocket $15 million and have a free 130 unit apartment complex to run. I’m thinking we could have gotten more than $3 million for that land, no?
Is the $3 million included in the $25 million?
Overall, though, I think those numbers aren’t all that obscene. You have to figure in the time value of money and realize that $3 million now might well be better than $5 million down the road. Also, more importantly … when was the last time a construction project actually came in on budget? Wait until the actual costs are tallied to pass judgment here.
I’m also curious if the $25 million just includes construction costs or includes marketing, a sales agent on the premises, etc.
Idunno gram. Lifestyles is gonna have to work pretty hard to screw this one up. Keep in mind, the $40 million is just revenue from the condo sales! They’ll have a free ongoing revenue stream from the rental properties, and I’m sure they’ll get another revenue stream by managing the condo association. Let’s also not forget the probable upgrades (parking, kitchens, flooring) that will drive up the sales prices and allow them to pocket a little extra change.
That sounds like a pretty healthy business proposition, even if the 1-2 full time sales employees, $3 million land cost, and time value of money are considered.
And another thing…according to the Auditor’s site…the 6 parcels that make up this site are being taxed at a value $5.1 million.
Now we’re talkin’!
Just add a couple floors on top, a retail component, a some work/live condos and they’ve got a real downtown project!
Even a small retail space would be nice. Carlyle’s has just one small space for Cornerstone, but it adds a lot to the vibe and my coffee options.
Even a small retail space would be nice. Carlyle’s has just one small space for Cornerstone, but it adds a lot to the vibe and my coffee options.
I really don’t think you can have too many local coffee shops. I got coffee at the Carlye’s Watch one and thought it was great. With 200 condos on top, I would open a coffee shop at River South in a heartbeat. You would have to try and lose money.
well, you do have to figure that it may be worthwhile to get the project built sooner rather than later for the City. They will make more money on taxes in the long term once 40 mil worth of condos are sold… even if they are tax abated for a few years at the beginning. Holding onto a parcel and hoping someone coughs up a few mil more probably isn’t the best long term strategy.
Owning and leasing an apartment complex is hardly “free money.” You expose yourself to a lot of additional ongoing expenses in addition to ongoing revenues. There are definitely apartment complexes out there that lose money. That will particularly be the case if it turns out these aren’t as popular as LC is hoping, meaning they fail to get $750-$990 for the units. There was a time not so long ago when lease rates that high were all but unheard-of in Columbus for apartments; you could get a single-family rental house in a decent neighborhood for that much, very likely 3 or even 4 bedrooms.
I do agree. I think they did fairly well. Just not making out like bandits.
Mm, fair point. However, after LC sinks $25 million+ into them, they’ll be taxed at much higher than that (or at least 10 years down the line, they will be, and one might as well get the clock started). Which I’m guessing has at least a little bit to do with why the city was willing to let them go at a slight loss. I’ll admit, though, that I didn’t know that they were appraised for that much. In fact, I’m surprised that they were. They have location in the sense of proximity to white-collar office jobs, but as has been pointed out here in the past, neither the central business district nor RiverSouth offer a resident much between the hours of 5 p.m. and 9 a.m.
I’m gonna have to backpedal a bit on this one. This latest article says that there will be 200 condos and 130 apartments, but the original Dispatch article says 76 condos and 130 apartments. I’m thinking the Dispatch is probably right, and there will be about 200 total units (apts and condos). That makes the numbers sound closer (only about $15 mil in condo sales revenue).
If the new article is right, then I’ll stand by my statements that the city is getting worked over in this deal.
While I’m not poo-pooing the density and I do think these will look pretty good when all is said and done I have a feeling they won’t compare with these.
BTW, these are from Jersey City, which just goes to show that 3 stories is not at all out of place considering how dense the city is (16,045 people per sq mi vs our 3,384 per sq mi, though that is skewed by including plenty of sprawl within city limits so I don’t know the true density of our urban territory).
I wish these units in RiverSouth had walk up front doors like the beautiful brownstones in those pics. From the renderings, it looks like they’ll be accessible from the internal blocks, not Front, Town, or Rich. Hopefully the I’m just misinterpreting the preliminary renderings though.
If the new article is right, then I’ll stand by my statements that the city is getting worked over in this deal.
200 total units is correct, with 130 being apartments….and i don’t think they will have any trouble renting these out for $750 to $990. in fact, i think they will rent out quite quickly. $990 for a 2 bedroom is a fickin steal, even if riversouth is in the early stages or redevelopment. i think things will pick up in the next few years, especially with the bicentinnial coming up.
City to invest $5 million to start new neighborhood in Downtown RiverSouth
(Columbus) In his 2008 State of the City speech, Mayor Michael B. Coleman announced that Lifestyle Communities would break ground on more than 200 new apartments and condos along Front Street between Town and Rich streets. The Mayor is asking City Council to approve legislation tonight to invest more than $5 million in bond proceeds for public improvements to the area, including updated infrastructure like brick sidewalks and new granite curbs, that will beautify the area.
