Dania may get 1st condo tower

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Downtown Dania Beach, known for its antique stores and seedy hotels, may soon get its first big condominium tower.

City commissioners late Tuesday approved a site plan for the 13-story condominium, which also will include restaurants and shops on the ground floor.

''This is actually bringing customers to the downtown district, which is so necessary,'' said Commissioner Anne Castro.

For years, Dania Beach leaders resisted large-scale downtown redevelopment like that of Hollywood and Fort Lauderdale. But in recent years, commissioners have warmed to the idea of bringing in new condos and stores as a way to improve the community and bring in more tax money.

''The city of Dania Beach is over 100 years old,'' Mayor Patricia Flury said. ``Although we don't want to be a city known for tall buildings, because that is not our culture, nonetheless we do need some development.''

The condos will be built on the corner of U.S. 1 and Dania Beach Boulevard, where the Pirate's Inn hotel has been for more than 65 years. The 53-room hotel, which also houses a liquor store and a bar, continues to operate as the sale to the developer is negotiated. The sale is expected to be final in August.

Plans for the new development include 305 condos, 20,000 square feet of stores and restaurants and a five-story parking garage.

''That is the best location in Broward County,'' said Dominick Casale, president of DVNY Development, the company working on the project. ``The best thing about it is you could go down and eat dinner, go shopping and walk the streets. It's been sitting there stagnant for the past 25 years. Once this gets off the ground, everything else will follow suit.''

The $75 million project, on which construction could begin by August 2007, will take about 18 to 24 months to finish, but Casale plans to begin pre-selling the studio, one-bedroom and two-bedroom condos in November. Prices for the condos will range from $189,000 to $550,000.

The commission's approval included a few modifications to the site plan.

PARKING SPACES

The development company requested a reduction in the number of parking spaces required for the condominium. City requirements called for 829 spaces. The commission agreed Tuesday to lower that to 651.

The developer will have to submit its final design for approval later.

The city will also require the company to pay a fee, which will go to the maintenance and improvement of parks in Dania Beach. An amount was not decided.

The condominium would be the start of expected new development in downtown Dania Beach. City commissioners still have to consider plans for a 110-unit, 12-story condominium at 109 Park St. and two 14-story condominium towers at 901 E. Dania Beach Blvd.

Flury said the construction of the condos will mean the end of the two-story Dania Jai-Alai sign on top of the Pirate's Inn hotel.

The 51-year-old sign was taken down after it was damaged by Hurricane Wilma in October 2005. The fronton had been fighting to restore it.

AGING HOTELS

The Pirate's Inn is one of two aging downtown hotels that have been the subject of development plans for years that did not materialize.

Another dilapidated building, the Dania Beach Hotel, also has owners who want to tear down the building and replace it with condos. The hotel is blocks away from the Pirate's Inn.

San Jose Sells Parcel for $28.6Mln, Condos Planned

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The San Jose City Council on Tuesday approved a $28.6 million mixed-use residential high-rise project that will add nearly 500 new homes in the heart of downtown.

The agreement calls for City Front Square LLC and Casa Del Pueblo Preservation Partners to pay $28.6 million to the city's Redevelopment Agency, which currently owns the 1.48-acre parcel at 281 South First St.

The land, at the corner of South First, San Carlos and Market streets, is commonly referred to as "Block 8" in downtown.

The property is adjacent to numerous San Jose landmarks such as the Hotel Sainte Claire, Original Joe's and the Hotel Montgomery as well as the Fairmont Hotel, Plaza de Cesar Chavez and the Marriott Hotel.

City Front Square plans to build two for-sale, high-rise market-rate residential towers with a total of 414 units. Casa Del Pueblo Preservation Partners will construct a single high-rise residential building with 245 new affordable units, 165 of which will replace the existing and aging Casa Del Pueblo project, and 62 units in the new project will be reserved for those earning less than 30 percent of the median income.

The City of San Jose will provide a $6.6 million loan for the expansion of the Casa Del Pueblo project to include 80 new apartments for non-elderly individuals and small families.

The new building will replace the existing Casa Del Pueblo apartments, a federally subsidized housing project for very low-income senior citizens located next to the project site on Block 8.

$200Mln Condo Project Proposed for New Orleans

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A Nevada firm has proposed a $200 million hotel/condo project for the New Orleans waterfront, the most expensive proposal for the area since Hurricane Katrina. The firm, Atlantis Internet Group, which has interests in Internet gambling sites, says it intends to develop the property using private capital. The project would consist of a 95-room building, 60 townhomes and a variety of other amenities.

Groundbreaking Set for Austin Condos

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Shonda Novak

Developers broke ground Wednesday on the Shore, a condominium tower on downtown Austin's southeastern edge. When completed, the 22-story building may house one of the city's luminaries: seven-time Tour de France champ Lance Armstrong.

Armstrong, 34, confirmed he is an investor in the $55 million project being developed by High Street Residential, a subsidiary of Dallas-based Trammell Crow Co.

Armstrong also has reserved a unit on an upper floor of the lavish high-rise now under construction at the corner of Red River and Davis streets.

The biking champion also has a house in Central Austin and a ranch in Dripping Springs, which he said he will keep.

The tower will have 192 units, with many (including Armstrong's) offering expansive views of Town Lake and downtown and easy access to the hike-and-bike trail, said Jamil Alam, principal with Trammell Crow in Austin.

Those were selling points for Armstrong.

"I think it is the coolest project in downtown," Armstrong said in a statement issued by his publicist. "Too many projects get announced and too few actually get built; this building is already under construction."

With about half of the units already under contract and another 70 units reserved with a $3,000 refundable deposit, the building is 80 percent committed, said Ian Stonington, the project's sales manager with Dallas-based Al Coker & Associates. The remaining 25 units range in price from $270,000 to $1.35 million.

Twelve units were set aside for buyers earning 80 percent of the area's median-family income, said Russell McDowell, a sales associate with Al Coker & Associates; all were sold to individuals making less than $39,850 a year.

The Shore's residents will enjoy concierge services and other amenities of an adjacent $100 million, 29-story hotel being developed by San Diego, Calif.-based JMI Realty and managed by San Francisco-based Kimpton Hotels. The hotel will have 290 rooms and 55 condominium units on the upper floors with prices ranging from about $500,000 to more than $2 million, said Gregory Clay, senior vice president with JMI.

The Shore is one of more than a dozen condominium and apartment projects either under construction or planned for downtown, where Mayor Will Wynn has said he would like to see 25,000 people living in the next 10 years. About 5,500 people now live downtown.

Other projects near the Shore include the new 13-story Milago condominiums and a $250 million mixed-use project planned by Constellation Property Group.

The first residents are expected to move into the Shore in January 2008, Alam said.

Units in the Shore will include high-end appliances and finishes. The building also will have a 60-foot lap pool on a sixth-floor terrace.

Developers say the Shore also will be the first downtown residential high-rise constructed using the city's green-building standards incorporating energy-efficient technologies.

The number of units already reserved are evidence of the demand for high-rise urban living in Austin, Alam said.

Stonington said the Shore's buyers are a mix of baby boomers, retirees and young professionals. "In general, we're seeing that people desire an amenity-filled lifestyle in an urban environment and that they are tired of driving to the suburbs," he said.

"They want a simple, streamlined existence, and that is how you sell this building," he said.

The Shore is Al Coker & Associates' first project in downtown Austin but probably won't be its last.

"This is our big splash in Austin," Stonington said. "With this resounding success, we're looking forward to continuing to light up Austin's skyline."

