El Ultimo Dia. The last day of class.
I have enjoyed this class just like I've enjoyed all the other real estate courses I've taken. It has been great learning from the class discussions with Dr. Forgey and my classmates.
Transportation
The TxDOT Rail Division is urging the public to provide input regarding the Texas State Rail Plan that will be updated this fall. According to the article, The Rail Plan is required by the Texas Legislature and is also an important document that the Federal Railroad Administration (FRA) will examine to determine future funding for rail projects.
Adaptive Reuse Projects
Several articles regarding adaptive reuse were discussed. One article for example discussed a developer buying an old office building in downtown Pittsburgh and having plans to convert it to a residential building. This is a trend in larger cities. There are historical tax incentives for reusing old buildings and developers are capturing that niche market. However, when working with an adaptive reuse project there are many unknowns. When performing your due diligence, a developer should seek help from qualified experts in construction to help identify possible huge issues that may negatively impact a project. After reviewing all visible issues a cost estimate model can be built. After this is provided, it will help a developer identify whether a project is financially feasible or not.
Thursday, August 12, 2010
August 5, 2010 - Development / Construction / Adaptive Re-use / Redevelopment Trends and Issues
Dia Nueve.
It may be 2011 before population growth and job creation push existing construction projects and distressed assets through the system. Only then will apartment owners, investors, and developers be able to reap the benefits.
iPads are being used in the construction industry. My employer has purchased iPads for all field staff. A major benefit is the ipad’s ability to link to virtual plan rooms through the web and access all project drawings, contracts, specifications, project schedules, RFIs, submittals, purchase orders, correspondence, contacts, photos, etc. The iPad improves productivity for supervisors and craftsmen. The iPad on project sites, dramatically reduces the need to carry 50lb contract drawings and specification manuals around the jobsite. Cost savings is another benefit of using the ipad due to reduction of job printing required for a project. In addition,a green initiative may be launched based on the paper savings, providing better customer service.
The National Association of Home Builders (NAHB) has urged policymakers to address the lack of financing for housing production that is impeding the housing and economic recovery.
Homebuilders are in for a rough few years now that the home buying tax credit era has ended.
The Chief Executive from D.R. Horton Homes believes 2011 and 2012 are going to be tough years. He quotes "I just don't see any sustainability of growth or profitability until we get some jobs created in this country and until consumer confidence improve. D.R. Horton is by far the most aggressive in cutting prices from all homebuilders.
June 2010 contracts for future commercial construction in the Dallas-Fort Worth-Arlington Metropolitan statistical fell 51 percent when compared to June 2009, according to McGraw-Hill Construction.
Not all projects, though, are moving forward because the numbers still aren’t working. Developers looking for financing are running up against lenders that are still underwriting to very conservative metrics.
According to Milam, lenders are underwriting deals for garden-style apartments at a $2.40 to $2.60 per square foot range. High rises may go for as much as $3 per square foot. He advises these numbers are doable, but only if the land hasn’t traded in a while--specifically since 2006. "Anyone who purchased land after 2006 paid too much for it," he says.
"The price was likely based on condo outsales and the numbers just won’t work. Banks won’t underwrite a deal with rents penciled in at $4.50 per square foot, which is what land at those prices will require." Developers holding onto land from that time will have to wait at least five years before the underwriting and project costs meet at an acceptable point.
Due to the Gulf Coast oil spill, the governor of Florida wants commercial and residential real estate values to be re-appraised to calculate the loss in property values. The governor wants BP to pay for the decline in real estate values.
It may be 2011 before population growth and job creation push existing construction projects and distressed assets through the system. Only then will apartment owners, investors, and developers be able to reap the benefits.
iPads are being used in the construction industry. My employer has purchased iPads for all field staff. A major benefit is the ipad’s ability to link to virtual plan rooms through the web and access all project drawings, contracts, specifications, project schedules, RFIs, submittals, purchase orders, correspondence, contacts, photos, etc. The iPad improves productivity for supervisors and craftsmen. The iPad on project sites, dramatically reduces the need to carry 50lb contract drawings and specification manuals around the jobsite. Cost savings is another benefit of using the ipad due to reduction of job printing required for a project. In addition,a green initiative may be launched based on the paper savings, providing better customer service.
