Comments on: W Austin Residences City Views http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/ downtown Austin's neighborhood and real estate blog Tue, 22 May 2012 17:52:16 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Jude Galligan http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1616 Jude Galligan Wed, 17 Mar 2010 13:33:46 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1616 You might think so, but this hasn't been the case in my experience. You might think so, but this hasn’t been the case in my experience.

]]> By: JC http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1615 JC Tue, 16 Mar 2010 15:57:03 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1615 speaking of SXSW, how do sales relate to the festival? is there an actual uptick at this time of year due to the festival? speaking of SXSW, how do sales relate to the festival? is there an actual uptick at this time of year due to the festival?

]]> By: Greg http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1614 Greg Mon, 08 Mar 2010 16:46:15 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1614 The W will be a great centerpiece for the area. I can't wait for its ground floor to come alive. The W will be a great centerpiece for the area. I can’t wait for its ground floor to come alive.

]]> By: JJC http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1613 JJC Sat, 06 Mar 2010 16:00:31 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1613 I agree that holding onto units increases the costs to the developers, but that usually doesn't change their sales price, just reduces profits for the developers. So it may be the same effect to the developers, it doesn't have the same downward price effect on the whole market. I would think a more realistic option would be for developers if they have lots of unsold inventory to attempt to lease the units until the market conditions improve (since poor market conditions will keep anything newer from coming online) Really the W worries me the least of the 3 ultra luxury buildings. They are the most sold and the last to open. I would expect them to be over 75% by the time they open. The Austonian is where I have my concerns. Under 40% sold and it plans to open in 60 days. I could see this building turning into a partial rental building. Obviously market rental rates have plunged and buildings like the Ashton have had trouble with leasing, but if i were a developer who was optimistic prices would rebound eventually, this might be an amenable temporary fix. Also it is permitted for the developers of the W, Austonian and Four Seasons to do this by their contracts. I agree that holding onto units increases the costs to the developers, but that usually doesn’t change their sales price, just reduces profits for the developers. So it may be the same effect to the developers, it doesn’t have the same downward price effect on the whole market.

I would think a more realistic option would be for developers if they have lots of unsold inventory to attempt to lease the units until the market conditions improve (since poor market conditions will keep anything newer from coming online)

Really the W worries me the least of the 3 ultra luxury buildings. They are the most sold and the last to open. I would expect them to be over 75% by the time they open.

The Austonian is where I have my concerns. Under 40% sold and it plans to open in 60 days. I could see this building turning into a partial rental building. Obviously market rental rates have plunged and buildings like the Ashton have had trouble with leasing, but if i were a developer who was optimistic prices would rebound eventually, this might be an amenable temporary fix. Also it is permitted for the developers of the W, Austonian and Four Seasons to do this by their contracts.

]]> By: Mr. Bubble http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1612 Mr. Bubble Sat, 06 Mar 2010 06:53:30 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1612 I'm not saying it's a great comparison, just that it's a real market-based number. (Thank goodness, this non-disclosure state stuff is maddening) And so, if I were trying to sell something nearby for 500 sq ft., I'd be worried. Better yes, 110% better, maybe. BTW, prolonging the process of sales means bearing the carrying cost (int., taxes, maint, insurance, opportunity cost, and risk of further market decline)...which is the same as lowering your price. It's enormous. Sales will pick up with prices are offered at market rates, not sooner. Sabine offered its units are market prices and sold them in one day. I’m not saying it’s a great comparison, just that it’s a real market-based number. (Thank goodness, this non-disclosure state stuff is maddening) And so, if I were trying to sell something nearby for 500 sq ft., I’d be worried. Better yes, 110% better, maybe.

BTW, prolonging the process of sales means bearing the carrying cost (int., taxes, maint, insurance, opportunity cost, and risk of further market decline)…which is the same as lowering your price. It’s enormous.

Sales will pick up with prices are offered at market rates, not sooner. Sabine offered its units are market prices and sold them in one day.

]]> By: Jude Galligan http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1611 Jude Galligan Fri, 05 Mar 2010 22:56:17 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1611 They staged the party on the 31st floor. Lots of cool lighting, but at that moment they had the orange construction cones out. They staged the party on the 31st floor. Lots of cool lighting, but at that moment they had the orange construction cones out.