Condos Planned for South Bronx

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LORE CROGHAN

 

Affordable housing is going upscale in the South Bronx - where excavation is under way for the area's first elevatored condo building.

The nine-story Orion will rise on Third Ave. near E. 156th St. in Melrose Commons, a 35-block urban renewal zone where a new wave of construction is starting.

Once burned-out South Bronx nabes are seeing a real estate resurgence, as old factories become handsome rental apartment buildings and townhouses sprout on vacant lots.

"This is a breakthrough," said architect Magnus Magnusson, whose firm designed the Orion and has an ownership stake in it. "It will show that the South Bronx is no longer the backwater of New York City."

His firm, Melrose Associates, is one of four partners developing the Orion - and a second condo building set to break ground later this summer.

The quartet includes Nos Quedamos (We Stay) - a community group that got the city to abandon an urban renewal plan that would have evicted thousands of Melrose residents and businesses - and builders Procida Realty & Construction and L&M Equity.

"We believe everybody needs a little piece of something to own," said Yolanda Gonzalez, Nos Quedamos' executive director.

The 60 condos in the brick and cast-stone design at 3044 Third Ave. will have fancy touches like bamboo floors, though most units are for low- to moderate-income buyers.

The developers hope to start the sale process in the fall, said Christine Procida of Procida Realty & Construction.

The builders get tax breaks and grants from the city.

Seven units are for low-income purchasers - who earn $58,320 or less per year for a family of four. A total of 39 apartments are for middle-income buyers - who earn up to $80,190 annually for a family of four - or moderate-income buyers, who top out at $94,770 for a family of four.

Fourteen flats are "market-rate" - with no income restrictions.

Prices are expected to range from around $145,000 for one-bedrooms for low-income buyers to about $325,000 for market-rate three-bedrooms, Procida said.

The developers will coordinate a lottery for buyers with the city Housing Preservation and Development department and the Housing Partnership Development Corp. People who want their names on a mailing list for notification about the start of the lottery should call Procida at (718) 299-7000, extension 221.

The second building is called the Aurora and will have 90 units - 7 for low-income buyers, 62 for moderate-income buyers and 21 market-rate flats.

Boston's South Station Makeover Project Gets Final Okay

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Thomas C. Palmer Jr.,

The South Station area will see monumental changes over the next decade, as a development team led by Hines Interests LP yesterday received the go-ahead to build a 40-story glass office tower, hotel, and other buildings on a block now dominated by trains and buses.

Hines, along with its development partner, TUDC LLC, a subsidiary of Tufts University, intends to begin construction next year on the first phase of a decade-long build-out, 1.76 million square feet of air space over South Station and above and along the adjacent bus terminal.

When complete, the connected complex of buildings will include a sleek tower designed by famed architect Cesar Pelli, a 200-room hotel, condominiums, office space, stores, and 943 parking spaces. It will cost an estimated $800 million.

Some $40 million will be spent on transportation improvements that will almost double the size of the bus terminal. Subway, commuter rail, and bus areas will be more directly connected to each other, juxtaposed with separate spaces and entrances for the condos, hotel, offices, and parking.

Construction on the complex, which has been about nine years in the planning, will begin at a time when the idea of building housing in combination with office and commercial space near transportation nodes -- so-called transit-oriented development -- is popular in Massachusetts.

``This is in my view transit-oriented development on steroids," Dan Wilson, executive director of the transportation group Move Massachusetts, said at a recent meeting about the South Station project.

Yesterday, the Boston Zoning Commission approved changes sought by the developers, the final approval they needed before beginning construction.

David Perry, senior vice president of Houston-based Hines, said he plans to start construction on the first of three phases -- the Pelli tower and transportation improvements -- next year, assuming a tenant can be found for a significant amount of space in the tower.

The Boston office market is steadily improving, and no significant new space is currently being built, though several projects are in various stages of planning. Perry said the renewed demand for office space and completion of a long approval process, which saw many changes to the project, happen to coincide.

``Our planning process has been almost a decade," he said in a recent interview. ``You have to believe in the city and the strength of this location, knowing you have very little control over the timing of the outcome."

A chiseled glass tower, designed by Pelli Clarke Pelli Architects of New Haven will be erected over the back portion of the commuter-rail platform, away from Atlantic Avenue. It was moved from an earlier planned location above the South Station building itself, and is slender so as to reduce effects on the Rose Fitzgerald Kennedy Greenway and the Fort Point Channel area.

``This tower has been sculpted to minimize shadows," Perry said.

The initial development plans for the site called for more than 2 million square feet of additional development over the station, including a 759-foot-high tower, which at the time was criticized as too tall. Yesterday's zoning approval allows a 621-foot tower with 40 floors of office space -- or 41 floors at the same height if the developer chooses to substitute residential condos for some of the office space.

Phases two and three would include residences, a hotel, and a nine-floor office building.

Elkus/Manfredi Architects Ltd. of Boston is designing the hotel and residences. All of the new buildings would have lobbies or public spaces several floors above the transportation levels, accessible by shuttle elevators in lobbies facing Atlantic Avenue.

Although the tower was criticized as too high when it was proposed in 1998, the response to Hines executives' changes through the years has been positive at recent public meetings. ``This is a big improvement," said Ann Hershfang, a member of WalkBoston, a pedestrian advocacy group.

The tower would be the tallest in Boston since 46-floor One International Place went up in 1987.

Renovations Planned for Vacant Detroit Hotel

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Louis Aguilar

The planned restoration of the once-opulent Book-Cadillac Hotel, long a symbol of Detroit's inexorable decline, is being hailed as a sign that the city's downtown resurgence is for real.

The plans to restore the vacant building into a high-end Westin Hotel and upscale condominium complex will be unveiled today in a much-anticipated event at the Detroit Athletic Club.

The project joins billions of dollars in public and private investment that has been poured into downtown the past 10 years, bringing new life to long-empty historic buildings and filling the city's blighted core with new casinos, lofts, restaurants, martini bars and small retail shops.

"We are past the tipping point," said Doug Rothwell, president of Detroit Renaissance Fund, the influential nonprofit fund that is one of the estimated 17 sources of financing for the Book-Cadillac deal. "There is enough of those kinds of things in a pretty condensed time period, that when you catalog it, shows there is critical mass in the right direction."

No one has talked like that about downtown Detroit in years. There remain skeptics about the Book-Cadillac project. The estimated $176 million deal is heavy on loans, is partially funded by Michigan taxpayers and is short on private investment, some say.

Even supporters of the deal say it is putting remarkable faith in two market segments -- a robust hotel scene and upscale living -- not normally associated with downtown. The 67 condominium units are expected to sell for about $300,000. The 455 hotel rooms would join another 1,200 hotel rooms planned as part of the three permanent casinos: MGM Grand, MotorCity and Greektown.

"I still think it's a high-risk deal," said Charles Skelton, head of Hospitality Advisors Consulting in Ann Arbor. "That's not to say it can't work or the belief is unfounded, because these are pretty savvy people behind this project. It's definitely bold."

Many praise Cleveland developer John Ferchill, who has made a fortune in restoring historic buildings in Rust Belt cities.

Big day set for yesteryear's star

Amid 600 movers and shakers, Detroit Mayor Kwame Kilpatrick and Ferchill this afternoon are expected to announce the financial deal that would reopen the 33-story, Louis Kamper-designed skyscraper at the corner of Washington Boulevard and Michigan Avenue as soon as 2008.

It was the city's pre-eminent hotel for six decades; five presidents, famous film stars and high-rolling gangsters stayed there. Books and documentaries are still being made about it, and visitors to local Web sites like Fabulous Ruins of Detroit (detroityes.com) closely follow any rumor and development about the hotel.