“As more apartments and condos are built downtown, more affordable options are needed to attract more renters and buyers, especially young professionals,†Mayor Coleman said. “When it comes to building for the young and talented, Lifestyle Communities gets it and they are going to build a neighborhood in our RiverSouth area to enhance our Downtown housing options.â€Â
The $25 million private construction project will create a new neighborhood replacing four empty surface parking lots along Front Street between Town and Rich streets. Lifestyle Communities will bring both housing and on-site parking to the area, with 130 apartments starting from $750 to $990, and 76 condos selling between $125,000 and $250,000.
Recent public and private investments have made RiverSouth an emerging neighborhood. Construction for the Main Street Bridge has been under way for several years, and the Lazarus Building has been renovated into an award winning “green” office space and is 99% leased. The Scioto Mile Park is set to begin construction in May and the municipal garage at the corner of Front and Rich streets will be completed in the spring of 2009. Lifestyle Communities will move their corporate headquarters downtown in June.
In addition the City will begin the next phase of converting streets from 1-way to 2-way this summer, with completion expected in 2009. Road Conversions around RiverSouth will include:
- Front Street (Broad to Rich)
- Ludlow Street (Town to Rich)
- Wall Street (Town to Rich)
- Rich Street (High to Ludlow)
The City of Columbus is helping lead the implementation of the Downtown Business Plan with the Columbus Downtown Development Corporation and local businesses. 2007 marks the fifth year of the 10-year plan to bring new investment, energy and activity into downtown. The total new investment in downtown since 2000 is estimated at $2.19 billion, with $711 million in public funding helping leverage $1.48 billion in private investment. This includes projects proposed, under construction, or built since 2000.
Lifestyle Communities will break ground on their new River South community downtown on June 13, 2008. Located on 2.8 acres along South Front Street between West Town and Rich streets, the new project is estimated to open in late 2009 and will include 210 residential units. Lifestyle Communities hopes to target young buyers looking for moderately priced housing in an urban setting.
“The beauty of downtown is that downtown is the amenity†says Michael DeAscentis Jr., CEO of Lifestyle Communities. “There’s absolutely pent-up demand for this young demographic. It’s a product at a price that they can affordâ€Â.
The apartments will include one and two bedroom units, with rent in the $800′s. Condominiums will start at $125,000, and the average base price of units will be in the low $200,000′s. The residential development will include enclosed courtyards, a fitness center, rooftop terraces and outdoor green space, as well as attached parking for all units. Lifestyle Communities plans to spend $30 million to build the project.
The new Lifestyle Communities project will be built on land formerly occupied by the old downtown Lazarus parking lots. This development is a part of the revitalization efforts in the River South District, bringing moderately priced housing to Downtown Columbus. As a part of the City’s efforts, a new 773-space parking garage is being constructed, Front Street will become a two-way street, and a pedestrian-friendly environment is being created along Wall Street.
“This is a cooperative effort with the City and Columbus Downtown Development Corporation to bring affordable housing to the downtown,†says DeAscentis. “This project is being realized because of the commitment of Mayor Coleman to bring housing to the downtown, and is only possible because of the dedication and assistance of the staffs of Public Service under Director Mark Kelsy, Public Utilities under Director Tatyana Arsh, development under Boyce Safford Reese, and CDDC under the direction of Guy Worley.â€Â
http://www.lifestylecommunities.com/river-south.php
I think developers and the city are missing a cruicial piece of the downtown living puzzel. Grocery Stores !!! When you live downtown, you can go to a restaurant, a bar, a major sporting event or a concert – but you can’t buy groceries. You have to go to the Kroger in the BD or Giant Eagle up in Vic Village.
Yes. A whole mile to a grocery store! How insane! ;)
Seriously though, when the demand is strong enough, a grocery store will open.
This isn’t a chicken & egg debate. PEOPLE have to come first before a grocery retail spot can operate successfully. It doesn’t have much to do with housing developers.
I think Brewmaster’s writeup handles this one best – and it’s over a year old, so if things have changed since then, they’ve only gotten better.
that is the Riffe Center in the picture…i believe the LaVeque is rendered in the background there as well, so i imagine that picture is facing North. Looks like it might a nice lil addition to downtown, still wouldnt want to live RIGHT downtown, nothing else but condos or apartments, there is no quick access to a grocery or other essential shopping. Heck, it’s hard to find a cup of coffee on a Sunday morning downtown. Keep the downtown development coming, Columbus, you’re on a roll.
I would be wary of all those people from Second Life hanging out in front.
Also, it’s a VERY short walk to the Brewery District Kroger’s from this location, and if nothing else, there’s a Starbucks there.
I think they said that a coffee shop might be going in right next to these…..I might be wrong. Either way, this will be right next to a great park and within 1 mile north/south you can get just about anything you want. Biking 1 mile takes about 5 min. and you can burn that doughnut off before you buy it :)
Also, does anyone have any of the floorplans for these?
Agreed – despite the drawbacks of living downtown – Columbus is on a roll. I think it will be interesting to watch how increased energy costs affects downtown living…..