JWW Posted June 23, 2008 Share Posted June 23, 2008 Many, many of the threads contain questions or comments that are valuable to countless readers but are not seen as the topics are project-specific which can be ignored inadvertently by a curious member. This is a topic/post regarding development and real estate and hopefully can inform members about important development/real estate concepts and rules-of-thumb. If you have questions about "Class A vs Class B real estate" or capital structuring of a development or buildout questions, anything not necessarily project-specific, please post here and hopefully our informed members can throw some great information into the discussion. Quote Link to comment Share on other sites More sharing options...
JWW Posted June 23, 2008 Author Share Posted June 23, 2008 (edited) I'll throw out a question posted before under another post - Anyone have insight into the facade-hanging process of a building? I have noticed that for even the same materials, different buildings of the same use hang their facades at different times and in different procedures. Many times the process seems to be erratic with regard to which glass panels are hung at which time on a glass-exterior building as well as some buildings wait to be topped-off before hanging the facade while others start much earlier (One Park Place). Any insights?Also, with regards to recent questions about Class of commercial real estate - this link has a short definition of the classes. http://officespace.com/terms.cfm Whoever wrote a more thorough explanation a few months ago under a different thread, could you post it here? Edited June 23, 2008 by JWW Quote Link to comment Share on other sites More sharing options...
lockmat Posted July 14, 2008 Share Posted July 14, 2008 Does anyone know if variance requests are available online? Watching the Planning Commission meeting, it's obvious they are accessible to the public, but how?Thanks. Quote Link to comment Share on other sites More sharing options...
OkieEric Posted July 14, 2008 Share Posted July 14, 2008 (edited) Does anyone know if variance requests are available online? Watching the Planning Commission meeting, it's obvious they are accessible to the public, but how?Thanks.You can check the planning commission online at this link - it allows you to download the meeting agendas and see info regarding each variance request. Someone posted the link a few months back, and I've been checking it weekly sinceedit: you have to click on the calendar and then a specific date, then scroll to the bottom to download the agenda for that particular meeting Edited July 14, 2008 by OkieEric Quote Link to comment Share on other sites More sharing options...
JWW Posted July 14, 2008 Author Share Posted July 14, 2008 This applies to anyone interested in Hotel ZaZa Houston or even Dallas, hotel development, redevelopment of existing structures (hotels), innerloop Houston development, or just nicer Houston hotels..... ULI is putting on an event Wednesday that members of ULI or non members can attend for 20 or 25 dollars. Think it includes food, as well. President of Hotel ZaZa is coming from Dallas to Houston to talk about the obstacles and process of the development of Hotel ZaZa Houston, including the permitting and financing of the project from the Warwick Hotel. Should be doing a Q and A as well as leading everyone on a tour of the hotel from his end. Should be informative and would be good to support events like this - it'd be great to get Marriott to do something like this for the new Ritz someday.http://www.uli-houston.org/newsevents/news...s_YL_080716.htmDeadline to sign up is today - post if you are going to go and maybe we'll all meet at the event Quote Link to comment Share on other sites More sharing options...
lockmat Posted July 15, 2008 Share Posted July 15, 2008 http://www.city-journal.org/2008/bc0418cl.htmlSeveral speakers did offer salutary critiques of the nonprofit U.S. Green Building Council Quote Link to comment Share on other sites More sharing options...
JWW Posted July 15, 2008 Author Share Posted July 15, 2008 (edited) http://www.city-journal.org/2008/bc0418cl.htmlSo buildings made of masonry are actually better at reducing energy?For those insulatory reasons, I have always presumed so.. Edited July 15, 2008 by JWW Quote Link to comment Share on other sites More sharing options...