The vacant landmark has vexed every mayor since its closing in 1984, including Kilpatrick. In 1993, then Mayor Coleman Young couldn't even raise enough money to tear it down.

In July 2003 Kilpatrick held a news conference in front of hotel to hail redevelopment of the landmark as proof that downtown is on the mend. He vowed it would open in time for Super Bowl XL held last February. That deal, which was backed by a subsidiary of the Kimberly-Clark Corp., fell apart when the project's cost escalated after preliminary site work.

Mayor, developer refused to give in

But Kilpatrick and key staff at the Detroit Economic Growth Corp, the quasi-public group that works on rebuilding the city, never gave up. And they had an eager developer in Ferchill, part owner of the Hilton Gardens Inn in downtown's Harmonie Park.

"You have to give huge credit to George Jackson, (head of the DEGC) and Ferchill," said Dick Buss, senior vice president at National City Bank, which is among the financers. "They stitched together something that utilizes so many different types of funding that we finally got comfortable" with the deal.

Some of the biggest development deals in downtown are in the hands of out-of-towners, including the two big Riverfront projects at the former Uniroyal site and alongside the Renaissance Center and the $45 million plan to turn the Lafayette Building into condos.

That outside interest is another sign that things are changing for the better downtown.

"It used to be that one, maybe two, firms had to take most of the risk," said Atanas Ilitch, president of Olympia Development LLC, the real estate arm of the Ilitch empire.

"But now with so many willing to be part of project, things can get done a lot of faster," Ilitch said.

The Ilitch family were downtown pioneers when they renovated the historic Fox Theatre and then relocated the Detroit Tigers to Comerica Park. Now the family has embarked on another ambitious plan that may include redevelopment of the 1923 Detroit Life building in the historic area behind the Fox. It also hopes to find a developer and major tenant for a five-acre site at Grand Circus Park. The site includes the 1928 United Artists Theatre building and the former Statler Hotel parcel, which is owned by the city.

The Book-Cadillac isn't the only historic building with plans to become a hotel again. The Pick-Fort Shelby on Lafayette is on track for a $73 million renovation that would make it a 204-suite hotel, with a 40,000-square-foot conference center and 63 apartments that may be later sold as condos.

Some question patchwork of financing

The Book-Cadillac's complex financing also reveals how hard it is to get private investors to put their money on downtown Detroit

"What's worrisome is the relatively small amount of (private) capital that has been put up," said Patrick Anderson, a Lansing-based economist that studies Michigan's economy. Financing ranges from conventional loans; federal, state, county and city funding; state tax credits from the soon defunct single business tax, brownfield redevelopment and the never before used new market credit.

"That shows the length Detroit has to go to get a private investor to put up their own money," Anderson said.

Despite Michigan's sagging economy, the city's shrinking population and looming budget deficit, Anderson said downtown Detroit can continue to rebound.

"Detroit's biggest problem has not been the depressed Michigan economy," Anderson said.

"Detroit's biggest problem has been Detroit's economic, political, social and other problems. I see all the activity as a sign of optimism as Detroit is turning itself around."

The planned restoration of the once-opulent Book-Cadillac Hotel, long a symbol of Detroit's inexorable decline, is being hailed as a sign that the city's downtown resurgence is for real.

The plans to restore the vacant building into a high-end Westin Hotel and upscale condominium complex will be unveiled today in a much-anticipated event at the Detroit Athletic Club.

The project joins billions of dollars in public and private investment that has been poured into downtown the past 10 years, bringing new life to long-empty historic buildings and filling the city's blighted core with new casinos, lofts, restaurants, martini bars and small retail shops.

"We are past the tipping point," said Doug Rothwell, president of Detroit Renaissance Fund, the influential nonprofit fund that is one of the estimated 17 sources of financing for the Book-Cadillac deal. "There is enough of those kinds of things in a pretty condensed time period, that when you catalog it, shows there is critical mass in the right direction."

No one has talked like that about downtown Detroit in years. There remain skeptics about the Book-Cadillac project. The estimated $176 million deal is heavy on loans, is partially funded by Michigan taxpayers and is short on private investment, some say.

Even supporters of the deal say it is putting remarkable faith in two market segments -- a robust hotel scene and upscale living -- not normally associated with downtown. The 67 condominium units are expected to sell for about $300,000. The 455 hotel rooms would join another 1,200 hotel rooms planned as part of the three permanent casinos: MGM Grand, MotorCity and Greektown.

"I still think it's a high-risk deal," said Charles Skelton, head of Hospitality Advisors Consulting in Ann Arbor. "That's not to say it can't work or the belief is unfounded, because these are pretty savvy people behind this project. It's definitely bold."

Many praise Cleveland developer John Ferchill, who has made a fortune in restoring historic buildings in Rust Belt cities.

Big day set for yesteryear's star

Amid 600 movers and shakers, Detroit Mayor Kwame Kilpatrick and Ferchill this afternoon are expected to announce the financial deal that would reopen the 33-story, Louis Kamper-designed skyscraper at the corner of Washington Boulevard and Michigan Avenue as soon as 2008.

It was the city's pre-eminent hotel for six decades; five presidents, famous film stars and high-rolling gangsters stayed there. Books and documentaries are still being made about it, and visitors to local Web sites like Fabulous Ruins of Detroit (detroityes.com) closely follow any rumor and development about the hotel.

The vacant landmark has vexed every mayor since its closing in 1984, including Kilpatrick. In 1993, then Mayor Coleman Young couldn't even raise enough money to tear it down.

In July 2003 Kilpatrick held a news conference in front of hotel to hail redevelopment of the landmark as proof that downtown is on the mend. He vowed it would open in time for Super Bowl XL held last February. That deal, which was backed by a subsidiary of the Kimberly-Clark Corp., fell apart when the project's cost escalated after preliminary site work.

Mayor, developer refused to give in

But Kilpatrick and key staff at the Detroit Economic Growth Corp, the quasi-public group that works on rebuilding the city, never gave up. And they had an eager developer in Ferchill, part owner of the Hilton Gardens Inn in downtown's Harmonie Park.

"You have to give huge credit to George Jackson, (head of the DEGC) and Ferchill," said Dick Buss, senior vice president at National City Bank, which is among the financers. "They stitched together something that utilizes so many different types of funding that we finally got comfortable" with the deal.

Some of the biggest development deals in downtown are in the hands of out-of-towners, including the two big Riverfront projects at the former Uniroyal site and alongside the Renaissance Center and the $45 million plan to turn the Lafayette Building into condos.

That outside interest is another sign that things are changing for the better downtown.

"It used to be that one, maybe two, firms had to take most of the risk," said Atanas Ilitch, president of Olympia Development LLC, the real estate arm of the Ilitch empire.

"But now with so many willing to be part of project, things can get done a lot of faster," Ilitch said.

The Ilitch family were downtown pioneers when they renovated the historic Fox Theatre and then relocated the Detroit Tigers to Comerica Park. Now the family has embarked on another ambitious plan that may include redevelopment of the 1923 Detroit Life building in the historic area behind the Fox. It also hopes to find a developer and major tenant for a five-acre site at Grand Circus Park. The site includes the 1928 United Artists Theatre building and the former Statler Hotel parcel, which is owned by the city.

The Book-Cadillac isn't the only historic building with plans to become a hotel again. The Pick-Fort Shelby on Lafayette is on track for a $73 million renovation that would make it a 204-suite hotel, with a 40,000-square-foot conference center and 63 apartments that may be later sold as condos.

