Harrison Park Development - News & Updates
February 15, 2013 7:38 pm at 7:38 pm #479103
It looks like Columbus might be losing some of the affordability that retains and attracts YP’s. I am hoping my WP landlord is not reading this thread.
Based on? It seems like the prices at some places are high, but I have to think that is, at least in part, due to more demand than supply, and that prices should stabilize or come down some when current/planned projects are completed. Also, let’s face facts, these are high demand areas. If they think they can get these places rented at those prices, and if there is a segment of the population willing to pay, then more power to them. However, Columbus is very affordable on a national scale. It ranks somewhere in the top 20 of affordable cities nationally, including with housing.February 15, 2013 7:39 pm at 7:39 pm #479104
@peter … wow, its only been 3 years since i rented a one bedroom; I guess I didn’t realize prices went up so much (I paid 900/month for Arena Crossing)February 15, 2013 7:41 pm at 7:41 pm #479105
If rents were dropping, I’m sure you’d tell us it’s a bad thing too. ;)
Of course. There is no actual winning.February 15, 2013 7:47 pm at 7:47 pm #479106
They are asking for a 33% raise over a normal luxury one bedroom in other prime locations.
No, that’s dead-on for downtown, arena district, and premium SN apartments. For example: http://www.flatsonvine.com/columbus/flats-on-vine-apartments/
But you’ve got to admit that the Vines is a much better location. If you were the property manager at Vines and this building at Harrison West in an inferior location fills up and gets rents the same as your building wouldn’t you push rents higher?February 15, 2013 7:51 pm at 7:51 pm #479107
I agree that nationally people are renting more and moving back to urban areas creating a situation where rents are rising. This keeps me in business because we buy/develop in apartments at my day job.
But not all cities are going to bear the burden of these changes equally. First you have income growth and job growth:
Last year, the West was the best. The only cities to break the 3 percent increase mark were San Francisco and San Jose, Calif., as well as Austin, Fort Worth and Houston, Texas. The lone surprise on the East Coast was Charlotte, which ended 2012 with a 3.1 percent increase in annual relative job growth from the previous year.
Then the next issue you have is new development. New development acts as sort of a check and balance on existing assets. I’ll give you an example. We are looking at purchasing a property in Austin for about $105k per unit. But you can develop in the area pretty cheap at around $110k per unit. And we know there is a lot of new development in the pipeline. So the new product is essentially acting as a ceiling to what we can do. We cant raise rents as much as we like because then you’d have to compete against brand new and nicer product. And the new developments cant price much higher because they have plenty of new product to compete with. Again it goes back to supply and demand. The demand is high nationally, but the supply is only up the core markets.
Here are number to highlight my point;
21,928 Total Yearly Population Change
1,100 Projected Completions in 2013
5% Completions as Percentage of Population Change
37,434 Total Yearly Population Change
3,500 Projected Completions in 2013
9.4% Completions as Percentage of Population Change
67,230 Total Yearly Population Change
9,000 Projected Completions in 2013
13.4% Completions as Percentage of Population Change
22,327 Total Yearly Population Change
1,600 Projected Completions in 2013
7.2% Completions as Percentage of Population Change
Even Indianapolis is doing a better job at keeping pace.
Here is a current development map for Austin:
It’s probably a little hard to see but the yellow dots are projects currently under construction. There are 62 of them. With another 7 project approved (green). The blue projects are have been submitted and the purple projects are ones that are just proposed with nothing formal submitted yet.
So you can see they are not just building downtown but all over the city. And many of their more suburban developments are just as dense if not more dense and walkable then what we are building downtown. So while they’re building many urban walkable neighborhoods in both urban and suburban areas some of which are also affordable, we are building only a select few projects only in urban areas that only a select few are going to be able to afford.
So our more affordable new projects are ones like 600 Goodale that really aren’t walkable. And I’m glad they’re building 600 Goodale, there needs to be a lot more development in these areas. I just wish they layed it out differently and maybe added a couple of small retail spaces.
Here is a breakdown of a cost of living index for these areas:
100.5 Health Care
95.5 Misc. Goods and Services
106.4 Health Care
97.7 Misc. Goods and Services
100.2 Health Care
96.8 Misc. Goods and Services
As you can see they are all pretty close in terms of the overall index. The biggest difference is the advantage Columbus has in housing. Housing is also one of the largest components of the index. Any movement in the spread on housing and Columbus quickly becomes more expensive.
