Houston19514 Posted February 1, 2013 Share Posted February 1, 2013 Agree 100%. I recall there was a project that was supposed to go up on gray near la branch (seems to have stalled, but I saw a backhoe in there the other day where it looked like they were updating the board on the northeast corner of the lot), they were going to put their workout facility and some other amenities on the ground floor so that they could easily swap these out with ground floor retail when the time was right. It's a good way to have the option later on. I think though, the question is still a good one, even if it's just two 3000sqft spaces facing the park, 6000sqft total, the equivalent of 4 or 5 apartments, would it break the model of this complex? I doubt it, but if they think it will break the model, then they won't even consider it. Let's take a look at the numbers. i think apartments in these new developments are averaging about 800 square foot per apartment. This building plans 300 square units; that gives us 240,000 rentable square feet. 6,000 square feet is 2 1/2% of your total. You've just put that portion of your planned return into a very different risk pool and different rental market. (And that doesn't even address the difference in building and operating costs.) I don't know, but It seems like that could indeed break the financial model. Link to comment Share on other sites More sharing options...
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