Level Apartments

[Rover]

Exactly Betts. And that is what may get lost in the euphoria of announcements of a lot of big for-rent developments. If they are real quality and with quality developers who may have an eye for long term investment, and possibly towards eventually turning them condo, then it can work. Otherwise, in 10-15 years we will have a mess on our hands. I hope it all stays balanced and I hope we can truly control the quality level of the construction going on. Developers don't usually pour money into poorly constructed projects once they start to age as it costs more than they can get out.

[Rover]

Downtown apartments are running 98% full with market rates 50% higher than the city average. That indicates there is no shortage of demand.

There is always a cap on demand. We haven't met it, but we also don't know exactly where it is. 10 years ago we thought the demand for high price condos was there too. We see how that changed. Hope we don't over build and I hope we only allow quality construction.

[Just the facts]

Don't be surprised if you see Deep Duece go condo at some point in the next 5 years. By then they will have made back most of the construction cost and by selling them they can escape the long-term maintenance costs. The buyers then pick up a unit with a great location at a reasonable price. This is how it works in an urban environment. The reason it doesn't work out on Penn and 150th is because the location sucks. That is why apartments and subdivision built on the outter fringe look like bombs went off after 15 to 20 years. The whole concept of sprawl is nothing more than operation Rolling Ghetto. When you build towards the center you run out of expansion room so properties don't fall into disrepair.

[Rover]

It doesn't matter what the location. Condo conversion doesn't work unless the structure is perceived to be a fairly quality building. Potential owners don't want to get stuck in buildings with chronic infrastructure problems and to pay increasingly high condo fees for correcting issues the original developer/owner should have fixed. If they want to condo them out they better make sure they get the reputation of low problems and quick/good fixes. It is not just as simple as putting a for sale sign on an apartment and taking orders.

And how it works in urbanized areas is that when cost of new construction is prohibitive, demand is increasing, and rents are also increasing fairly sharply, and mortgage interest rates are low, then renters become buyers. I think we are a ways from that just yet. Maybe in 10-20 years.

[Just the facts]

So a broken gate at Deep Deuce means the entire complex, and probably all of downtown, is shoddy construction?

[BDP]

I guess there is some element of truth in this, but overall, allowable prices are a function of supply and demand.

Which is my point, exactly. I can't speak to the quality of construction at Deep Deuce, but I'm willing to guess it is not the first consideration when someone chooses to live there. It's mainly an attempt to get some semblance of urban living. The is the essential element of the market for that neighborhood. Level and Aloft are increasing the quantity of the things that market considers a priority, so it should only make the demand stronger.

Hopefully, again, this does create motivation for reinvestment by Deep Deuce.

And how it works in urbanized areas is that when cost of new construction is prohibitive, demand is increasing, and rents are also increasing fairly sharply, and mortgage interest rates are low, then renters become buyers.

I think the real factor in that equation is appreciation. Renters should look at buying when there is a disparity between interest rates and appreciation. It has always been kind of interesting how so many people buy here, mainly because it is so cheap, but from a cash flow perspective when considering our modest to crappy appreciation , it may not always be the best thing, especially depending on their opportunities. But, it seems to work mainly because there's nothing good to rent and houses are dirt cheap, as long as you don't mind paying effectively rent to the bank and fixing it yourself when it breaks...

[adaniel]

So a broken gate at Deep Deuce means the entire complex, and probably all of downtown, is shoddy construction?

Rover has a point. Overbuilding based on the NOW in real estate trends is a huge risk that I see right now. I for one would still love to buy a place down there but my choices in my price range are all regulated to renting. It can be a bit depressing to play around on Zillow and see all of the available inventory in my price range in places like Kansas City or Austin.

For what its worth I know several people who lived at Deep Deuce and while most liked it they all said the construction quality wasn't the best. Fortunately the area is viewed favorably and command a high rent, which tends to price out the riff raff. But if for whatever reason views shift it could go downhill in a hurry. Just like any other suburban apartment complex.

[Rover]

So a broken gate at Deep Deuce means the entire complex, and probably all of downtown, is shoddy construction?

Good thoughtful intelligent response. Kudos

[Just the facts]

I can't figure you guys out. You want quality, exclusivity, affordable price, without the market being over built. You might as well wish for world peace. If Deep Duece goes condo the people current renting probably won't be the buyers. Most people are renting for a reason.

[Rover]

I can't figure you guys out.

Shoot.... we can't figure ourselves out. LOL

[Spartan]

Don't be surprised if you see Deep Duece go condo at some point in the next 5 years. By then they will have made back most of the construction cost and by selling them they can escape the long-term maintenance costs. The buyers then pick up a unit with a great location at a reasonable price. This is how it works in an urban environment. The reason it doesn't work out on Penn and 150th is because the location sucks. That is why apartments and subdivision built on the outter fringe look like bombs went off after 15 to 20 years. The whole concept of sprawl is nothing more than operation Rolling Ghetto. When you build towards the center you run out of expansion room so properties don't fall into disrepair.

If there was a like button...

[betts]

Windows and doors are going in on the east and south sides of the complex. They've got at least the first floor of framing done on every side. I'm looking forward to less earth moving equipment as they get the exterior done. I've got red dust everywhere!

[OKCisOK4me]

Nothing going on with this anymore, either?

[SkyWestOKC]

Still moving at a good clip.

[Corey]

They've sent out pre-leasing applications to people on their e-mail list. Everybody else can get in on the applications on the 4th.

[MDot]

Sweet!

[dankrutka]

Nothing going on with this anymore, either?

I understand what you're saying even though this project has moved along really nicely. It seems like there's been no new announcements/developments on this board for months...

[Pete]

On their Facebook page they said they will officially start pre-leasing apartments tomorrow and they've already had a ton of people on their interest list.

They are moving things right along.

[MDot]

I understand what you're saying even though this project has moved along really nicely. It seems like there's been no new announcements/developments on this board for months...

Tell me about it homeboy.

[metro]

Are you related to Thunder?

[MDot]

Me? If me, then no. Lol

[dankrutka]

I wasn't talking about LEVEL. New developments /announcements for OKC in general.

[soonerguru]

I'm slowly beginning to understand Mdot's sense of humor. We need a sarcasm emoticon here.

By the way, is Mdot short for microdot? Because you seem like you may be on acid.

[MDot]

I'm slowly beginning to understand Mdot's sense of humor. We need a sarcasm emoticon here.

By the way, is Mdot short for microdot? Because you seem like you may be on acid.

Yeah, we really do need one.

And no, my name isn't short for microdot and I'm not on acid, I'm sober. =)

[OklahomaNick]

Did you see that LEVEL posted some REALLY cool pics to their facebook page?
They are starting to do some brick work in the dark grey bricks.
Looks cool!

http://www.facebook.com/media/set/?s...8620156&type=1