Hill, The

[MustangGT]

So the financing they had obtained to move forward was just to complete the units that had already been started? I had assumed it was for the completion of the project as a whole. A bit late to the game, but that bums me out.

This situation is not unfamiliar to those in the know in the business, however who knows what the future may hold. Hopefully it wil be finished eventually but it wil be years n the future.

[betts]

Betts, I have to disagree. The housing meltdown was being discussed as early as 2004, when the market was clearly juiced beyond all comprehension. Yes, it was presaged, even if Alan Greenspan pooh-poohed it at the time (while praising ARMs as a mortgage instrument). Greenspan has since admitted he was very wrong and played a key role in screwing the country.

I agree it was discussed, but I'm not sure how many people believed it would happen. If it had been universally expected, we wouldn't be discussing unsold housing downtown, because it would never have been built.

[Pete]

I'm sure the 18 units would be along he remaining frontage on Stiles, the only suitable location for any type of mixed-use or retail and thus walling off the entire backside of the property with a line of residential units.

Instead, OCURA should force them to complete Phase I then see how things go. At least that way the rest of the property could be adapted for another type of development.

[BoulderSooner]

Sticking to the plan: The Hill developers plot progress on townhomes
By Brianna Bailey
Journal Record
Oklahoma City reporter - Contact 405-278-2847
Posted: 07:09 PM Wednesday, November 17, 2010

OKLAHOMA CITY – After a slow start due to the downturn in the housing market, the developers of the upscale Hill at Bricktown housing development are optimistic they can start building another 18 units and a clubhouse in the next 15 months.

On Wednesday, broker Michael Biddinger, who is marketing the property at 322 NE Second St., presented plans to the Oklahoma City Urban Renewal Authority on how the development will proceed over the next year and a half.

While other downtown housing development projects halted by a downturn turned their eyes toward rental units when the condo market dried up, The Hill plans to keep its units for sale, Biddinger said in an interview Wednesday.

“Our owners are not interested in just capitalizing on downtown housing, whether it be for rent or for sale,” Biddinger said. “They’re interested in developing for-sale, quality product.”

Seven townhome-style units at The Hill have sold since November 2009, and Biddinger expects to have another three under contract by the end of the year.

The Hill is being developed by biotech and real estate entrepreneur William Canfield.

Construction on the 157-unit, $75 million complex wedged between Bricktown and Interstate 235 came to a standstill when the housing market crashed two years ago. The project’s financing dried up, but construction resumed late last year. So far, 24 units at The Hill have been completed and another eight are under construction.

At that pace, it will take years for the entire complex to rise out of the ground, JoeVan Bullard, executive director of the Urban Renewal Authority, said in an interview.

“But the economy is picking up a little,” Bullard said.

The high-end townhouses at The Hill, which range in price from $350,000 to $815,000 for 1,650 square feet to 3,700 square feet, are attracting young professionals and empty-nesters, Biddinger said.

very good news .. and i would bet that the next 18 units will be building 2 .. along with the clubhouse ..

[Pete]

Yes, Building 2 has 18 units... But as I stated, I think they should first finish Buildings 3 & 7, and thus wrap up Phase I.

If and then there is still a decent market for this product, then they could go forward. And if there isn't a market, than the location of Building 2 (the last remaining frontage on the through street, Stiles) could be an entry point to the property behind and allow for a different type of development.

Otherwise, they will have allowed the best part of the property to be cherry-picked, leaving the less desirable parts for someone else to try and pick up the pieces.


OCURA should absolutely not allow this group to hold this property for another 20 years, which is what it would take to develop the entire property at the rate they are going.

[betts]

There are already footings poured for 3 and 7, so I suspect those will be the next ones they start.

[Spartan]

Speculating about some problem OCURA could avoid is pointless anyway.

[wsucougz]

Further, is a clubhouse really necessary at this point? Just one more thing for a tiny condo association to foot the maintenance bill on at some point.

[mcca7596]

Anyone know if they are proceeding on the completion of "phase 1"?

What is the possibility that OCURA might actually release the rest of the site for redevelopment?

[city]

I talked to someone that worked there a few weeks ago... and they said construction was beginning on building 3 and they were going to finish out three units in the big building 8.

[lasomeday]

Are they going to finish the Hill out or is it going to just sit there taking up space?

[Pete]

They've sold two more units since the first of the year, but that's only six total out of 32 constructed.

[lasomeday]

It would be nice if they changed their development and build the rest of it out as mixed use with apartments. I know that will never happen, but if you are going to have a business these days you have to be flexible. Obviously this business model didn't work.

Did the city provide any TIF money for this project?

[betts]

One of the realtors who specializes in downtown told me four more have contracts pending, including one in the new building. She also said they were going to start the clubhouse and pool soon. All that's hearsay. If the developer doesn't mind waiting, it seems as if we will soon have a plethora of rental options. Maybe it doesn't hurt to keep some housing available to buy.

[metro]

It would be nice if they changed their development and build the rest of it out as mixed use with apartments. I know that will never happen, but if you are going to have a business these days you have to be flexible. Obviously this business model didn't work.

Did the city provide any TIF money for this project?

I dont think they did, but it was Urban Renewal land, so they got it dirt cheap.

[Steve]

TIF money was used for doing streets and underground utilities on The Hill.

[Spartan]

Wait Steve, I am extremely confused (and pissed off) about that. As you recall, the reason this project was ever selected in the first place was because they dropped the TIF request at the 11th hour and notifications weren't made to the other competing developers.

[Steve]

The selection of The Hill occurred during a one-year period when I was not covering Urban Renewal, so I don't recall the TIF request being dropped or not. In December city staff released a report showing which TIF projects were performing, which ones weren't. The Hill was listed as failing to meet projections set by the developer.
The numbers:
→Allocation: $2,650,000
→Current increment: $2,682,554
→Projected increment: $48,779,225
→Projected payback: exceeds life of the district

[Pete]

Here is an Oklahoman article from April 22, 2005:

[Pete]

Canfield & Co. also stated in their proposal the townhouses would sell for between $170K and $340K.

Looking at the current listings, there isn't one unit for sale for less than $380,000 and some are $500K.

[mcca7596]

So does anyone remember what the Walnut Hill group's proposal consisted of? I thought someone said in the past that it incorporated retail and office space.

[Pete]

Yes, Walnut Hill (McDermid et. al.) featured rental lofts, live/work lofts along Stiles and for-sale townhomes.

It was also selected as the clear choice by OCURA's paid consultants but The Hill group was allowed to submit last-minute adjustments to their plan (removal of the TIF funds) without notice to the other applicants.

[Steve]

hmmm......

[soonerguru]

Canfield & Co. also stated in their proposal the townhouses would sell for between $170K and $340K.

Looking at the current listings, there isn't one unit for sale for less than $380,000 and some are $500K.

Liars.

[G.Walker]

Canfield & Co. also stated in their proposal the townhouses would sell for between $170K and $340K.

Looking at the current listings, there isn't one unit for sale for less than $380,000 and some are $500K.

The Hill is a big disappointment for residential development in downtown. Where do they come up with the price points? Like seriously, who really wants to pay half a million dollars for a 3 bedroom townhouse with no backyard, that's crazy. Moreover the development doesn't offer any basic amenities for its residents like a pool, clubhouse, gym, etc... For that much money you can have a nice home in Rose Creek or Oak Tree, lol.