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The Lafayette (Site 4)

avery

By avery
in The NC Triangle

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cophead567 Whistle-Stop

cophead567

Posted
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Man! I think my assumption was correct. Would anyone agree? This building is really eye-popping for Raleigh. I think it'll be nice to have in the skyline.

I strongly agree. I'm excited about this one. It has a prime location in the money shot, plus with its location it'll be seen from many angles, driving down western, of course down south saunders, even from 40 i bet. I really hope the hotel and all the shops/restaurants in it are very successful, inspiring future projects like it around downtown.

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dmccall Burg

dmccall

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Dana, my dingbat gland must be larger than normal today b/c I still don't understand what you are driving at.

Ha ha! I'm just saying that we have a great wave of condo projects going up right now. Clearly these are driven by demand - demand for deposits on the units. If those viewing these projects as strictly investments are barred from the demand curve, we'll likely see new construction halted.

But...then again we'd stand less of a chance of having empty buildings with people losing their shirts.

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Jones_ City

Jones_

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Isn't this a self correcting problem? (Assuming reserved units are purchased).

If theres enough supply, flippers (or what ever their called) would have a difficult time competeing with new construction prices. In the short term, are these flippers helping the developer to build the buildings to the sizes their at? How widespread is this? Would current projects get impacted by the loss of these folks?

Flippers create false demand....some potential owner occupants end up paying more than they should (their own fault I suppose to some degree) for a unit. You are right that it does more or less correct itself for periods of time....Raleigh's first real problem with investment flippers was with the cotton mill where introductory prices were something like 60-80k but realtors bought up every unit before the regular public had a shot at them. My understanding is that the Paramount experienced a similar scenario. As some investment flippers sit on units at the Paramount they can neither rent or resell, such activity at West and 222 for instance should decrease.

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Transplant Hamlet

Transplant

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Hell, if the developers can build cool structures like the Lafayette with out flippers, I say -> Go For It!

After all, we do need more options in the DT Condo market, and if these flippers are driving the prices high, lets exhaust that market so the rest of us can afford something.

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yoga Whistle-Stop

yoga

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Ha ha! I'm just saying that we have a great wave of condo projects going up right now. Clearly these are driven by demand - demand for deposits on the units. If those viewing these projects as strictly investments are barred from the demand curve, we'll likely see new construction halted.

But...then again we'd stand less of a chance of having empty buildings with people losing their shirts.

I hear you. I'd rather see a genuine city-ish community than empty part timers that don't add anything to the human part of the equation - which matters as much as the quakity/quantity of design, but no one ever acknowledges it out loud.

We should kick it around over a beer at the Times Bar next week!

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paco Crossroads

paco

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Most buildings offer a reservation for a unit for A couple of thousand dollars but come around in a few months or so and require going to contract with a 5% or more payment to the developer. The developer at a minimum keep your $ for contract and usually have addition rights if you do not go to closing on the unit. Early reservers receive the best price and as reservations and contracts are made the price goes up.

A flipper and any other purchaser has to go to contract and settlement on the unit and then sell the unit. Depending on the market at that time the unit is on the market and sold will determine whether the puirchaser made money on the unit. Don't forget about cost of money through this scenario and taxes after.

Throughout the country in areas where appreciation has been high in the last couple of years people have been entering into contracts and buying houses being built. A lot of these people in today's market are going to get caught short and lose properties in foreclosure or selling for far less. Flipping is a deep pocket game and the player better know the market.

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ncwebguy Burg

ncwebguy

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I didn't see this on the news anywhere, but the city's website says Council approved to sell site 4 for the Lafayette.

It will be a 16-21 story building with 15,000 sqare feet of retail including a restaurant, rooftop pool/bar, etc. set to open in Spring 2009. I hope the six month apprasial doesn't push the cost too much higher than $1.44 million for the half acre... This is just south of the new CC and northeast of Raleigh Memorial Auditorium, so am glad the city is getting a) money for the land and b) a good project that will supply residents, guests, and jobs to help anchor the south end of Fayetville Street.

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Justin6882 Hamlet

Justin6882

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I found this article today that talks about condo/hotel developments and how they are quickly spreading throughout smaller and medium sized cities throughout the country. It mentions Raleigh's two proposed: the Lafayette and Reynolds. It was wrong saying the same developer was doing both, but whatever. Its pretty interesting -

Hotel-condo developments spread into mid-size, smaller cities

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ChiefJoJo Town

ChiefJoJo

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Sometimes it pays to review the topic:

Ok, I am watching the city council meeting on RTN and here is the info on the Lafayette per Greg Hatem:

$70 million project; 1/2 acre mixed use development, 277,000 square feet at 21 stories consisting of 125 hotel rooms and 80 condos. Height to the crown is 263'. Restaurant and retail on first 2 floors, outdoor seating. Restaurant facing the southern end, retail facing the convention center. Hotel sits on top of first two floors, 125 rooms, with 80 condos on top of that. Rectangular shaped with glass balconies. Two square decorative pieces on top of slightly rounded roofline. Restaurant bar on roof with pool that can be reached via an outdoor elevator shaft. Glass elevator shaft changes colors throughout the day. Hatem said today, they would set the shaft to illuminate red for the Canes victory :) Narrower side of rectangular building facing money shot making it appear taller.

10K for restaurant

5K for retail

13K for spa

25K for meeting space.

125 jobs created generating $1.249 million in tax revenues a year.

1/07-4/07 site plan should be completed.

Looking to purchase property from the city and will have a 6 month re-appraisal. They are looking to lease 275 parking spaces in the adjacent city parking deck. They ask that the city does not redevelop the deck for at least 10 years. Empire is also putting up a $350,000 credit if not completed by 4/2009.

Council approves unanimously!

It looks good guys...

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