]]> By: Will Anderson http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1610 Will Anderson Fri, 05 Mar 2010 22:49:55 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1610 Good stuff. What exactly is this one, though? http://downtownaustin.wordpress.com/2010/03/04/w-austin-residences-city-views/dsc_0102/ Looks like a construction area, but the lighting is odd... Good stuff. What exactly is this one, though?

http://downtownaustin.wordpress.com/2010/03/04/w-austin-residences-city-views/dsc_0102/

Looks like a construction area, but the lighting is odd…

]]> By: JJC http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1609 JJC Fri, 05 Mar 2010 02:52:40 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1609 I know for a fact units have sold just from my contacts. Also the Sabine was a conversion of a 10 story building that was designed in the late 70's of the last century vs a building that is still under-construction. Not to mention the deeper pockets of the developers that allow them to hold onto unsold inventory longer than they could at the sabine. I do agree that the original price assumptions do not exist, but that really just prolongs the process. of sales, which as we said before, the developer is more suited to handle. I think these buildings will still sell over 400+ sf. and many units easily over 500 sf. The velocity of sales should also pick up once there are actual units to tour and customers can walk around and get a feel for a space. Its very difficult to make a decision about spending that kind of money on the abstract, a lot of people need to see it and touch it, walk around it to get a feeling of the dimensions. These buyers are going to have a greater impact as the building gets closer to opening. bottom line there have been sales and the sabine isn't an apples to apples comparison. I know for a fact units have sold just from my contacts. Also the Sabine was a conversion of a 10 story building that was designed in the late 70′s of the last century vs a building that is still under-construction. Not to mention the deeper pockets of the developers that allow them to hold onto unsold inventory longer than they could at the sabine.

I do agree that the original price assumptions do not exist, but that really just prolongs the process. of sales, which as we said before, the developer is more suited to handle. I think these buildings will still sell over 400+ sf. and many units easily over 500 sf.

The velocity of sales should also pick up once there are actual units to tour and customers can walk around and get a feel for a space. Its very difficult to make a decision about spending that kind of money on the abstract, a lot of people need to see it and touch it, walk around it to get a feeling of the dimensions. These buyers are going to have a greater impact as the building gets closer to opening.

bottom line there have been sales and the sabine isn’t an apples to apples comparison.

]]> By: Mike Scono http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1608 Mike Scono Thu, 04 Mar 2010 17:07:55 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1608 My guess is that W, Austonian, Four Seasons, and Spring all think they'll be selling a number of units shortly after SXSW to some of the New Yorkers and Californians who are in town and see the beautiful new buildings they could have a vacation spot in for the few weeks a year they are in Austin. My guess is that W, Austonian, Four Seasons, and Spring all think they’ll be selling a number of units shortly after SXSW to some of the New Yorkers and Californians who are in town and see the beautiful new buildings they could have a vacation spot in for the few weeks a year they are in Austin.

]]> By: Mr. Bubble http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1607 Mr. Bubble Thu, 04 Mar 2010 16:28:53 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1607 My guess is that nothing has sold in 6 months and that is why you haven't seen any numbers. The price assumptions on which this building depend have collapsed downtown. Check out the results of the Sabine auction. (228 sq ft for new condos) My guess is that nothing has sold in 6 months and that is why you haven’t seen any numbers. The price assumptions on which this building depend have collapsed downtown. Check out the results of the Sabine auction. (228 sq ft for new condos)

]]> By: JJC http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1606 JJC Thu, 04 Mar 2010 15:34:54 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1606 Thanks Jude, I've seen the same numbers for all the buildings for the last 6 months at least. I'm going to assume they haven't released new official data. Thanks Jude,

I’ve seen the same numbers for all the buildings for the last 6 months at least. I’m going to assume they haven’t released new official data.

]]> By: Jude Galligan http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1605 Jude Galligan Thu, 04 Mar 2010 14:56:03 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1605 Charles Heimsath's firm Capital Market Research probably has the best data on this, assuming the builder is forthcoming. http://downtownaustinfacts.com/2009_10_17_CMR_Future_CBD_Table.pdf Charles Heimsath’s firm Capital Market Research probably has the best data on this, assuming the builder is forthcoming.

http://downtownaustinfacts.com/2009_10_17_CMR_Future_CBD_Table.pdf

]]> By: JJC http://downtownaustinblog.org/2010/03/04/w-austin-residences-city-views/#comment-1604 JJC Thu, 04 Mar 2010 14:52:48 +0000 http://downtownaustin.wordpress.com/?p=5917#comment-1604 Great party, scary elevators. I can't wait until the building opens. Does anyone know where they stand at sales? I know they were around 50% in July, does anyone have any more recent data? Great party, scary elevators.

I can’t wait until the building opens.

Does anyone know where they stand at sales? I know they were around 50% in July, does anyone have any more recent data?

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