So in these other markets because of the demand, availability of financing, national investor/developers, etc. you’ll probably get overbuilding at some point. And a few investors/developers will probably get burned. But it works out in the benefit of the city because the result is more affordable housing. Now compare that to here where no one is willing to take the risk and build residential anywhere other than the best locations that will attract the highest rents.
You continue to post all this without any context. I ask again, is Columbus the only city of these with rising rents? What about other costs? Are prices rising faster in Columbus than elsewhere, keeping pace, or rising more slowly? Is Columbus actually losing any real competitive position, or is it merely holding steady relative to other places? Nowhere have I seen those questions answered, and without them, simply posting current COL figures means very little, especially when they show the city already has an overall lower COL than the places you regularly promote.February 15, 2013 7:58 pm at 7:58 pm #479108
wow, its only been 3 years since i rented a one bedroom; I guess I didn’t realize prices went up so much (I paid 900/month for Arena Crossing)
Yup! It has increased dramatically in this area. It is startling even to me.
But you’ve got to admit that the Vines is a much better location. If you were the property manager at Vines and this building at Harrison West in an inferior location fills up and gets rents the same as your building wouldn’t you push rents higher?
Of course I would.
But you’re arguing against something I didn’t actually say. I was refuting the claim that the stated rent was 33% higher than prime locations (it isn’t). I don’t deny that the rent sounds high for that particular location. You have a habit of not actually addressing the things people say, instead addressing what you think they might be saying.February 15, 2013 8:21 pm at 8:21 pm #479109
But you’re arguing against something I didn’t actually say. I was refuting the claim that the stated rent was 33% higher than prime locations (it isn’t). I don’t deny that the rent sounds high for that particular location. You have a habit of not actually addressing the things people say, instead addressing what you think they might be saying.
I seemed to missed where my response was actually arguing with yours. I didn’t disagree with anything you said.
You highlighted that Harrison West rents were in line with better prime locations and didn’t make the distinction. I just highlighted that point. A simple “Yeah, I agree” would have sufficed.February 15, 2013 8:39 pm at 8:39 pm #479110
Sorry, I interpreted your “But, you’ve got to admit…” as arguing with what I said, which I guess that wasn’t the case. No worries, sounds like we’re in agreement all around.March 6, 2013 2:02 am at 2:02 am #479111
Urban LivingMemberMarch 19, 2013 3:56 pm at 3:56 pm #479112
Urban LivingMemberApril 29, 2013 2:30 pm at 2:30 pm #479113
While this building isn’t the flashiest in town, I’m a fan of how it came together. Modern exterior and quite dense for being buried deep in a neighborhood away from commercial corridors. Would love to see the same thing replicated in other parts of town.June 24, 2013 1:23 pm at 1:23 pm #479114
These are looking all done on the outside. A like how this little narrow street in the heart of the neighborhood is now flanked with 3/4 story buildings on each side.June 24, 2013 2:54 pm at 2:54 pm #479115
The floorplans look great. Do you know how fully rented this building is?January 13, 2014 12:08 am at 12:08 am #479116
Wagenbrenner is preparing to move forward with the final phase of their Harrison Park development in Harrison West. 24 townhouse units will be constructed on the lot at the corner of 2nd Ave and Harrison Park Pl.
Plans and an elevation rendering are available in a pdf here, http://harrisonwest.org/wp-content/uploads/2014/01/Harrison%20Park%20Development%2014_0109.pdfJuly 24, 2014 3:23 pm at 3:23 pm #1031193
Jul 24, 2014, 2:24pm EDT
Wagenbrenner sells Harrison Park Apartments to Nebraska investor
Brian R. Ball
Staff reporter – Columbus Business First
Columbus multifamily developer Wagenbrenner Development has sold off a recently minted apartment complex in the Short North’s Harrison West neighborhood to an Omaha, Nebraska-based apartment investor and developer.
READ MORE: http://www.bizjournals.com/columbus/news/2014/07/24/wagenbrenner-sells-harrison-park-apartments-to.html
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