The projects listed for sale include
Other listings and several million dollars' worth of additional construction projects illustrate the potential private investors see in the sector. Many envision long-term prospects for the area. They point to deals taking place along the seven-and-a-half-block section from the freeway west to
"Long-term, you're sitting on incredible real estate on the corner of
That future might include office space for a company seeking a highly visible location, Johnson believes. But in the meantime, new owners of the complex expect to update the two-building development and renovate its 48 studio units, Johnson said. He would not disclose the name of his client.
Others see a common theme among the diverse listings in that apartment investments are a hot commodity, whether an older complex such as
"The developers are trying to catch the window and sell now, when vacancies are low, rents are rising and the overall interest rate is low" for borrowing financing, said
He said it is typical at this time of high demand for apartment investments to see brand-new developments up for sale, even before the complex is fully leased to tenants. About 35 out of 96 units have been leased in
Investors have inquired about the selling price of the complex since the onset of construction in early 2013, according to
"At that time, we were not thinking about selling," he said, indicating the project is worth the listing price.
"If somebody doesn't pay what it's worth, we'll put permanent financing on it and keep it," he said.
Kassab hopes to sell the complex to generate the capital to launch several other projects -- including two more downtown buildings. The first is a smaller, 3,000-square-foot, one-story retail building that will include access for a drive-through window. It will be marketed to bank branches, coffee vendors and fast-food restaurants, such as Burgerville, which sold its longtime downtown walk-up hamburger stand to Kassab. The venue was demolished in order to build
Kassab's second downtown development will be some type of residential complex, featuring 47 units. The project on a site Kassab owns at the corner of East 13th and E streets has already gone through development review and was originally planned as luxury condominiums.
"It could change, depending on the market," Kassab said.
Several more projects are in the works for the downtown stretch of
"We'll likely be in a position by the first part of June to have the building available," he said, adding that he feels potential tenants have more confidence in the market.
"There are some parties out there looking for new space," Ehrig said. "At the end of the day, those that moved forward and made an investment are ahead of the game."
But the upswing in office leasing isn't nearly as active as the investment demand for apartment projects, according to Barry, especially with low apartment vacancy rates of less than 3.5 percent in the
"Obviously, the demand is there and we're playing the catch-up game," Barry said. "I think the motivation is certainly there to catch that window because that's the hardest part, nobody knows where its going to end."
Other new apartment projects in the vicinity include the
Developers of West 15 say it will bring 120 affordable units, bicycle parking and some vehicle parking to a vacant site between
Developers say such projects are in high demand among young adults and baby boomers, two generations that seem to embrace urban amenities located within a walkable street grid. Barry described the trend as one that encourages real estate investors looking for returns on commercial real estate.
"Obviously, apartments have a lot going for them in today's market, if someone's looking to sell and maximize the investment," he said. "How long that streak will last is the question mark. That's the motivation for any owner to sell in today's market."
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