COMMENT OF THE DAY: HOW CLOSE ARE THOSE NEW APARTMENT COMPLEXES? “I wonder how much the apartment supply in the south areas (below the medical center and rice u) affect the apartment supply along Buffalo Bayou, Midtown, Montrose, and Upper Kirby? From the site development group at my office, they are telling me that the apartment market will heat up if the housing slump holds or gets worse. Right now developers are scouring for new sites for apartment complexes if they haven’t already.” [kjb434, commenting on Comment of the Day: Inner Loop Rents, Hard and High]
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I guess a thing to add to that is that the inner loop is a big area. On top of that most people when they say inner loop are really referring to a specific area. I seems the inner loop in conversation is SH 288 and I-45 (north freeway) and everything to the west to Loop 610. Most people forget the other half of the inner loop.
Don’t count on any new projects, construction lending is non-existent and cap rates are moving upward. Developers are searching for additional equity to convert their construction loans to perm on new product in lease up now.
Really,
The engineering firm I work for just was selected to move forward on site designed for several apartment projects in the metroplex. San Antonio will be prime for new apartments near it’s Texas A&M campus which just got approved to spend $40 million to expand the campus. The campus will still have no student housing which will make the need for non-existent apartments and other supporting development necessary.
The stable well run companies can get access to financing. Developers that have not leveraged to much will not find it to difficult to move forward.
Finger companies is underway with an apartment complex at the corner of Dallas and Waugh (the Whole Foods is a part of it).
Financing is available, it’s just not pouring out to every Tom, Dick, and Harry that asks for it.
good points and I’m certainly glad to hear that but I will stand by my comments, more equity and recourse is required and the vast majority of developers (even the Finger’s) are focused on their exsisting product and limiting developement to sites they already own as raw land does not cash flow. Land is not trading.