The Spectrum at Willoughby Point

[rusthebuss]

I haven't seen movement on this project in months. I wonder if financing is a problem with this project. Maybe slow sales

[odumonarch]

I haven't seen movement on this project in months. I wonder if financing is a problem with this project. Maybe slow sales

[Sky06]

Or its location that is hurricane prone. People won't move there unless something drastic is done to improve the project.

[Telmnstr]

Or its location that is hurricane prone. People won't move there unless something drastic is done to improve the project.

[vdogg]

What happened to Spectrum?

It's really great that the pilot has decided to take on all these stalled projects and get answers.

This is the first in a series exploring five seemingly stalled construction projects across Hampton Roads. NORFOLK

Formed from sand displaced by the same hurricane that destroyed Fort George in October 1749, Willoughby Spit seemed to be going upscale with its first major, high-end, mixed-use project, The Spectrum at Willoughby Point.

Plans, announced in March 2005, called for more than 300 housing units, plus retail. But, as many Willoughby residents and boaters have noticed, construction stopped as abruptly as it began.

[vdogg]

This all goes to show that there are numerous reasons for a project to be delayed or slowed down, and it doesn't all have to do with financing. Hopefully the city will move a little faster on this.

[VAGATOR]

Honestly, that sounds like some of that good ol Granby Tower spin we put up with for years.

[spiker3]

Honestly, that sounds like some of that good ol Granby Tower spin we put up with for years.

[Chesapeake Pirate]

There's a big difference between spin and truth. GT didn't spin anything, they flat out lied. Spectrum is being upfront and not pulling a smoke and mirrors campaign. GT would have proceeded with the water and permit issues with the following:

"We're on track for construction to begin in a few weeks, so get your pre-construction pricing now!"

Apples and oranges in the two.

[vdogg]

Lol, well if they didn't "lie" then they most certainly failed to tell the truth. My favorite one is when Gadams said financing had been secured and no city help would be needed, and then 3 weeks later there's an article titled "Norfolk saves Granby Tower" with Gadams claiming the project would not be able to happen without their help. But alas, this thread is for the Spectrum, not GT, and GT is under construction now so all is good.

[Chesapeake Pirate]

Lol, well if they didn't "lie" then they most certainly failed to tell the truth. My favorite one is when Gadams said financing had been secured and no city help would be needed, and then 3 weeks later there's an article titled "Norfolk saves Granby Tower" with Gadams claiming the project would not be able to happen without their help. But alas, this thread is for the Spectrum, not GT, and GT is under construction now so all is good.

[lil-bear]

If I remember correctly, the city originally had concerns about water pressure in that part of town.

I think that the devoloper assured the city that they would take care of it.

So the water pressure issue is just a legitimate speed bump!

Well end up with a new water tower!

[vaceltic]

It's official. This project is dead

Link

[vdogg]

Oh well, less competition for Granby Tower. As long as that still goes through i'm ok with this. This just isn't a good time for condo projects nationwide.

[spiker3]

It's official. This project is dead

Link

[Sky06]

Dead is a tad strong, the developer isn't looking at selling the land and made serious commitments to develop is regardless. It won't happen soon, but this will be developed in some form. Given the market conditions not a large surprise, though i'd give this project more of a chance than others around the area to be resurrected, but we'll see how it goes.

It is a shame though, could have been something really great.

[rusthebuss]

Balance doesn't catch peoples attention unfortunetly. People feed off of the negative and catches peoples attention.

[Sky06]

Balance doesn't catch peoples attention unfortunetly. People feed off of the negative and catches peoples attention.

[rusthebuss]

Catching their attention is one thing. Turning them off on a community is another.

[Telmnstr]

It amazes me how much emphasis the negative side of stories received from the Pilot. Where the hell is the balance?

[Chesapeake Pirate]

What balance? Don't you get it? All the growth of the past 5+ years has been a sham. Things are VERY messed up financially in our country because of it. The Pilot was VERY rosy all during the run up, they helped to make a select set of people very wealthy with their misleading rah-rah to infinity and beyond stories. They are reporting this stuff a little on the late side if you ask me. Only when it's no longer possible to hide it.

You can't have a country that is based on people buying things on an ever increasing amount of debt forever. In the meantime the corporations are doing what they can to eliminate our ability to earn money in the name of greed (offshoring / bottom lines). At some point things stop working when there is no one willing to lend money (like, right about.... oh... now).

[PeninsulaKiddo]

"Rah-rah to infinity and beyond"

Did Buzz Lightyear marry a cheerleader? I missed the memo.

In sincerity, I think the project can - in some form or another - be salvaged, perhaps as apartments, or a more mixed-use project (such as "office condos" and apartments mixed together in various buildings). The location is developable - it's surrounded on three sides by water and has incredible views of the Peninsula and greater Hampton Roads. Someone, or anyone, will want to build there, it's just a matter of time.