The National Association of Home Builders (NAHB) has urged policymakers to address the lack of financing for housing production that is impeding the housing and economic recovery.
Homebuilders are in for a rough few years now that the home buying tax credit era has ended.
The Chief Executive from D.R. Horton Homes believes 2011 and 2012 are going to be tough years. He quotes "I just don't see any sustainability of growth or profitability until we get some jobs created in this country and until consumer confidence improve. D.R. Horton is by far the most aggressive in cutting prices from all homebuilders.
June 2010 contracts for future commercial construction in the Dallas-Fort Worth-Arlington Metropolitan statistical fell 51 percent when compared to June 2009, according to McGraw-Hill Construction.
Not all projects, though, are moving forward because the numbers still aren’t working. Developers looking for financing are running up against lenders that are still underwriting to very conservative metrics.
According to Milam, lenders are underwriting deals for garden-style apartments at a $2.40 to $2.60 per square foot range. High rises may go for as much as $3 per square foot. He advises these numbers are doable, but only if the land hasn’t traded in a while--specifically since 2006. "Anyone who purchased land after 2006 paid too much for it," he says.
"The price was likely based on condo outsales and the numbers just won’t work. Banks won’t underwrite a deal with rents penciled in at $4.50 per square foot, which is what land at those prices will require." Developers holding onto land from that time will have to wait at least five years before the underwriting and project costs meet at an acceptable point.
Due to the Gulf Coast oil spill, the governor of Florida wants commercial and residential real estate values to be re-appraised to calculate the loss in property values. The governor wants BP to pay for the decline in real estate values.
July 29, 2010 - Fort Worth Trinity River Vision Project
Dia Ocho.
Our class walked a few blocks from our college campus to the Trinity River Vision headquarters in downtown Fort Worth. We were greeted by Shanna Cate when we arrived, and we were provided with an informational session about the Trinity River Vision Project.
The "Master Plan" for the Trinity River is a concept literally decades in the making. Encouraged by community volunteers in the 1980's, developed by urban designers and specialty consultants in the 1990's, and adopted by City Council in 2003, the Trinity River Vision Master Plan encompasses 88 miles of the Trinity River and its greenbelts and tributaries throughout the Fort Worth area. The "vision" has always been to advocate for this natural resource, keeping the river beautiful, accessible, enjoyable, and productive. Making sure it remains a valuable asset for the entire community.
The plan focuses on eight segments of the Trinity River and its tributaries: Clear Fork North, Clear Fork South, Marine Creek, Mary's Creek, Sycamore Creek, West Fork East, West Fork West, and the Central City area now called Trinity Uptown. It considers environmental quality, conservation, recreation facilities, trail developments, reforestation, beautification, and linkage to neighborhoods, downtown, and other special districts. The plan also addresses adjoining land uses, transportation and how other facilities best complement and benefit from the greenways.
The project has a 12 year construction schedule for the bridges, bypass channel, storm water management, isolation gates, dam and channel lock, interior water feature and Trinity uptown. Construction started in 2009, so it is scheduled to be completed in 2021. Private development may begin with the mixed development projects and start building multifamily, office, retail and restaurants. I’m excited about this because I currently work on mixed development projects, so I recognize there is huge opportunity for business growth in Fort Worth, Texas.
When the project is completed it will provide an estimated 16,000 permanent jobs, and 10,000 mixed income residential units.
Our class walked a few blocks from our college campus to the Trinity River Vision headquarters in downtown Fort Worth. We were greeted by Shanna Cate when we arrived, and we were provided with an informational session about the Trinity River Vision Project.
