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Mimosa Terrace: Proposed 7-Story Condo Building


Urbannizer

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On 1/19/2021 at 6:58 PM, Houston19514 said:

I also don't think Houston's prices of condos vs single-family are particularly unusual compared to other cities.  It is almost certainly hyperbole to say that an apartment being more expensive (per square foot) than a standalone house would be unthinkable in other (actually dense) cities. For example, apartments selling for higher prices per square foot than nearby single-family residences in Chicago is clearly not unthinkable.

 

Assuming steel-and-brick construction is $400/sf and stick-built SFH construction is $200/sf, you can calculate the breakeven floor-area-ratio for a given land value.  For condo FAR of 4.0 and SFH FAR of 1.0, land values above $270/sf would favor condo construction. There are very few places in Houston where dirt sells for that much.

Having lived in mid-rise condo buildings in a neighborhood in an (actually dense) city where that type of construction is typical, I can tell you I couldn't have afforded the same square footage in a standalone house.

FWIW, I love these kinds of buildings (4-6 story, <20 apartments), but staffing these kinds of buildings gets very expensive on a per-apartment basis. When I lived in 5-unit building w/ 24-hour doorman coverage the condo fees were brutal.

 

 

Edited by Angostura
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21 hours ago, Angostura said:

FWIW, I love these kinds of buildings (4-6 story, <20 apartments), but staffing these kinds of buildings gets very expensive on a per-apartment basis. When I lived in 5-unit building w/ 24-hour doorman coverage the condo fees were brutal.

 

 

Good point, and one condo buyers are becoming aware of. When we were condo shopping in 2018, our realtor (luckily, a close friend & condo expert himself) educated us on this. How a small building either lacks amenities, or they cost a fortune. How big buildings, maybe 100+ units, have issues of their own. We hit the sweet spot with 69 units. Large enough to have full amenities, not so big as to have traffic jams at the entrance.

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On 4/6/2021 at 1:47 PM, Urbannizer said:

8 offers (not sure on the # of under contract vs. sold)

Summer start date

18-month construction timeline 

30 percent sold now. 8 offers implied 50 percent sold. Either they’re going backwards or use some creative language in their marketing before.

76EF9A82-0D46-441F-BD30-6C62413AEEC5.jpeg

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3 minutes ago, Houston19514 said:

Offers is not the same as "sold". 

Offers mean nothing. You can offer $5.00 for a unit. Reporting this metric is misleading and meaningless…that was my point. They’ve been trying to sell this building for about 5 years now. It’s not going well.

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Just now, db650 said:

Offers mean nothing. You can offer $5.00 for a unit. Reporting this metric is misleading and meaningless…that was my point. They’ve been trying to sell this building for about 5 years now. It’s not going well.

I don't see it as misleading at all. And while not as meaningful as "sales", I don't think it's fair to say it's meaningless.  It's an indication of traffic and interest.

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1 minute ago, Houston19514 said:

I don't see it as misleading at all. And while not as meaningful as "sales", I don't think it's fair to say it's meaningless.  It's an indication of traffic and interest.

At one point, the builder bought an entire floor in this building. I wonder what percentage of the 30% is bought by the builder. Developers play all kind of games to show perceived interested in their properties, and "offers" is one of them. Offers don't indicate any interest because we don't know how serious they are. Why would you report an offer that ultimately gets rejected or doesn't go to contract? It's because you don't have actual sales under contract.

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1 minute ago, db650 said:

At one point, the builder bought an entire floor in this building. I wonder what percentage of the 30% is bought by the builder. Developers play all kind of games to show perceived interested in their properties, and "offers" is one of them. Offers don't indicate any interest because we don't know how serious they are. Why would you report an offer that ultimately gets rejected or doesn't go to contract? It's because you don't have actual sales under contract.

Of course.  Developers tell the story they can tell. As you suggested, "sales" don't tell us much more because we don't know how real they are . . .  All promotional statements (which is the same as saying all statements) made by all real estate developers should be taken with a grain of salt.

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