Some question patchwork of financing

The Book-Cadillac's complex financing also reveals how hard it is to get private investors to put their money on downtown Detroit

"What's worrisome is the relatively small amount of (private) capital that has been put up," said Patrick Anderson, a Lansing-based economist that studies Michigan's economy. Financing ranges from conventional loans; federal, state, county and city funding; state tax credits from the soon defunct single business tax, brownfield redevelopment and the never before used new market credit.

"That shows the length Detroit has to go to get a private investor to put up their own money," Anderson said.

Despite Michigan's sagging economy, the city's shrinking population and looming budget deficit, Anderson said downtown Detroit can continue to rebound.

"Detroit's biggest problem has not been the depressed Michigan economy," Anderson said.

"Detroit's biggest problem has been Detroit's economic, political, social and other problems. I see all the activity as a sign of optimism as Detroit is turning itself around."

Mixed-Use Complex Planned in Idaho

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A McCall hotelier has announced plans for a $25 million lakefront hotel, condo and retail project along the shore of Payette Lake.

But opponents say the 50-foot tall Grand Payette Hotel would be too high. With McCall considering an 18-month moratorium on tall buildings, it could be years before the project is built - if at all.

Bob Hunt, the owner of the local Holiday Inn Express, hopes to build on 1.75 acres he owns in the lakefront business district. He envisions a development that would include 81 guest rooms, 17 condominiums and 15,000 square feet of first-floor space for retail stores and restaurants.
City officials say Hunt may have to wait while the community reviews McCall's long-term comprehensive growth plan.

"The project only exists in Mr. Hunt's mind, because he has not applied for any permits," said McCall City Manager Lindley Kirkpatrick.
A local group contends it is not targeting Hunt's project specifically and opposes any increase in the height limit.

"My guess is that this is going to turn this town upside down," said Tuck Miller, a member of Save Our Skyline.
Miller said local residents have been fighting with the city council over height requirements for years, worried that McCall will see the kind of high-rise development being proposed elsewhere.

"Right now, Coeur d'Alene is considering an ordinance that would allow 220-foot building(s) along its lakefront," Miller said. "We want to send a message to people that says that's not what we're about in McCall."

Miller said opponents are planning a rally July 15 during which they will float 300 hot air balloons at various heights to demonstrate what McCall could look like if tall buildings were constructed.
Hunt said Save Our Skyline's limitations would "kill the project."

City officials say Hunt could receive a waiver from the existing ordinance as long as he complies with specific requirements, including that the first floor be exclusively retail, that the public have access to the lakefront and that there be an unobstructed view of the lakefront.
The city council reacted to Save Our Skyline's protest at the council's May 22 meeting by instructing the city staff to draft a moratorium on downtown construction that exceeds the 35-foot height limit.

The delay would give the city time to review its comprehensive plan for handling growth, said Roger Millar, McCall assistant city manager for development and infrastructure. The review could take 18 months, putting Hunt's project on hold at least that long, he said.

Millar said McCall will review the proposed moratorium at a July 11 meeting, and the City Council could approve the proposal sometime in August.
"But Hunt is in no hurry," Millar said. "He's indicated that he had no plans to file an application during the period when the comprehensive plan will be reviewed."

Hunt argues that "the benefits the city would get for the extra 15 feet would outweigh the impact."
"Right now, the only place to go is the Whitetail Lodge, and that's two miles west of town," he said. "Our greatest asset is the lake, and there's no other place for guests."

He said the opposition group "stormed" last month's City Council meeting but does not speak for the entire community.

"There are a lot of people who agree with me," Hunt said. "Right now, it's one percent of the people doing 99 percent of the yelling."

2006 Best Places to Work Award

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U.S. Condo Exchange nominated as a "Best Place to Work in South Florida"

 

"Good management and leadership have formed our entire team into a magnificent ball of positive energy, which makes each and every one of us go the extra mile for the good of the company"

US Condo Exchange Hires Real Estate Internet Marketing Expert as VP, Developer Sales - Developers Increasingly Turn to Internet for Sales

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Miami, Fla. -- US Condo ExchangeT, LLC, www.uscondex.com, a global advertising portal and international multiple listing service for condos today announced that Peter Stein has joined the company as Vice President of Developer Sales. Mr. Stein will serve as a liaison to developers, providing advertising services that reaches millions of condo buyers both domestically and internationally through the US Condo Exchange website. He brings nearly 20 years of technology and sales experience to the firm and is expected to play a key role in developer condo sales. Previously, Mr. Stein had extensive experience with real estate technology applications, providing developers with web based map applications similar to Google earth, but specific to real estate development; helping find land for acquisition and development opportunities.

 

"Mr. Stein brings together real estate experience with an entrepreneurial technology and internet marketing background, providing a perfect fit for US Condo Exchange," said Richard Swerdlow, Chief Executive Officer of US Condo Exchange.  "Having worked extensively with the development community in the past, we expect him to accelerate our momentum in helping developers transition to the internet to help sell condominium units."  

 

Prior to US Condo Exchange, Mr. Stein served as South East Regional Director of Sales for Digital Map Products, a California based map-technology firm that provided a web-based Geographical Information Systems (GIS) platform for the identification of land for potential development. He also capitalized on his extensive knowledge of the commercial real estate sector when previously working at Marcus and Millichap and Miami-based Vikor Group, LLC. At both firms, he focused on opportunistic land acquisitions using technology, including having created software for those purposes.

 

Previously, in 1999, Mr. Stein founded a successful internet venture, Web Genius Corp., a search engine optimization company focused on creating web traffic to his client's websites. The firm promoted some of the biggest web industry leaders including eBay, AT&T Wireless, Prudential Real Estate Worldwide and Hotels.com. Mr. Stein sold the company after establishing its market presence and a track record of success.  He received his B.A. in Business Marketing and Communications from Boston University in 1990.

 

 

US Condo Exchange, www.uscondex.com, is the global advertising portal and international multiple listing service for condos. US Condo Exchange currently has listed over 70,000 condos located in the U.S. and in 37 countries around the world, valued at over $30 billion. The website cost-effectively delivers unparalleled international exposure to developers, brokers and for-sale-by-owners through the seemless distribution of all its listings to a global network of real estate websites visited by over 15 million viewers per month. The US Condo Exchange also features a simple and automated self-listing process, as well as  website partnerships with major media companies to automate the listing of for-sale and for-rent condo ads.

 

Is it the End for Florida-the Sunshine state?

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Ginetta Vedrickas

 

The Sunshine State may be a favourite for us sun starved Brits, but many tour operators are reporting a downturn in holidays prompting price slashes. Some estate agents too are finding that sales are down so will Florida continue to attract the British market or is the love affair over?

 

Irish born Garrett Kenny moved to Orlando, Florida in 1996 where he runs Coldwell Banker Team Realty's Davenport branch. He too has found that sales, particularly of new build, have recently fallen: "Hurricanes have been a factor and have scared people away but it's really prices that are the chief reason. British buyers just can't afford to pay $350,000 for a property which they may use for just three or four weeks a year."

 

Kenny estimates that, on average, prices in his area have risen by around $100,000 over the last eighteen months with properties at the top end rising more steeply He cites his own house as a typical example: "I bought it in February 2005 for $845,000 and it's now on the market for $1.3 Million."  Kenny says that canny investment, mainly from British and Irish buyers, have caused new build sales to falter: "When developers are trying to sell the final properties within their developments they are competing with buyers who bought eighteen months ago. A builder may price their final homes at $390,000 but an investor who bought at the start of the project can sell on for $370,000 and still make a tidy profit."

