But one of my larger areas of concerns has been his/their plan to build residential units on the Western part of the waterfront. (I think it was west.)
Anyway, why am I worried? Well, I'm worried because a residential project--more than any other type of use--can restrict my access to the Waterfront. I've got no problem walking along storefronts or hotel entrances that might enter the water. But somebody's front door? Or back door with a deck overlooking the water. That just doesn't invite foot traffic.
Plus, residents rightfully complain about noise, festivals, trash from Farmer's Markets, etc. I'm not sure residents and a downtown waterfront mix. (And the Project for Public Places agrees. Check out number 7 on the item that Ed Cameron recommended in his recent post.)
I recognize there are condos downtown that seem to co-exist with neighbors just fine (with a few problems here and there.) So maybe my worries aren't justified. But if the waterfront residential units ultimately resemble the condominiums on the other side of Route 1 we my have a problem. They're nice units, but the walk along water through Cashman abruptly ends.
I'm sure all of this will come up in the city's review. So here's another wonder (I wouldn't call it a worry since it's not my money.) Has the housing crunch has impacted the plans for condos or residences along the waterfront. Until I get my sit down with Mr. Karp (no word yet on my earlier invitation but we might get a chat with Ann Lagasse), I'll just keep wondering. But ole faithful Shopping Center Business magazine came through again with a roundtable discussion involving several developers, including Mr. Karp.
The article ran last December, so things have only gotten worse. Check out these figures on Newburyport for some perspective. At least I hope this links to Newburyport data. If not you may need to register and search, but it's easy. Also, check out Zillow.com.
But here was the question I'd like to ask, although I would have inserted Newburyport.
Chryssicas: Steve [Karp], has the downturn in the housing market in Boston impacted your development plans in Westwood?
Karp: No, but I think we will do more rental than for-sale units. There is a pent-up demand for that market out there. Two years ago we would have been developing more condos than rental. We are doing a mixed-use project in Chestnut Hill, but there are a few things going on in that market that make it different. The Filene’s at Chestnut Hill Mall will become a full-size Bloomingdale’s, so they will have Bloomingdale’s at both ends of the mall. The old Bloomingdale’s will become a Macy’s. We are doing a project across the street with Whole Foods and a few hundred thousand square feet of lifestyle tenants and restaurants. We are doing housing, but we will have condos there because we think the Chestnut Hill market is deep enough that there is a demand. We will build two condo towers there that are more a type you would see downtown than in a suburban location.
Check out those figures above from the Warren Group. You'll see condo sales are softening, but not the softest they've been. As for number of sales, this year appears to be far off the pace of 2005, which was red hot, but not completely out of line with other years. Play with the numbers, have fun.
So what's all this mean. No idea. I'm guessing it's still full speed ahead with condos or some other kind of high density residence. But we won't know until we know.
Karp doesn't say much during the talk (and I'm not implying anything by saying that, just observing.) He did make an interesting comment in response to a question about whether or not retailers in mixed-use properties count on business from the residents within the project. The conversation then strayed into the discussion of construction costs, which are going up and up and up.
Jordan: In leasing up the retail component of mixed-use properties, are retailers looking to the residential for demographics or are they looking at the broader demographics of the area?
Sclar: My opinion is that the residential component is the gravy. In a trade area of 300,000 people, you are looking at the people, and the gravy is going to be who lives right on top of you. If you don’t have a trade area, it doesn’t matter how many houses you build on top; it is not going to drive sales.
Karp: The biggest problem is that it is really hard to build these projects with deck parking. You can’t build underground parking in locations where you can’t charge. The costs of construction have gone up so fast the past few years that if it isn’t paid parking and you put too much density in the site, the numbers are beginning to tilt a little bit. Rents are not going up as fast as costs are.
SCB: As developers, have you seen the costs of construction materials increase? Is it preventing you from moving faster? There is competition developing nations that are driving our costs up as well.
Young: It has turned. A few years ago, it was going crazy. The steel price and the price of concrete, concrete block and sheetrock. Now, China is shipping materials back to us. A lot of the materials that we are using are coming from China. I’m told the quality is American standard. Granite, for example. Even with that heavy weight, we’re seeing it shipped from China to Brazil and then to the U.S. — and it is less expensive than domestic granite.
Karp: Don’t get the impression that construction costs are less, because they are not. We can’t get a handle on budgets [because construction costs] move so fast now. Prices are still going up.
Intersting, per Young's answer. Not only is the merchandise in the stores made in China but the stores themselves may be made in China as well. BTW, any of you folks who like to hear shopping mall developers complain will enjoy the first answer.
And yes I'll add this article to the Stuff About Steve Karp column.
No comments:
Post a Comment