TheNiche Posted July 15, 2008 Share Posted July 15, 2008 Also, with regards to recent questions about Class of commercial real estate - this link has a short definition of the classes. http://officespace.com/terms.cfm Whoever wrote a more thorough explanation a few months ago under a different thread, could you post it here?Sorry, but I don't remember which thread that was. The jist of it is that Classes are often subjective, dependent not only upon objective physical criteria, but upon location (intersection, submarket, city). Quote Link to comment Share on other sites More sharing options...
swtsig Posted July 15, 2008 Share Posted July 15, 2008 i figured this was as good a thread to post this in....talking to someone very much in the know here in houston, it was mentioned that according to several large mortgage lenders in town we will be "surprised" at the number of projects proposed/planned here in houston that DONT get off the ground. no other specifics, other than them saying that if it isn't already being built there's a solid chance it never will be... at least not in these economics times. lenders and financing are extremely tight right now and apparently a lot of projects are having a hard time securing adequate monies to justify breaking ground.take it for what it's worth. Quote Link to comment Share on other sites More sharing options...
lockmat Posted July 15, 2008 Share Posted July 15, 2008 i figured this was as good a thread to post this in....talking to someone very much in the know here in houston, it was mentioned that according to several large mortgage lenders in town we will be "surprised" at the number of projects proposed/planned here in houston that DONT get off the ground. no other specifics, other than them saying that if it isn't already being built there's a solid chance it never will be... at least not in these economics times. lenders and financing are extremely tight right now and apparently a lot of projects are having a hard time securing adequate monies to justify breaking ground.take it for what it's worth.I'm gonna shoot myself in the head...so long HAIF Quote Link to comment Share on other sites More sharing options...
TheNiche Posted July 15, 2008 Share Posted July 15, 2008 i figured this was as good a thread to post this in....talking to someone very much in the know here in houston, it was mentioned that according to several large mortgage lenders in town we will be "surprised" at the number of projects proposed/planned here in houston that DONT get off the ground. no other specifics, other than them saying that if it isn't already being built there's a solid chance it never will be... at least not in these economics times. lenders and financing are extremely tight right now and apparently a lot of projects are having a hard time securing adequate monies to justify breaking ground.take it for what it's worth.There situation as it pertains to financing big real estate deals is has been really bad for about nine months now. It isn't that every development proposed is now doomed. It means that most or all will be delayed and that several sites may change ownership. However, the big projects (BLVD Place, River Oaks District, High Street, Regent Square, Archstone Smith - Washington Ave., Camden's Superblock, and Finger - Waugh/Montrose) will happen in one form or another, by one developer or another, and at some point in time--or another. Quote Link to comment Share on other sites More sharing options...
totheskies Posted July 15, 2008 Share Posted July 15, 2008 (edited) I'm curious about inner loop development....How many new residential units have been built in the inner loop since 2000? Are there any reliable data sources that could help me figure it out??I suspect that the inner loop has been densifying significantly over the past few years. Also, do you think the recession will slow down central core development, or speed it up?? Edited July 15, 2008 by totheskies Quote Link to comment Share on other sites More sharing options...
swtsig Posted July 15, 2008 Share Posted July 15, 2008 (edited) There situation as it pertains to financing big real estate deals is has been really bad for about nine months now. It isn't that every development proposed is now doomed. It means that most or all will be delayed and that several sites may change ownership. However, the big projects (BLVD Place, River Oaks District, High Street, Regent Square, Archstone Smith - Washington Ave., Camden's Superblock, and Finger - Waugh/Montrose) will happen in one form or another, by one developer or another, and at some point in time--or another.yeah, i definitely wasn't trying to imply that every project not yet off the ground is dead in the water, only that folks should expect some delays (some of which may be serious delays) and to not be surprised if a handful of projects (likely none of the aforementioned ones) get scratched completely. the number of lenders willing/able to provide financing for some of these more speculative projects has dwindled drastically compared to only a year ago. Edited July 15, 2008 by swtsig Quote Link to comment Share on other sites More sharing options...