 

Supply is also affecting the market: Coldwell Banker currently has around 250 properties for sale listed on their books, whilst listings usually hover at around one hundred. New build sales may have fallen but this is pushing British interest into other areas and Kenny recently sold twenty- four warehouse units for $260,000 with five-year leaseback terms mainly to Irish and British investors who are attracted to the potential of the long-term commercial market. "People are still moving to Florida and they need goods and services, hence the demand for commercial units."

 

British visitor figures may be down but Florida, and in particular Orlando, is still one of the most visited destinations in the world. In 1996, 48 million visitors flocked to the southern state but last year the figures rose to 82 million. Buyers looking for rental opportunities are commonly advised to buy no more than twenty minutes from the main parks in 'vacation zones' but anyone who isn't reliant on holiday rentals will pay less by buying in a 'residential zone' further out where they can still let the property on a long term basis. Coldwell Banker are selling villas in Lake Wales, thirty minutes south of Disney, where four bedroom detached houses cost $305,000. "You still get a lovely house and long term rentals are strong as so many people are moving here," Kenny advises.

 

The company recently branched out into fractional ownership to entice a sluggish British market, which seems currently unable, or unprepared, or to pay top prices. The first fractional ownership scheme to launch in 'the Sunshine State', buyers will have full legal title to 25% or 50% of the property and its rental income, at a fraction of the purchase cost. $65,000 buys a quarter share of a two-bedroom condominium at Orlando's Secret Lake, a development of eighty on Highway 192, just four miles from Disney and within easy commuting distance of major Orlando attractions. "Not only are the buying costs reduced in proportion to the level of ownership, but maintenance costs are also obviously shared accordingly. With four owners each promoting the property to friends and family, the rental occupancy is likely to be high. And to ensure that the scheme is hassle -free, we provide all buyers with a free management service for the first year," adds Kenny.

 

Buyer Dennis Wiseman from Nottingham has organised his own fractional ownership scheme by buying a new four bedroomed villa in Kissimmee with his brother and sister in law: "Neither of us could afford to buy a house on our own so we've decided to buy together which seemed to be the best solution. The dollar's pretty weak at the moment so we decided to go for it." The Wisemans paid �210,000 for their property and intend using it for as much of the year as possible: "Between us we've got five children ranging from two years up to fifteen in age and they all love the theme parks. Florida has always been our favourite place for holidays, we used to go there even before the children were born, and I'm sure we'll carry on enjoying it long after they've left home."

 

Dennis and wife Clare enjoy other aspects of central Orlando such as the great shopping, golf and the climate and they intend letting the property in the near future: "If we like it then I'm sure that others will too. Orlando gets tons of visitors from all over the world so we'll definitely rent it out but will start by renting to friends, family and colleagues and see how we get on." The couple believe that the house will prove to be a good investment: "We know that prices have gone up an awful lot in the last couple of years and probably won't rise as quickly in the near future. As more people move to Florida than leave, I'm sure that house prices won't fall. We're in this for the long term so minor fluctuations shouldn't affect us too much."

 

US Condo Exchange's Max Dalziel sells only condominiums, apartments or townhouses on developments which share communal facilities. He hasn't noticed a major downturn in sales and feels that, in comparison with stand-alone villas, condos offer value: "This way you're sharing the cost of the concierge, the pool etcetera so it works out a lot cheaper."  However, Dalziel describes the current situation as 'a stand off' as buyers seem unwilling to pay sellers' asking prices: "British buyers are now very sophisticated and are heavy internet users. They've done their research and know the market. Sellers are currently unwilling to reduce and buyers are unwilling to pay high prices. Like any market there are peaks and troughs but this is still one of the best -loved destinations in the world."

 

 

Developer Plans Hotel, Condominium Towers on Town Lake

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Shonda Novak

An Australian developer plans to build two skyscrapers, one a luxury condominium tower and one a hotel, anchoring a $250 million project that would transform the skyline along Town Lake downtown.

The project is slated for the southwest corner of Red River and East Cesar Chavez streets. Constellation Property Group has a contract to buy the three-acre site, across the street from the Austin Convention Center, from local developers Perry Lorenz and Robert Knight.

Constellation's condo and hotel towers each would be about 30 stories. The project also would include ground-floor retail and an office building of about eight stories.

Part of the land was once envisioned as the site of a headquarters for software maker Vignette Corp., but that project evaporated with the tech bust. In the past year, however, rising demand for downtown living has spurred new interest in property east of Congress Avenue.

The 13-story Milago condominiums on Rainey Street opened in May. Ardent Residential plans an apartment and condominium high-rise adjacent to the Four Seasons Hotel. High Street Residential is developing a 22-story condominium/hotel project at Red River and Davis streets.

Constellation President Eugene Marchese said he expects the land sale to close in September.

With the necessary zoning in place, construction could start in mid-2007 and take about three years to complete, said Chris White, senior associate for Marchese + Partners International Pty Ltd., which designs Constellation's condo projects.

White said the designs would involve slender towers built above a several-story podium level. The so-called point tower approach allows for high density without blocky, view-obliterating structures.

"They'll be pretty special buildings to anchor that end of downtown," Marchese said.

Marchese said Constellation is negotiating with two hotel operators but declined to identify them, citing confidentiality agreements.

Constellation has another ambitious project in the works, at the northeast corner of Interstate 35 and Riverside Drive. If the City Council approves a needed zoning change today, the company plans to start work soon on the complex, which will have four condominium buildings of descending heights, with an 18-story tower on Riverside and four-story buildings along the shore.

The new downtown project, tentatively named Red River, is bounded on the west by Waller Creek, where city officials are trying to revive plans for a flood control project. The goal is to open the door to development that could result in an Austin version of San Antonio's popular River Walk district of cafes, shops, hotels and other attractions.

Constellation plans to meet with the city next month to discuss Waller Creek upgrades, Marchese said.

"We're excited about what they're doing, and they're certainly going to be excited about what we're doing," Marchese said.

The site's proximity to Waller Creek was one of its selling points, White said.

"Certainly the activation of Waller Creek is a critical element to the success of (our) project and will really open that area up to the public," White said.

Mac Pike, chairman of the Sutton Co., an Austin-based real estate development company, agreed.

"It's a great site that our company has looked at over the years, and we think that a project such as Constellation's could transform that area into a very viable retail/mixed-use destination in downtown."

A collection of small buildings on the site would be razed for the project.

Constellation's project is one of more than a dozen residential projects planned or under construction downtown as the city works toward a goal of having 25,000 people living there in the next 10 years.

As with other downtown residential projects, it costs to live in a vertical neighborhood. Marchese said one-bedroom units could start at about $350,000; two-bedroom units could start between $400,000 and $500,000; and units on the upper floors could range from $1.5 million to $2 million.

Austin is one of four U.S. cities in which Constellation has acquired land for condominium developments. The others are Phoenix, Las Vegas and San Diego.

Marchese founded Constellation 12 years ago in Sydney and has developed about 10,000 condominium units in Australia, he said.

Palm Springs, Calif., Hotel Sells, $50Mln Renovation Planned

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By Jillian S. Ambroz

The Palm Springs Riviera Resort & Racquet Club hotel in Palm Springs, Calif., has just traded hands and is getting a $50 million makeover.

A venture between Phoenix firm HBF Holdings LLC and Noble House Hotels & Resorts acquired the property last month for $25 million from Carpenters Pension Trust. The deal was brokered by Atlas Hospitality Group of Costa Mesa, Calif.

RockBridge Capital of Columbus, Ohio, is believed to have provided acquisition financing. Details could not be learned. RockBridge is also said to be involved in providing financing for the renovation as well.