(Micro)Economically speaking, even with the slowdown in construction, particularly in single family homes and condos, there will still be demand down the line. It's the most basic of economic principles related to supply and demand: a positive demand factor (population growth) is ongoing in most areas of Hampton Roads and is forecast to continue, thus demand will also increase, eventually. Another positive demand factor, household incomes, is increasing throughout the region (albeit not as quickly as most would like to see), thus, the demand will yet again, in time increase. Now, the price factors come in - they won't reach the levels they had 12-18 months ago again for a long while, simply because it's unrealistic and unsustainable (and was highly speculative); however, they too will increase given sufficient time. Within a few years (in the grand scheme of things - a very brief amount of time) the market will have completely rebounded. Supply temporarily outstripped demand, but it's been reeled back in. With sustained population growth we'll hit an equilibrium point again, then move back into the cycle and back towards rising home/condo prices and rising demand. Like most things - economic, political, social, and otherwise - the housing market is truly cyclical.

In regard to (home) purchases on debt - that is by definition speculative investment; it is one of few investments riskier than the stock market, especially today. But it, too is a component of the economy; consider all the companies, all the cities, towns, townships, counties, states, and nations that make massive purchases on debt - the United States has held an ever-growing debt well above a trillion dollars for decades (almost 2/3 our total GDP, and larger than any other nation's GDP). It has long been a reality of economics, and a reality in life. I don't think this latest example is anything to be terribly worried about; there are CERTAINLY MAJOR economic problems in this country and this world - and even in this Commonwealth of Virginia - however, we are maintaining consistent and HIGHLY stable economic growth, we have one of the highest standards of living in the world (check the Economist.com for holistic comparisons), and no one - absolutely no one I know (including a number of financially independent students, professors and administrators) has filed for bankruptcy as a result of this latest trend in the housing market cycle. It's something to learn from for investers (read: Buddy Gadams and co.) and homeowners/sellers alike, but it's not their death-knell. It's not an economic or market failure. It's a cycle.

[Sky06]

I agree but look at who reads the pilot. All you have to do is read the comments up there and they are catering to that crowd. I wish we had a more positive paper but I don't see it changing.

[Sky06]

In sincerity, I think the project can - in some form or another - be salvaged, perhaps as apartments, or a more mixed-use project (such as "office condos" and apartments mixed together in various buildings). The location is developable - it's surrounded on three sides by water and has incredible views of the Peninsula and greater Hampton Roads. Someone, or anyone, will want to build there, it's just a matter of time.

[Chesapeake Pirate]

"Rah-rah to infinity and beyond"

Did Buzz Lightyear marry a cheerleader? I missed the memo.

In sincerity, I think the project can - in some form or another - be salvaged, perhaps as apartments, or a more mixed-use project (such as "office condos" and apartments mixed together in various buildings). The location is developable - it's surrounded on three sides by water and has incredible views of the Peninsula and greater Hampton Roads. Someone, or anyone, will want to build there, it's just a matter of time.

(Micro)Economically speaking, even with the slowdown in construction, particularly in single family homes and condos, there will still be demand down the line. It's the most basic of economic principles related to supply and demand: a positive demand factor (population growth) is ongoing in most areas of Hampton Roads and is forecast to continue, thus demand will also increase, eventually. Another positive demand factor, household incomes, is increasing throughout the region (albeit not as quickly as most would like to see), thus, the demand will yet again, in time increase. Now, the price factors come in - they won't reach the levels they had 12-18 months ago again for a long while, simply because it's unrealistic and unsustainable (and was highly speculative); however, they too will increase given sufficient time. Within a few years (in the grand scheme of things - a very brief amount of time) the market will have completely rebounded. Supply temporarily outstripped demand, but it's been reeled back in. With sustained population growth we'll hit an equilibrium point again, then move back into the cycle and back towards rising home/condo prices and rising demand. Like most things - economic, political, social, and otherwise - the housing market is truly cyclical.

In regard to (home) purchases on debt - that is by definition speculative investment; it is one of few investments riskier than the stock market, especially today. But it, too is a component of the economy; consider all the companies, all the cities, towns, townships, counties, states, and nations that make massive purchases on debt - the United States has held an ever-growing debt well above a trillion dollars for decades (almost 2/3 our total GDP, and larger than any other nation's GDP). It has long been a reality of economics, and a reality in life. I don't think this latest example is anything to be terribly worried about; there are CERTAINLY MAJOR economic problems in this country and this world - and even in this Commonwealth of Virginia - however, we are maintaining consistent and HIGHLY stable economic growth, we have one of the highest standards of living in the world (check the Economist.com for holistic comparisons), and no one - absolutely no one I know (including a number of financially independent students, professors and administrators) has filed for bankruptcy as a result of this latest trend in the housing market cycle. It's something to learn from for investers (read: Buddy Gadams and co.) and homeowners/sellers alike, but it's not their death-knell. It's not an economic or market failure. It's a cycle.