TheNiche Posted July 15, 2008 Share Posted July 15, 2008 (edited) I'm curious about inner loop development....How many new residential units have been built in the inner loop since 2000? Are there any reliable data sources that could help me figure it out??16,685 apartment units in 65 projects; 93.32% of these (15,570) are physically occupied units.I suspect that the inner loop has been densifying significantly over the past few years.There are 8,190 units in 27 projects presently under construction, ranging from site work to those that are partially completed and already leasing units. These will deliver to market between now and about 20 months from now (early 2010)--but more of them sooner than later.What that will mean is that about 33% of new supply over a ten-year period will have delivered in the last 20% of years being examined. That is not only a continuation of what had already been a strong trend, but an acceleration.Also, do you think the recession will slow down central core development, or speed it up??The figures I just showed you will hopefully be sufficient to keep lockmat from killing himself (yet) but most of the projects currently under construction reflect a pre-recessionary economy in which financing was (too) easy to come by.I believe that the recent pull-back is well deserved but is an overreaction and that it is likely that we will experience a very oversupplied apartment market in 2009 which will begin tightening up again in late 2010 as the pace of new deliveries slows to reflect the capital market conditions from over the last three quarters.Developers presently evaluating new deals in Houston are making projections based upon two to three years of pre-development and construction, meaning that somebody that can get a deal off the ground will deliver in early-to-mid 2011. The tenacious (or lucky) contrarians able to pull this off will probably do quite well for themselves. The window of opportunity may be a narrow one, however, and once people realize how good the fundamentals are looking, we'll probably see another burst of construction.So the most precise answer is that you ought to expect more of the same: cyclicality. A recession is such a short-term phenomenon compared to the time it takes to develop real estate that it may factor into the timing and extent of peaks and troughs, but it has basically no effect on the broader trend.EDIT: The answer is very different for owner-occupied housing. I think that you probably won't see very many more large condo projects (even though they never really comprised a very large market share in the first place) and that you certainly won't see any condo conversion activity. Townhome construction will continue at a slower pace, but I do tend to think that that may have been permanently impaired by the mortgage crisis. The proliferation of McMansions will probably continue, albeit not necessarily in the traditional areas, which have largely been built out. You'll see a lot more in neighborhoods just outside the loop, such as Meyerland, Garden Oaks, Garden Villas, and Westbury, as well as more creeping into East End neighborhoods like Forest Hill, and Houston Country Club. Edited July 15, 2008 by TheNiche Quote Link to comment Share on other sites More sharing options...
JWW Posted July 16, 2008 Author Share Posted July 16, 2008 16,685 apartment units in 65 projects; 93.32% of these (15,570) are physically occupied units.There are 8,190 units in 27 projects presently under construction, ranging from site work to those that are partially completed and already leasing units. These will deliver to market between now and about 20 months from now (early 2010)--but more of them sooner than later.What that will mean is that about 33% of new supply over a ten-year period will have delivered in the last 20% of years being examined. That is not only a continuation of what had already been a strong trend, but an acceleration.Niche, where do you get your market data? Quote Link to comment Share on other sites More sharing options...
TheNiche Posted July 16, 2008 Share Posted July 16, 2008 (edited) Niche, where do you get your market data?Primarily from O'Connor & Associates. Every bit of reasoned speculation beyond that is my own, albeit based upon many different sources and personal experience. Edited July 16, 2008 by TheNiche Quote Link to comment Share on other sites More sharing options...
JWW Posted July 23, 2008 Author Share Posted July 23, 2008 Posting this in the Sonoma and Development and real estate threads , but we can we have a really brief conversation on what everyone knows or feels "ground-breaking" is, including on a site where there was a previous structure? Quote Link to comment Share on other sites More sharing options...
lockmat Posted August 1, 2008 Share Posted August 1, 2008 How does a developer choose the final design of a building?Do they have a general idea and then pitch it to the architect? I'm assuming they give them square footage and other specs to move them along.Anyone know the process? Quote Link to comment Share on other sites More sharing options...
TheNiche Posted August 1, 2008 Share Posted August 1, 2008 How does a developer choose the final design of a building?Do they have a general idea and then pitch it to the architect? I'm assuming they give them square footage and other specs to move them along.Anyone know the process?In most cities it has more to do with satisfying CCRs (Codes, Covenants & Restrictions) than anything else, but still managing to achieve the right amount of product and at the right cost so that the deal makes sense. Houston is a little different because we're so lasseiz faire about things. But even here, we often have strict deed restrictions, not only in subdivisions and master planned communities, but in business and industrial parks.The design characteristics also depend upon the end user and the characteristics of that user.Generally, speaking, a developer will provide some basic input then see what the architect comes up with, then provide a couple more iterations of feedback to refine the concept. The developer will care that the project is generally marketable and more attractive than the majority of competitors, but at the same time, they aren't looking to go for broke just to make some kind of aesthetic statement...nor are they generally willing to budget a tremendous amount of time into the part of the building that is only skin-deep. It's about the bottom line. Quote Link to comment Share on other sites More sharing options...