The new owners have some big plans for the hotel, which in its heyday served the likes of the Rat Pack, a long list of U.S. presidents, and even the King himself, Elvis Presley.

The venture is looking to bring the property back to its original grandeur and raise the caliber of the boutique hotel to that of a four-star or four-diamond property. It also plans to add a residential component to the 21-acre site.

For starters, the venture plans to slash the number of hotel rooms to 400 from 476 to employ some larger suites and different room lay-outs. It will also completely reconfigure the public areas, redoing the lobby and adding a couple of bars. There's even talk of adding a bowling alley to the lobby.

The hotel has 50,000 square feet of meeting space. The new owners may convert the smallest ballroom, about 5,500 sf, into a spa.

HBF and Noble are contemplating getting a change-of-use permit to allow for a residential condominium development on the five-acre back parcel of the property. That area holds tennis courts, an 18-hole putting golf course and the former Bono's restaurant, previously owned by the late Sonny Bono. The size and scale of that project could not be learned.

There had been talk of franchising the hotel under a national flag, such as Sheraton or Intercontinental. But it will remain independent and operated by Noble House, which is based in Bellevue, Wash.

The hotel, which sits at 1600 North Indian Canyon Drive, is one of the few properties in the area owned fee-simple. Much of the property in the area is operated on ground leases with Native American groups that own the land beneath them.

The hotel closed at the end of May for renovations. It is slated to re-open about 18 months from now.

Condo plans Christen Colfax project

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By Margaret Jackson

Len Goldberg will break ground Thursday on the first condominium project under Denver's Main Street zoning plan.

The Blueprint project on East Colfax Avenue at Madison Street has 39 condominiums priced from around $150,000 to $400,000. The building, expected to be completed next summer, will have ground-floor retail, perhaps a market.

The building will provide a driver, a concierge and dog-walking services. Goldberg also plans to give Vespa scooters to condo buyers.

"I'm going to try to bring more of a New York-style of living with some of the amenities I'm offering," said Goldberg, head of Place LLC.

The Main Street plan covers properties along Colfax from Sherman to Albion streets. It is designed to encourage developers to place parking lots behind developments and requires storefronts to be along the sidewalk and have a certain amount of window space.

"I've always liked the diverse nature of Colfax," Goldberg said. "There's good and bad, but I just felt change would come sooner rather than later."

Tharaldson Purchases Vegas Casino Parcel, Plans Mixed-Use Project

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By JENNIFER ROBISON

Just months after it bought the Westward Ho on the Strip, Centex Destination Properties has ceded most of the property to a partner involved in the purchase.

And plans for the site have shifted from a high-rise condominium project to a $1.8 billion mixed-use resort tentatively set to include 1,000 condominium-hotel units, 600 residential condominiums, a 600-room hotel, an 80,000-square-foot casino and 200,000 square feet of retail.

"It sort of goes along with what everyone else is doing, with what the Stardust is planning next door (with the $4 billion Echelon Place) and what MGM (Mirage) is doing (with the $7 billion Project CityCenter)," said Gary Tharaldson of the Tharaldson Cos., a North Dakota business that is the new majority owner of the Westward Ho site. "It's the only use you can build when you pay the kind of money we paid."

Centex Destination Properties and Tharaldson bought the Westward Ho parcel together for $145.5 million in September, with Centex as the managing partner. Centex Destination Properties is a subsidiary of publicly traded Centex Corp., a Texas home builder with a market capitalization of nearly $6 billion and $14 billion a year in sales.

In March, a separate Tharaldson business shelled out $170 million to buy all but one acre of the 15-acre plot. Centex continues to own the one-acre sliver that Tharaldson didn't buy.

David Atwell, a real estate broker specializing in properties on and around the Strip, said the land's location could boost its prospects.

"It's dynamite. It's between two major hotels," Atwell said. "They're not making any more Strip property. It's like having gold bars in the bank."

Tharaldson said he wasn't sure when construction on the now-vacant Westward Ho site would begin.

However, he said he was readying plans for county approval and preparing for the construction-permitting process. He noted that it took two years to finish planning and development paperwork and begin construction on the Bond, a five-story, 118-unit timeshare a Tharaldson affiliate is building near Russell Road and Interstate 15. The Bond is scheduled to open in 2007.

Tharaldson said he will finance the construction of the Westward Ho land's condominiums through his existing business.

Because he hasn't owned a gaming property before, Tharaldson said he's considering a joint venture on the casino with an experienced industry operator. If he strikes such an agreement, Tharaldson said, he'll seek casino-construction funds from institutional investors and banks on Wall Street.

The 24-year-old Tharaldson Cos. encompasses a multitude of businesses. A development division builds hotels, while a property management entity operates 355 hotels with 6,000 rooms in 36 states under nameplates such as Marriott's Residence Inn, Courtyard and Fairfield Inn brands and Hilton's Hampton Inn and Homewood Suites concepts. Tharaldson has also built and operated Holiday Inn Express and Comfort Inn properties.

In Las Vegas, Tharaldson developed four hotels clustered around Russell and Interstate 15: Las Vegas Courtyard, Las Vegas Fairfield Inn & Suites, Las Vegas Holiday Inn Express and Las Vegas Residence Inn.

On March 31 -- the same day Tharaldson closed on its majority takeover of the Westward Ho property -- Whitehall Street Real Estate Funds bought 130 Tharaldson hotels for $1.2 billion. Tharaldson said Whitehall is under contract to buy 10 more of the company's properties.

Whitehall, a Goldman Sachs-managed real-estate investment firm, has retained Tharaldson as the hotels' property manager.

Tharaldson is also slowly unloading its ownership interest in Urban Village, a mixed-use project that Centex Destination Properties is developing on Las Vegas Boulevard South near Cactus Avenue.

Urban Village will include about 2,700 homes. C.J. Julin, vice president of marketing for Centex Destination Properties, said it will also have a "resort-style amenity and club" and commercial space with restaurants, entertainment and retail. Centex officials haven't yet planned the size and design of Urban Village's commercial space.

"With I-15 right there and a large part of the Las Vegas market being from Southern California, the access point with the Cactus interchange that's going to be put in is exciting," Julin said. "We're not going to have a casino, but casino developers are in that area, and with the proposed airport location (in Ivanpah), the South Strip is really a great place to have a development in Las Vegas. We're excited about the opportunity we have down there."

Tharaldson assembled the 48.6-acre Urban Village site in 2004 for about $71 million, Clark County Assessor records show.

Tharaldson said he has sold about 30 percent of the site to Centex, and will spin off the rest of the property to the home builder as it builds out the land.

Julin said company officials shifted their efforts from the Westward Ho parcel to the Urban Village project because Urban Village is further along in the development process and will enable Centex to sell homes sooner.

The company is already accepting reservations for its four-story brownstones, which will range from 870 square feet to 1,805 square feet and are priced from $375,000 to $795,000. Grading on the site began in May, and residents will move in about two years from now.

By contrast, it could take up to three years to obtain plan approvals and building permits on a high-rise condominium tower, and an additional two years to build the property. That places residential occupancy about half a decade away.

Tharaldson said investors frown on publicly traded companies that hold undeveloped land for several years, and the pressure to "turn their money every four to six months" led Centex officials to approach him about buying most of their share of the Westward Ho acreage so they could focus on Urban Village.

"Wall Street doesn't like the time it takes to build a high-rise," Tharaldson said.

Julin declined to discuss any profit Centex made on flipping its Westward Ho holdings.

But Tharaldson said the $24.5 million difference in the property's purchase and sale prices likely wasn't the quick profit it looks to be on paper.

