oryzacody.wordpress.com
The project, which will cost at least $5.5 million, will have 23-2t5 apartments in the 900- to 1,200-square-foot range. , will designn the project, while LLC will build it. Work is expected to begib in early 2009 witha 14-month construction period. Sinkovich originally intended the project to have 39hotell rooms, meeting spaces and groundr floor retail. It was to be dubbe d . His construction drawings were mostly complete and the projecr had been cleared for incentives and governmenttax However, his project ran into a problek when the national credit crunch hit.
“Ww had probably gotten to 95% of constructioh documents ready to submit for permit when the bottomj fell out of the financing market for Joey Hagan, principal with Architecture, says. Certain types of projects are more favorablew for bank loansright now, according to Mariaq Lapuente, vice president at ’a commercial real estate division. “Condos have been on our moratoriu list since 2006 and thisyear we’v e extended it to she says. “We definitely look at the cash flow of a propertty andwhether it’s true commercial real We look at the strengthh of the cash flow. Those are much less risky. Multi-family is very stronhg right now.
” Sinkovich’s apartment project will also havetwo 3,750-square-foott commercial bays on the ground floor, each with 20-foot “If someone was to come in and lease the they could legitimately go up and get anothedr 1,875 square feet with a mezzanine,” Sinkovichb says. “They could also go down and pick upanotherf 3,750 square feet in the Slovis & Associates LLC will handle leasin for the commercial space. Downtowb has strong apartment statistics, accordinh to Memphis’ third quarter MarketView report. Apartments Downtown builty before 1984 hada 95.5% occupancy while apartments built from 1985-19921 had a 95.
9% occupancy rate and new construction had a 94.6 occupancy rate. This compared favorably with Memphis’ overalpl 90.5% occupancy rate for apartments. Downtow n also commanded the highest rentas with old construction rentingfor $0.85 per square 1980’s construction renting for $1.01 per square foot and new constructiomn renting for $1.06 per square foot. The overall Memphias market averaged $0.73 per squarw foot in rents. Lapuente stresses that getting a loan is abouyt more thanjust numbers. “For us, it’s about she says.
“If the relationshi p is there, the credit is I just want to make sure that people know that because a lotof that’s not the message that medias is putting forward.” There are severao other apartment projects being developed currently. Court Square Centefr LLC recently completed renovation ofthe 24-apartmenrt Lincoln American Tower on Main Street, whicg it is currently leasing.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment