Author Topic: More apartments to come out Butler way  (Read 2301 times)

mtraininjax

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More apartments to come out Butler way
« on: June 26, 2016, 11:35:25 AM »
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By Roger Bull Sat, Jun 25, 2016 @ 8:09 pm | updated Sat, Jun 25, 2016 @ 8:11 pm


More apartments are coming to A.C. Skinner Parkway.

Construction has begun on Portiva, a 260-unit complex that’s going in at A.C. Skinner Parkway and Salisbury Road, next to Dave & Buster’s. There are going to be eight four-story buildings. Landsouth Construction was issued the eight permits totaling $24 million.

It’s expected to be completed in November 2017.

And now another one is in the works. JTB will be a 350-unit complex on the southwest quadrant of the Southside/Butler Boulevard intersection. It’s going to be four five-story buildings that developer Mark Farrell of Killashee Investments estimates will cost $50 million.

Farrell expects groundbreaking during the fourth quarter with the first units being delivered 12 months later. Full construction is expected to take 18 months. He described this as a luxury complex with 10-foot ceilings, wood floors and granite countertops. Rents will range from $1,100 to about $2,000.

He said there’s plenty of room for more apartments in the area. Luxury complexes were taken out of the rental market and converted to condos during the building boom, he said. And then during the recession, nothing was being built at all.

So for someone to afford an 1100 to 2000 a month apartment, they need to bring in at least 3x that in gross salary, so a $40,000  to $72,000 a year in household income. That's some pretty good scratch needed.
And, that $115 will save Jacksonville from financial ruin. - Mayor John Peyton

“This is a game-changer. This is what I mean when I say taking Jacksonville to the next level.”
-Mayor Alvin Brown on new video boards at Everbank Field

spuwho

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Re: More apartments to come out Butler way
« Reply #1 on: June 26, 2016, 01:27:59 PM »
Word on the street is that there is another bubble in the works. Oversupply in homes in apartments are forming. May not burst until after the election.

Fed has been signaling a rate increase to try to slow things down, but the Administration doesnt want it to happen on their watch so they are holding out until a new President takes over.


mtraininjax

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Re: More apartments to come out Butler way
« Reply #2 on: June 26, 2016, 03:40:03 PM »
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but the Administration doesnt want it to happen on their watch so they are holding out until a new President takes over.

because the Presidential Administration has Sooooooooooooooooooooooooooooo much control over what the Fed does? The Fed does NOT matter, we live in a world of damn near zero % interest rates, a 1/4 point here and there means so little.

There are bigger issues in the credit and bond markets that are too long and complicated to go into, but Malls and Commercial Real Estate are failing, car companies are slowing in sales (look at the ridiculous deals they are offering, to pay months of payments in advance for new owners), and the oil debt is about to come due, with banks on the hook for billions in cheap loans......this fall is gonna get interesting and fun, if you play the market.

The easiest way for the average reader to see the problems is to watch the labor pool, if unemployment starts to rise, look out below! May was a bad month, what will June bring?
And, that $115 will save Jacksonville from financial ruin. - Mayor John Peyton

“This is a game-changer. This is what I mean when I say taking Jacksonville to the next level.”
-Mayor Alvin Brown on new video boards at Everbank Field

Snaketoz

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Re: More apartments to come out Butler way
« Reply #3 on: June 26, 2016, 04:08:10 PM »
Word on the street is that there is another bubble in the works. Oversupply in homes in apartments are forming. May not burst until after the election.

Fed has been signaling a rate increase to try to slow things down, but the Administration doesnt want it to happen on their watch so they are holding out until a new President takes over.
Sorry, that is just wrong.  So many people think that a sitting president micro manages every detail of everyone's lives.  If the Administration didn't want it to happen, I'm sure the opposing Congress would make sure it did.

spuwho

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Re: More apartments to come out Butler way
« Reply #4 on: June 26, 2016, 05:24:47 PM »
2 seperate activites.

Yellen has been telegraphing a rate increase for a year now, but hasnt pulled the trigger or convinced the other governors to do so.  Her policy is heavily tied to unemployment rates. But there has been some issues in the measurement of chronically underemployed in economic terms.

The Obama Administration irrespective of the Fed, does not want another recession going into the 4Q of 2016 and will support any policy that freely allows the supply of M1 to be available.

Keeping long term interest rates low has an issue of creating distortions in certain markets.  In this case, new home building, where the cost to maintain inventory is very low.

It does have some benefits, the low rates are allowing the oil frac industry to recover much faster as they cut costs and refinance their capex.

While there has been a healthy seperation of duties between the Fed and the Administration's for most of the past 30 years,  this sudden habit of telegraphing policy so far in advance has some qualities of the current administration, and is why some believe there is a coorelation.

Many people debate the relationship between Fed actions and interest rates in many forums and the relationship can be complex because there are many factors that lead to the type of actions they would take.

Back to homebuilding, there is a supply growth happening that people in the business I talk to say is reaching saturation. Over saturation requies discounts. Discounts cut profits. No profits, cant pay construction loans.

billy

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Re: More apartments to come out Butler way
« Reply #5 on: June 26, 2016, 06:59:29 PM »
It is my understanding Multifamily  construction debt financing in metro Atlanta hit the brakes the last few months.