First, while the Centex purchase closed in September, the sale price was likely negotiated several months earlier, he said. Thus, it took well over six months for the price to jump from $145.5 million to $170 million.

Second, Centex demolished the 700-room Westward Ho.

"Centex tore the building down and incurred some additional costs during that period," Tharaldson said. "It's not all profit."

Atwell agreed.

"Any time you can sell for more than you paid, it's worthwhile, but I think this was more a prearranged deal for (Centex)," Atwell said. "I don't think anyone walked away making a lot of money on it."

Tharaldson said that though he's committed now to building his mixed-use resort, he wouldn't rule out selling the land if its value jumped significantly.

"You've always got to be taking a look at what your best options are," he said. "If prices continue to rise, the nice thing is, you always have the option of exchanging it for something else. I think you've always got to keep your options open. But from the day I bought it, it had casino rights, and I was going to figure out a way to do that part of it."

Demonbreun condos in works

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By CHAS SISK

A Music Row developer is planning a 14-story condominium and retail project on Demonbreun Street a block east of the roundabout.

Jim Caden has proposed 106 condos and 5,300 square feet of retail space next door to the strip of shops and restaurants that he built on the 1500 block of Demonbreun four years ago. City officials have approved designs.

Units in the development, called The Rhythm at Music Row, will sell for $230,000 to $600,000. With units ranging in size from 780 square feet to 1,440 square feet, the project is meant to be an alternative to similarly priced developments in the Gulch and elsewhere in town.

"This is attractively priced for young professionals," Caden said.

The building will stand on the north side of Demonbreun, on the site of the headquarters of Nashville Lifestyles magazine and an adjacent parking lot. It's just down the block from the Two Doors Down sports bar, The Tin Roof nightspot and other restaurants and clubs.

It joins a wave of development along Demonbreun, which city officials are trying to promote as an arts district.

"It's showing that midtown, downtown is coming back," said John Eakin, a Nashville developer who is working on an office, retail and condo project nearby.

Wakefield Beasley & Associates, a Norcross, Ga.-based architecture firm, designed the building, which will feature a three-story parking garage, a swimming pool and other amenities typical of downtown Nashville condominiums.

Financing for the $30 million project is still being finalized, but Caden and his partner, Nashville developer and former fast-food franchisee Rhett Smith, expect to start reserving units July 15.

Construction could start as early as this fall. Caden and Smith hope to open in 2008.

Building to Become Condos Chicago Firm to Convert Waukesha Apartments

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By TOM DAYKIN

An apartment complex in downtown Waukesha has been sold to a Chicago development firm, which plans to convert the rental units into condominiums, it was announced Thursday.

The Landing, which has 116 units at 100 E. Main St., was purchased by Tria Properties LLC for $12.3 million, said Matthew Whiteside of Marcus &

Millichap Real Estate Investment Brokerage Co. Whiteside brokered the sale.

Tria Properties plans to sell the units for around $160 per square foot, or roughly $114,900 to $206,900, said Alex Gershbeyn, Tria's owner.

The Landing is the first Milwaukee-area development for Tria.

The Landing's one-bedroom units range from 718 to 811 square feet, and the two-bedroom units have 1,042 to 1,293 square feet. The apartments currently rent for $725 to $1,260 a month.

The Landing was sold by Waukesha developer Bryce Styza, who completed the project in 2002.

The four-story building overlooks the Fox River and includes an indoor swimming pool and spa, underground parking, meeting room, fitness center and washers and dryers in every unit.

The development becomes the latest in a series of Milwaukee-area apartment communities, totaling nearly 800 units, that are being converted to condos.

Demand for the condos is largely fueled by consumer mortgage interest rates that remain relatively low.

The projects include the 275-unit Landmark on the Lake apartments, 1660 N. Prospect Ave., which are being converted by Chicago-based NVG Residential Inc., and the 169-unit Blatz Apartments, 270 E. Highland Ave., which are being converted by local investors Fiduciary Real Estate Development Inc. and Ruvin Development Inc.

Hypo Real Estate Syndicates Vegas Condo Loan

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June 26, 2006

Hypo Real Estate Capital Corp. has completed syndicating $121.3 million in construction financing on the Sky Las Vegas residential condominium property on the Las Vegas strip. Hypo, last year, had provided $216.3 million in financing to Sky Las Vegas Condominium Inc. for the property's development, which is expected to cost $325 million to complete. Sky Las Vegas is owned by David Pourbaba, M. Aaron Yashouafar and Solyman Yashouafar. The 44-story property will have 405 upscale condo units, 43,500 square feet of retail space and a parking capacity of 702 vehicles. It sits near the Circus Circus Hotel on the Vegas strip. When construction started last year, the units were 75 percent pre-sold.

The Two Towers

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By :HUGH R. MORLEY

Two 500-foot towers with 901 housing units will rise above the Jersey City waterfront as a more affordable alternative to Manhattan, two developers announced Wednesday.

Red Bank's K. Hovnanian and Chicago-based Equity Residential said they each will build a tower on a 1.76-acre parcel bought from Hartz Mountain Industries of Secaucus for $70 million.

The two will target different markets. Hovnanian will build 420 condominiums, mostly one- and two-bedroom apartments. At the lower end, studios are expected to sell for $300,000. And a small number of penthouses will go for $2 million.

Equity Residential's tower will contain 481 apartments. Studios will likely rent for upward of $1,900 and two-bedroom units will probably go for more than $3,000, the company said.

The towers are scheduled to be completed in spring 2009.

Both developers said they expect considerable demand for the units, despite indications that the real estate market is slowing down.

"We believe it will appeal to working professionals seeking proximity to Manhattan, without Manhattan prices," said Megumi Brod, an Equity Residential vice president.

She said it is too early to say how much cheaper the New Jersey units would be than those in New York. But Hovnanian said it expects the condominiums to be 40 percent to 60 percent cheaper than comparable apartments across the Hudson River. The company said that's one reason it is bullish on New Jersey's residential market, especially along the Hudson County water-front.

Another reason is a trend of suburbanites moving to the city, including many older couples whose children have left home, said Randy Brosseau, Hovnanian's area vice president.

"They no longer need the larger residence," he said.

"And they are looking to downsize and have a terrific access to the city in a terrific new modern condo or town home.

At the same time, he added, Jersey City has become a more attractive place to live.

"We have reached a tipping point," he said.

"We see a lot of improvement in retail and lifestyle, and it's generally a much better place to live now than it was 20 years ago, even five years ago."

Still, there is plenty of local competition for buyers. Just a few blocks away, Donald Trump is building more than 850 up-market units in two towers.

Farther north along the coast, Hovnanian this weekend will begin selling 268 loft apartments and 68 town houses that the company is building in West New York, among several other projects under construction on the waterfront.

Scott Selleck, a broker at NJ Gold Coast Real Estate in West New York, noted that the Montgomery Green condominiums nearby has yet to sell out.

"It's a risky situation," he said. "There is a possibility of oversupply. It may be difficult to move those condos."

He said there is a big demand for rental units in that area, however.

Hartz Mountain said it had planned to build offices on the site since 1999.

James Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University, said: "It doesn't seem as if there is a need for new office construction along the waterfront."

In contrast, the high residential prices in Manhattan have created a significant spillover demand in Jersey City, as people look for cheaper alternatives, he said.

Noting that the Trump building is nearby, Hughes said:

"It's going to be competitive, probably. But it suggests there is a new confidence on the waterfront that it is now a viable, established market for residences."

LeBron offers new digs

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By JAY MILLER

LeBron James' business team came through with a big win today for the Glenville neighborhood on Cleveland's East Side.