The "Master Plan" for the Trinity River is a concept literally decades in the making. Encouraged by community volunteers in the 1980's, developed by urban designers and specialty consultants in the 1990's, and adopted by City Council in 2003, the Trinity River Vision Master Plan encompasses 88 miles of the Trinity River and its greenbelts and tributaries throughout the Fort Worth area. The "vision" has always been to advocate for this natural resource, keeping the river beautiful, accessible, enjoyable, and productive. Making sure it remains a valuable asset for the entire community.
The plan focuses on eight segments of the Trinity River and its tributaries: Clear Fork North, Clear Fork South, Marine Creek, Mary's Creek, Sycamore Creek, West Fork East, West Fork West, and the Central City area now called Trinity Uptown. It considers environmental quality, conservation, recreation facilities, trail developments, reforestation, beautification, and linkage to neighborhoods, downtown, and other special districts. The plan also addresses adjoining land uses, transportation and how other facilities best complement and benefit from the greenways.
The project has a 12 year construction schedule for the bridges, bypass channel, storm water management, isolation gates, dam and channel lock, interior water feature and Trinity uptown. Construction started in 2009, so it is scheduled to be completed in 2021. Private development may begin with the mixed development projects and start building multifamily, office, retail and restaurants. I’m excited about this because I currently work on mixed development projects, so I recognize there is huge opportunity for business growth in Fort Worth, Texas.
When the project is completed it will provide an estimated 16,000 permanent jobs, and 10,000 mixed income residential units.
July 22, 2010 - Dallas Trinity River Project
Dia Siete.
The project covers 20 miles of the Trinity River,approx. 10,000 acres.
This project addresses a number of regional concerns, though flood protection remains the essential cornerstone of this multifaceted effort.
The interrelated components of the project are:
– Flood Protection
– Environmental Restoration
– Recreation
– Transportation
– Community/economic development
Resolution of Levee issues
• More frequent mowing cycles
• Rip rap/drainage relocation for erosion
• Soil borings will determine needs for diaphragm walls
• Work with other agencies to determine needs
• The Trinity River Corridor Project will provide many of
the “fixes” for the unacceptable conditions of the levee
system
– Diaphragm walls
– Chain of wetlands
– Removal of ATSF Railroad Bridge
– Raising/fattening the levees
The design concept for a 10,000acre portion of the Trinity River Corridor from Royal Lane down to IH635/IH20past the Trinity River Audubon Center.
The promenade will accommodate 19,000 people during peak events and activities
• 80% of the promenade will be shaded throughout the course of the day.
Shade structures take the place of tree vegetation in this plaza preserving views of the downtown skyline and promenade, while Seating walls are integrated with the topography and provide illumination at night.
• Interactive fountains and darkcolored, exposed aggregate concrete paving slopes into the lake as a beach.
The project covers 20 miles of the Trinity River,approx. 10,000 acres.
This project addresses a number of regional concerns, though flood protection remains the essential cornerstone of this multifaceted effort.
The interrelated components of the project are:
– Flood Protection
– Environmental Restoration
– Recreation
– Transportation
– Community/economic development
Resolution of Levee issues
• More frequent mowing cycles
• Rip rap/drainage relocation for erosion
• Soil borings will determine needs for diaphragm walls
• Work with other agencies to determine needs
• The Trinity River Corridor Project will provide many of
the “fixes” for the unacceptable conditions of the levee
system
– Diaphragm walls
– Chain of wetlands
– Removal of ATSF Railroad Bridge
– Raising/fattening the levees
The design concept for a 10,000acre portion of the Trinity River Corridor from Royal Lane down to IH635/IH20past the Trinity River Audubon Center.
The promenade will accommodate 19,000 people during peak events and activities
• 80% of the promenade will be shaded throughout the course of the day.
Shade structures take the place of tree vegetation in this plaza preserving views of the downtown skyline and promenade, while Seating walls are integrated with the topography and provide illumination at night.
• Interactive fountains and darkcolored, exposed aggregate concrete paving slopes into the lake as a beach.
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