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The Christopher @The Union (31 ST) + The Union office tower (22 ST)

cowboyeagle05
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby cowboyeagle05 » 12 Feb 2020 10:49

Well with the high price is this the kind of market confidence that's driving Harwood to move ahead with their project? Harwood retains ownership though they don't sell their projects in this area. Hillwood, on the other hand, would love to build their office in VP, lease-up and sell I'm sure.
“Growth for the sake of growth is the ideology of the cancer cell”

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homeworld1031tx
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby homeworld1031tx » 12 Feb 2020 21:58

Any one want to speculate on why a pretty generic property sold for so much? Really surprised that it didn't include the residential portion too.

cowboyeagle05
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby cowboyeagle05 » 13 Feb 2020 00:56

The residential portion isn't worth much until its fully leased. You lease-up apartment buildings to at minimum 93% occupied or risk selling the property at a serious discount.
“Growth for the sake of growth is the ideology of the cancer cell”

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Tucy
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby Tucy » 13 Feb 2020 10:48

That, and interest in the apartment tower would probably come from an entirely different group of investors.

When would you expect the apartment tower would get to 93% occupancy? Another 5 months or so?

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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby cowboyeagle05 » 13 Feb 2020 13:40

It just depends on when they opened which I haven't bothered to look up. It's easy to find out though. You call the leasing office tell them you are doing a market survey for your boss and they will usually tell you occupied and leased percentage. If they ask which company I would just mention any management company. Most properties share that info with each other because every management company wants to know how their competitors are doing so they all share willingly. Plus every month they get calls from leasing data companies that also provide regionals with leasing information for executive-level decision making so they are used to just admitting those two numbers over the phone.

Properties that open in March lease up fast because they have the entire busy season March through August. In the Fall it drops off. September, November, December, January, February it's dead as a doornail so any properties that open in winter offer either really aggressive specials for the very small number of prospects or none at all until spring. Since this building is so big they maybe 50% leased but I have no idea. Since they aren't close to SMU I doubt they get much college student attention.
“Growth for the sake of growth is the ideology of the cancer cell”

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Tucy
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby Tucy » 13 Feb 2020 14:13

I think they opened in January 2019

cowboyeagle05
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby cowboyeagle05 » 13 Feb 2020 16:52

Then they must be over 50% but not likely to be 90%. With their number of units means inside a year they are less likely to lease up to 93% before leases start turning over. It could take at least two years.
“Growth for the sake of growth is the ideology of the cancer cell”

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Tucy
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby Tucy » 21 Feb 2020 17:02

cowboyeagle05 wrote:Then they must be over 50% but not likely to be 90%. With their number of units means inside a year they are less likely to lease up to 93% before leases start turning over. It could take at least two years.


That would be an unusually long time to achieve stabilization (normally 95%). I believe successful developers usually expect to achieve stabilization in about 1 year.

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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby cowboyeagle05 » 22 Feb 2020 10:28

Tucy wrote:
cowboyeagle05 wrote:Then they must be over 50% but not likely to be 90%. With their number of units means inside a year they are less likely to lease up to 93% before leases start turning over. It could take at least two years.


That would be an unusually long time to achieve stabilization (normally 95%). I believe successful developers usually expect to achieve stabilization in about 1 year.


Apparently it depends on how aggressive you are. 93% is what it has been for every property I have worked for but we usually always shortly reach 97% soon after despite that as you reach 93% the aggressive specials are taken away. 8 Weeks Free becomes 1 month free if you sign your firstborn away. For large high rises, I have seen them expect a longer occupancy turn depending on when they open and how much of the farm they are willing to give away to get to that magic number.
“Growth for the sake of growth is the ideology of the cancer cell”

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mjsampey
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby mjsampey » 25 Feb 2020 09:43

It's currently at 89% leased, 82% occupied.

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mhainli
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby mhainli » 25 Feb 2020 10:26

Considering how long it’s been open AND all the other high rise competition, that’s very good.

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jetnd87
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby jetnd87 » 25 Feb 2020 10:32

Yea that's shocking, especially given they're charging some of the highest rents in the market and the area is still underdeveloped for residents (i.e., next to North End, empty lots, etc.). With those numbers, how are we not seeing residential towers breaking ground in adjacent lots right now?

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Cbdallas
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby Cbdallas » 25 Feb 2020 11:09

I have not been to those restaurants in a while how are they doing with business now that the initial opening excitement has waned.

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dalbert
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby dalbert » 25 Feb 2020 12:33

The Henry and North Italia are typically slammed. The Henry also draws a nice nighttime crowd on the rooftop. Can't speak to TacoLingo and the sushi spot.

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eburress
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby eburress » 25 Feb 2020 13:09

dalbert wrote:The Henry and North Italia are typically slammed. The Henry also draws a nice nighttime crowd on the rooftop. Can't speak to TacoLingo and the sushi spot.


I ate lunch at the sushi place yesterday. The food was terrific and it seemed like they were doing decent business (full but not packed like The Henry usually is).

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emmasensei
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby emmasensei » 25 Feb 2020 14:16

We've tried a few times to make a sorta short term reservation at The Henry and there was no hope. It's always full.

DPatel304
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby DPatel304 » 25 Feb 2020 14:53

emmasensei wrote:We've tried a few times to make a sorta short term reservation at The Henry and there was no hope. It's always full.


Wow, good for them! I know this was the case shortly after it opened, but I figured eventually things would calm down. I'm glad to see they are doing well, as it is a great space, and the food is fantastic!

Tnexster
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Re: The Christopher @The Union (31 ST) + The Union office tower (22 ST)

Postby Tnexster » 25 Feb 2020 16:49

I've been once or twice, thought it was good but not exceptional. Glad they are doing well though.


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