Joe Weston knows
There are too may cr-apartments being built in Portland. So much so that he's not throwing any of his money at more of them, even in the Pearl.
| Posted at 9:42 AM | Permalink |
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This page contains a single entry from the blog posted on December 13, 2012 9:42 AM.
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Comments (3)
If it doesn't pencil out for one of the most successful developers in town, it means it's the perfect candidate for a vibrant public-private partnership opportunity. Gentlemen (and Tiffany), start your linchpins.
Posted by jmh | December 13, 2012 11:49 AM
Joe is still hurting from his condo project in the Pearl, however, all of his old stock apartments are in pretty nice neighborhoods and he is doing OK.
BTW - Tiffany is Homer's step-daughter and that apartment project is supposedly going to be income-qualified, albeit with the aid of a fat PDC check since they want them to build in the River District.
Posted by Steve | December 13, 2012 12:25 PM
Portland has seen little job growth and no wage increases for five years. Population growth barely registers, yet crapartments are popping up all over.
To date, relatively few projects have come online - 75 units on Williams, a few in the Pearl and NW, and a few in close-in SE -- in total, maybe 400 or 500 units in the close-in areas have been built since the recession (over a period of four years). These have absorbed because inventory is historically low and many landlords have been able to raise rents by double digits.
In close-in Portland there are approximately 1,000 crapartment units slated to come online in the first half of 2013 -- roughly twice the amount that has been introduced in the prior four years.
Here's the test: will these 1,000 units absorb at the rents the greedy developers need, or will they have to lower rents to fill them?
It's getting very frothy with 430 + units on the Bridgehead and the 150+ units planned for Salvation Army site between SE Ash and SE Ankeny, the hundreds of "luxury" crapartments in the Pearl, and the other Remmers schlock; these developers are all getting dressed up with nowhere to go.
Pop some popcorn and pull up a seat...this is not going to be good for anybody...except for the Portland renter who will have plenty of empty crapartments to choose from with eager landlords ready to make a deal.
Portland is attracting national developers because the apple is shiny right now, but the core is rotten: no job growth, wage stagnation, and a pipeline full of $1,200 studio bunkers....
JOE WESTON IS RIGHT.
Posted by PD | December 13, 2012 8:42 PM