JWW Posted January 10, 2009 Author Share Posted January 10, 2009 Anyone familiar with bankruptcy (if the lender, and I guess that's the takout/permanent lender on the first building and that the construction loan was taken out already?, takes ownership of the Mosaic condo building) know what happens here with the communal areas shared by both buildings? (parking, pool, workout room, etc)???Talking about what will be going on at Mosaic/Montage now...http://swamplot.com/mosaic-avoids-foreclos...1-09/#more-5461 Quote Link to comment Share on other sites More sharing options...
JWW Posted January 14, 2009 Author Share Posted January 14, 2009 (edited) Should be a simple question to answer for many of you : When someone comes to buy a condominium, does the new buyer just have to agree on terms with a majority of the condo association? Does he have to agree with every buyer (seems improbable) ? Does this differ depending on the bylaws of the Condo Association? Edited January 14, 2009 by JWW Quote Link to comment Share on other sites More sharing options...
TheNiche Posted January 15, 2009 Share Posted January 15, 2009 Should be a simple question to answer for many of you : When someone comes to buy a condominium, does the new buyer just have to agree on terms with a majority of the condo association? Does he have to agree with every buyer (seems improbable) ? Does this differ depending on the bylaws of the Condo Association?The buyer has to agree to obey the Condo Association's bylaws. The bylaws can change over time according to the proceedures described in the bylaws pertaining to their being changed (for instance, some aspects of the bylaws can be changed by majority vote while other aspects may require a supermajority vote). Regardless, the owner of a condo is subject to them. If a buyer is unwilling to agree, they cannot purchase the condo.The seller of a real property can arrange for a deed restriction to the property. This is done infrequently, such as where there is sentimental value attached to the home or trees and the seller doesn't wish anything to be disturbed. Some sellers use deed restrictions for historical preservation purposes. I cannot imagine, however, why a seller of a condo would want to enact a deed restriction, much less how they would enforce it. Quote Link to comment Share on other sites More sharing options...
JWW Posted January 15, 2009 Author Share Posted January 15, 2009 (edited) The buyer has to agree to obey the Condo Association's bylaws. The bylaws can change over time according to the proceedures described in the bylaws pertaining to their being changed (for instance, some aspects of the bylaws can be changed by majority vote while other aspects may require a supermajority vote). Regardless, the owner of a condo is subject to them. If a buyer is unwilling to agree, they cannot purchase the condo.The seller of a real property can arrange for a deed restriction to the property. This is done infrequently, such as where there is sentimental value attached to the home or trees and the seller doesn't wish anything to be disturbed. Some sellers use deed restrictions for historical preservation purposes. I cannot imagine, however, why a seller of a condo would want to enact a deed restriction, much less how they would enforce it.Sorry, I meant a buyer buying the entire condominium, not a unit (buying the development, not a condo unit), and did he have to agree with every unit OWNER (not 'buyer') ?? Edited January 15, 2009 by JWW Quote Link to comment Share on other sites More sharing options...
TheNiche Posted January 15, 2009 Share Posted January 15, 2009 Sorry, I meant a buyer buying the entire condominium, not a unit (buying the development, not a condo unit), and did he have to agree with every unit OWNER (not 'buyer') ??If the majority of condo units are owned by one entity, such as the original developer, then it doesn't really matter what is in the bylaws because that entity will change the bylaws to facilitate the sale of the units. Residents or investors that have already bought in do not yet have control of the Owners' Association, and so they don't really have any say in the matter. In fact, a financially distressed developer that controls the Association and is desperately looking to reduce operating costs or generate auxilliary streams of revenue has the power to royally screw over those that bought in early. This usually doesn't happen, because such practices have an adverse effect on the sale of units, but it has been known to happen. I won't name names, but there is a former condo project west of the Texas Medical Center where this kind of situation unfolded and the outcome was far more messy than at Mosaic/Montage.If the developer has to sell the remaining units (i.e. the entire development) and does not control the Association, they'll find that they have a very hard time doing so. The best offers for the units will come from apartment operators seeking to lease the rest of the units out as a large-scale operation, but empowered Owners' Associations don't like that and will do everything they can to block such a move. Getting the Owners' Association on board with such a plan under those circumstances typically is difficult or impossible. Foreclosure is nearly inevitable if sales stall out that late into a condo project. Quote Link to comment Share on other sites More sharing options...
