OK, I keep referring to how many new apartment units there are in Richmond, Virginia, particularly Downtown/Shockoe Bottom, and wondering if there are enough bodies to fill them. I've decided to tally up the various projects to see how many new units there are online and/or in development. Here's what I have:
SHOCKOE BOTTOM/SHOCKOE SLIP:
1. Bobber Flats, 2001 E. Franklin Street, 41 Units
2. Old Stone Row, 21st and Main Street, 96 Units
3. Engine Company Lofts, 2000 Block of East Main Street, 28 Units
4. Trolley Commons, 2001 East Main Street, 80 Units
5. Cedar Broad Apartments, what I call "The McDonald's Project," 1900 Block of East Broad Street, 204 Units
6. 2001 East, 2001 East Broad Street, 75 Units
10. Monument Construction Building, 1425 Cary Street, 38 Units
11. Harvester Project, Cold Storage Building #6, 36 Units
12. Canal Lofts IV, 18th and East Main next to Have a Nice Day Cafe, 124 Units
12. Genesis Townhouse Project, Union Hill, 150 Units
11. Marcellus Cox Building, 19th and East Marshall, 120-130 Units
TOTAL BOTTOM/SLIP/UNION HILL UNITS: 992-1,002
DOWNTOWN:
1. Berry Burke Building, 525 East Grace Street, _____ Units
2. Montaldo's Building, a/k/a Pasture, East Grace Street, 4 Units
4. Hotel John Marshall, Corner of N. 5th and East Franklin, 238 Units
5. First National Bank Building, 825 East Main Street, 154 Units
6. 8 1/2 Canal, 8 1/2 Canal Street, 160 Units
TOTAL DOWNTOWN UNITS: 556 + Berry Burke
JACKSON WARD/CARVER
1. To Be Named Gilbane Project, 1200 Block of West Marshall, 136 Units
2. Eggleston Property Project, 2nd Street, 31 Units
3. To Be Named, 1325 West Broad, 19 Units
4. Hippodrome, 2nd Street, 29 Units
TOTAL JACKSON WARD/CARVER UNITS: 215
MANCHESTER:
1. Former Mercer Property, 901 McDonough Street, 188 Units
2. Miller Manufacturing Project, 5th and Stockton, 210 Units
TOTAL MANCHESTER UNITS: 398
NORTHSIDE:
1. The Collegiate, Chamberlayne Avenue Just North of Interstate 95, 270 Units
2. To Be Named Virginia Union Project, 2300 Lombardy Avenue, 33 Units
TOTAL NORTHSIDE UNITS: 303
TOTAL UNITS: 2,464-2,474+
If I adjust for number of people in these units, since many are 2-4 bedrooms, it can be anywhere from 3,696 new residents required, using a multiplier of 1.5, to 7,392, using a multiplier of 3. Are there going to be enough new bodies to fill all these apartments? I sure hope so. No one wants to see any of these projects fail, that would be bad for the City of Richmond and the surrounding neighborhoods. But I do have some worries:
- I am sure I've forgotten or missed some new projects.
- This analysis does not take into account condominium projects that came on-line 2008-2009 and have significant rental components. Vistas on the James and Miller & Rhoads come to mind.
- What about the existing apartment inventory? Do new projects just cannibalize the older, not-as-fancy projects?
- This doesn't include two new projects in Scotts Addition, 3600 West Broad and 3200 West Clay (135 units). And I will be shocked if the Interbake Foods Building does not have a significant apartment component. These three projects alone should add over 500 new units in a very desirable location.
- Why are people paying $1,600/month and up for an apartment? That's a mortgage payment on a $300,000 house in the Fan/Museum District/Carytown/Munford/Bellevue/take your pick "hot" neighborhood.
I'd love to hear people's thoughts and comments on the apartment building craze. Do you think there is going to be an oversupply of apartments in the City? Why do people want to rent vs. buy?
Wow, Valerie, you're a LOT more successful with your first job at 21 than I was. I think for many people, spending $21,600/year ($1,800 x 12 months) on rent is excessive. I think you must make a lot of money, have no student loans, and/or have help from parents.
If you are going to be in Richmond for two (2) years, and you buy something that you know you have two (2) exit strategies from - sell or rent - I really just don't understand renting. You can buy something in a desirable neighborhood for substantially less than $21,600 in total annual house payment. In two (2) years, at $1,800/month, you will have thrown away over $43,000, with ZERO return. I think a lot of young professionals just don't understand the market, how cheap money is right now, and have bought the national psychology and doom-and-gloom that owning a house is just too scary in a down market. And hey, the fact that you work for the developer of Miller & Rhoads Residences couldn't have anything to do with your opinion now, Valerie, could it? Since your email address IS from HRI Properties. www.hriproperties.com. [;)]
Posted by: Melissa Loughridge Savenko | August 07, 2012 at 05:11 PM
I dont see that $1600.00 a month on rent is that high... why would you buy something in Richmond if you are only planning to be in the area for a year or so? A lot of students going to medical college in the area are here for 3-8 years.Especailly if they plan on moving back to what ever state they came from. Buying a home would be a little much, so why not rent. The price is about where you live, you really do get what you pay for. I pay 1800.00 a month for a 2 bedroom downtown in the business district (Miller and Rhoads) and i couldnt be happier. I am 21 years old and am not looking to buy right now so renting is my only option. To my knowlegde Miller and Rhoads has been 100.00 percent occupied for the past several months... so doesnt seem that to many people mind paying for quality and great management. So with them being at 100.00 percent that means that 133 units are being occupied here alone. I dont think that any of the other surrounding properties are having trouble either. With the amount of people coming to Richmond for work has grown over the past year and seems to be steadily increasing. My opinion is that they should have all of these properties around this area for all of the business that Richmond is now getting. For some who cant afford 1800.00 for rent i know that prices in the area start at about 800.00 certainly a reasonable price for a unit in this area. I love that the city is coming along and cant wait to see whats next for apartments in the area.
Posted by: Valerie | August 07, 2012 at 04:46 PM
Sea Dream Leather Building is another to fall to apartments. All this is jacking up rent and property values to speculative prices forcing artists and small businesses out of the area for the sake of a bunch of rentals at 30% occupancy.
Posted by: David | March 31, 2012 at 12:40 AM
I don't know that the apartment craze is such a bad thing. Perhaps it might help keep rental rates in check in the neighborhoods apartments are going up. I know for a fact the building I'm in has had rent increases for the apartments that recently experienced turnover.
My unprofessional opinion is older apartments in iffy neighborhoods and older suburban apartments are going to see quality tenants flee in droves.
Posted by: Jason | March 26, 2012 at 08:59 PM
Well, add 77 more apartment units to the Downtown mix, per a BizSense article today. Monuemt Construction and the Edson Companies are purchasing the old Massey Energy headquarters and converting it to apartments. Count now well above 2,500 new/proposed units.
Posted by: Melissa Loughridge Savenko | March 22, 2012 at 09:48 AM