NW 9th & Walker

[HOT ROD]

I guess I look at it from the standpoint of "building for the future" as opposed to "build for what you have now" because you'll always outgrow these low level developments. And given the rate that OKC is growing, I don't think this would be the optimal approach to density going forward.

here here

[Dob Hooligan]

I guess I look at it from the standpoint of "building for the future" as opposed to "build for what you have now" because you'll always outgrow these low level developments. And given the rate that OKC is growing, I don't think this would be the optimal approach to density going forward.

This is not a combative comment. I have to believe the developer and lender ARE building for the future. They are also constrained by the financial ability of any development to pay for itself in the short, and long, term. I have to wonder what a proper "build for the future" project on this land would entail as far as stories, and cost? For instance, if a 4 story "build for today" project is $4 million, and a 10 story "build for the future" project is $13 million, then where is the money coming from and when will it return on the investment?

[BG918]

This is not a combative comment. I have to believe the developer and lender ARE building for the future. They are also constrained by the financial ability of any development to pay for itself in the short, and long, term. I have to wonder what a proper "build for the future" project on this land would entail as far as stories, and cost? For instance, if a 4 story "build for today" project is $4 million, and a 10 story "build for the future" project is $13 million, then where is the money coming from and when will it return on the investment?

Bingo. Developers will only build what makes sense financially. If the project is too expensive for NOI (revenue after expenses) to cover not only the debt service but also the payout to investors then they won’t build it. There are two ways that becomes different:
1. The city puts some kind of restriction that a certain development must be built - and uses TIF or some other mechanism to help pay for it
2. The economics of the land are such that building more density makes financial sense

[OkieBerto]

Journal Record article about the TIF.

"In addition to the usual challenges that come with developing an urban location, the site has a 13-foot elevation grade and both Cox Communications and AT&T have major fiber optic infrastructure in the alleyway.

“The building can’t be built without relocating that and closing the alley … It’s got to be rebuilt at significant expense,” McKown told the City Council.

Those issues combined with high interest rates and escalating construction costs make it unlikely the project could be built without TIF assistance to increase investor returns, Scott said."

[SpaceGuy]

i know these are early renders, but i just wish this was more interesting overall