JWW Posted January 15, 2009 Author Share Posted January 15, 2009 If the majority of condo units are owned by one entity, such as the original developer, then it doesn't really matter what is in the bylaws because that entity will change the bylaws to facilitate the sale of the units. Residents or investors that have already bought in do not yet have control of the Owners' Association, and so they don't really have any say in the matter. In fact, a financially distressed developer that controls the Association and is desperately looking to reduce operating costs or generate auxilliary streams of revenue has the power to royally screw over those that bought in early. This usually doesn't happen, because such practices have an adverse effect on the sale of units, but it has been known to happen. I won't name names, but there is a former condo project west of the Texas Medical Center where this kind of situation unfolded and the outcome was far more messy than at Mosaic/Montage.If the developer has to sell the remaining units (i.e. the entire development) and does not control the Association, they'll find that they have a very hard time doing so. The best offers for the units will come from apartment operators seeking to lease the rest of the units out as a large-scale operation, but empowered Owners' Associations don't like that and will do everything they can to block such a move. Getting the Owners' Association on board with such a plan under those circumstances typically is difficult or impossible. Foreclosure is nearly inevitable if sales stall out that late into a condo project.Thanks for the information. However, I am specifically curious about an existing, sold and closed condominium building , such as the building on central park south that had been in existence for over a decade when Trump came to buy the building and convert to his Trump Parc or Trump Parc South or Trump Infinity (you can choose the next hyperbolic name for him). If he wants to buy the building that is a condominium, I would think that he would have to either agree to purchase each unit (seems impossible to reasonably do), or maybe reach an agreement with over 50 percent of the voting shares of the condo association to set a price/foot for the purchase of each unit, whether the rest of the unit owners wanted to sell or not?Does this question make sense? Quote Link to comment Share on other sites More sharing options...
TheNiche Posted January 15, 2009 Share Posted January 15, 2009 Thanks for the information. However, I am specifically curious about an existing, sold and closed condominium building , such as the building on central park south that had been in existence for over a decade when Trump came to buy the building and convert to his Trump Parc or Trump Parc South or Trump Infinity (you can choose the next hyperbolic name for him). If he wants to buy the building that is a condominium, I would think that he would have to either agree to purchase each unit (seems impossible to reasonably do), or maybe reach an agreement with over 50 percent of the voting shares of the condo association to set a price/foot for the purchase of each unit, whether the rest of the unit owners wanted to sell or not?Does this question make sense?I am not familiar with New York state law, so there may be something that prevents what can be done in places like Texas and Florida, where I am familiar with the process. But if it is similar to what would happen here, the Condo Association's bylaws typically would have to be modified to address the sale of the project as a whole. Depending on how they're already set up, it may only require a 51% majority or might require a >51% supermajority. That detail varies on a case-by-case basis. Quote Link to comment Share on other sites More sharing options...
diggity Posted January 15, 2009 Share Posted January 15, 2009 Depending on how they're already set up, it may only require a 51% majority or might require a >51% supermajority. That detail varies on a case-by-case basis.The Memorial Bend Condos that were recently condemned require 97% of the residents to be in favor before a sale can be approved. Quote Link to comment Share on other sites More sharing options...
TheNiche Posted January 15, 2009 Share Posted January 15, 2009 The Memorial Bend Condos that were recently condemned require 97% of the residents to be in favor before a sale can be approved.What % is necessary in order to change the bylaws? Quote Link to comment Share on other sites More sharing options...
JWW Posted January 15, 2009 Author Share Posted January 15, 2009 So an owner of a condo could be forced to sell his unit without his consent? (e.g. - 98 percent of condo association says they will sell to a prospective buyer; the other 2 percent would be forced to sell, as well) Quote Link to comment Share on other sites More sharing options...
diggity Posted January 15, 2009 Share Posted January 15, 2009 What % is necessary in order to change the bylaws?That i do not know, but it must be a big number because nearly all the residents green lighted the current offer. There's a group of about 9 residents who are holding up the whole thing. Quote Link to comment Share on other sites More sharing options...
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