To a standing-room crowd of about 150 people packed into a tent in the pouring rain, the Cavaliers basketball star unveiled Parkside Townhomes. It's a $4.7 million, 20-unit strip of upscale condominiums at East 101st Street and Superior Avenue that LRMR Development Co. - the company Mr. James is helping to bankroll - is building.

Mr. James described the effort as "bringing good things to the 'hood."

The first phase of the townhomes will be available in the fall. Prices for the 2,000-square-foot-plus units will range from $260,000 to $325,000.

"We never had an opportunity when we were growing up to have people put up three-bathroom, three-bedroom houses" in our neighborhood, marveled Mr. James. "It was one bedroom, one bathroom, one door."

While it was Mr. James' drawing power that brought the crowd to Glenville and the wealth he has generated as a basketball player that was important to making the project happen, the basketball phenomenon credited his partners and friends, especially Glenville native Richard Paul, with making the project happen.

"We're four young men determined to making this a better place for the people of Akron and Cleveland," said Mr. Paul, a graduate of Benedictine High School.

LRMR Development is a company comprised of Messrs. James and Paul, as well as Randy Mims and Maverick Carter. Messrs. James and Carter were high school basketball teammates. Mr. Mims is a James family friend and Mr. Paul met Mr. James when they were in high school.

In addition to LRMR, financial partners in the deal are National City Bank, National City Development Corp. and the city of Cleveland's Housing Trust Fund. The homes also will be eligible for 15-year tax abatement.

$143M Converts Metropolitan Into Condos

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By Bonnie Grota

CHICAGO-A-$142 million construction loan has been awarded to Louis D. D'Angelo of Metropolitan Properties of Chicago LLC, for the condominium conversion of the 30-story office building and adjacent eight-story building at 310-318 S. Michigan Ave. The two properties will be converted into 248 condominium units.

The 310 building is known as Metropolitan Tower and was built in 1924. It was designed by the architectural firm of Graham, Anderson, Probst & White. When the repositioning is complete, the tower will offer 242 units and four floor plans with varying finishes and price points. The second building, known as Richelieu Flats, will be developed into a six-unit condominium tower. Plans call for the conservation of the building's fa�ade and front one-third of the heavy timber building. Floors one and two will be retail, while floors three through seven will be converted to 2,600-sf, three-bedroom, 3.5-bath condominium units. Each of these condominiums will have its own three-car garage. Floors seven and eight will be combined into a single 6,600-sf. unit. Once finished, amenities will include a 24-hour doorman, a fitness center, event room, secure parking, receiving room, indoor bike storage and dry cleaning pick-up service.

The structures are located in the South Michigan Boulevard Historic District, which was established by the City of Chicago in 2002. The district extends from 11th Street on the south to Randolph Street on the north. The Michigan Avenue "Streetwall" of historic properties date back to the late 19th and early 20th centuries. The historic designation will prevent future building demolition in the immediate neighborhood for new development.

Beacon Realty Capital Inc. arranged financing for the project, and Babcock & Brown provided $26.5 million in mezzanine debt. Fremont Investment & Loan provided the construction loan. Scott Manlin, vice president and regional manager at Fremont, says that to structure the loan the firm underwrote the real estate as well as the issues surrounding adaptive re-use of historic buildings. Fremont then created a loan for a project that includes two historic properties, according to Manlin.

Crescent Fires Up $125M Residential Project

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By Connie Gore

DALLAS-With the Ritz-Carlton flag flying over the Uptown development, Crescent Real Estate Equities Co. will break ground in early 2007 on a $125-million second phase with 96 condos in a 23-story tower and four Regency Row homes alongside. And when that's nearly sold out, there's a three-acre block for a third residential phase.

"It is possible," Ken Moczulski, managing director of investments for the Fort Worth-based Crescent, tells GlobeSt.com about the widely rumored third phase. "We're going to wait and see how sales go for phase two."

The second phase, being assigned Pearl Street addresses, will go up on 5.5 acres beside the Ritz-Carlton Hotel, a 217-room project being topped off with 70 condos that will be delivering in third quarter 2007. The first phase of residential space, averaging 2,900 sf per condo, in the Crescent-dominated Uptown core has 63 units sold and letters of intent in hand for three more, according to Moczulski.

Moczulski says the same sales team will be handling phase two, marketing units from $700,000 to $8 million. Condos, ranging from $500 per sf to $1,000 per sf, will average 2,100 sf in one-, two- and three-bedroom designs. Touted as Upper East End product, the Regency Row houses will average 7,000 sf and be tagged for sale at $6 million to $8 million. "We've got people on the list for Regency Row already," he says. "They will be little jewel boxes and they will be priced like a jewel box."

Moczulski says the schedule calls for a June 24 launch of the "Ritz-Carlton Village" website and accepting letters of intent after Labor Day. He says firm contracts will be in hand by Nov. 1 so ground can break shortly after the new year begins. The expectation is second phase presales will follow that of the first, with construction launching at the 40% sold mark. Likewise, a third phase could be ramped up if the second round matches the first--75% sold within six months, he says.

Crescent's residential units have broken all records in the region. "It's a combination of location, architecture, the Ritz-Carlton lifestyle and Crescent, the largest owner in Dallas and Houston, is really standing behind this project," Moczulski says. "That's why we've been able to exceed all the pricing levels historically in Dallas." The reality is the condos in the second phase will average $750 per sf.

Moczulski says Oct. 15 to Nov. 1 has been targeted to firm up construction pricing, secure financing and line up the general contractor. The Cleveland-based KeyBank financed the first phase and will be at the head of line for phase two financing, he says.

The tower and row homes, carrying a fall 2008 completion, were designed by renowned architect Robert A.M. Stern with interiors by Sherry Hayslip of Dallas. A second-floor skywalk will link the tower to the hotel, with all residents having full access to the built-in amenity base. The interior of the second phase's tract will have a resort-style swimming pool, English Gardens and dog-walking garden.

"It is exciting to now have phase II available to potential homeowners, adding value and convenience to the perfectly located Residences neighborhood," John C. Goff, Crescent's vice chairman and CEO, says in a press release. The second phase's developer and owner is Crescent Tower Residential LP whereas the first phase's is Crescent Plaza Residential LP.

Upper West Side Condo Secures Financing

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By Barbara Jarvie

NEW YORK CITY-Anbau Enterprises has secured a mezzanine loan for the construction of a residential condominium on the Upper West Side. The firm plans to begin construction on the $52-million effort later this summer.

The site is located at 120 West 72nd St. between Columbus and Amsterdam avenues. The development will have less than 30 units. Initial residences scheduled for delivery in late 2007. The 60,000-sf, 16-story building will have a 4,000-sf first floor commercial space and a residents' recreational center located at the garden level. GoldenTree InSite Partners provided the mezzanine part. Senior financing was provided by Fremont Investment & Loan.

"The Upper West Side contains some of the most desirable apartments in New York City and our site is less than a block and a half from Central Park," explains Stephen Glascock, president of Anbau. "Our building's unique facade will have a mixture of brick and bay windows and will possess an architectural character that will complement the surrounding neighborhood."

Glascock points out that the site will have easy access to transportation, plus a 24-hour doorman and 10-ft ceiling heights. The development will have a combination of two-bedroom units as well as full-floor units.

Locally based Anbau is headed up by principals Glascock and Barbara van Beuren. Anbau is German for "to add onto."

GoldenTree was formed a year ago as a joint venture between founding partners Tom Shapiro and Joshua Pristaw and GoldenTree Asset Management. GoldenTree InSite Partners pursues value-added real estate opportunities through direct equity investment and mezzanine lending activities. GoldenTree manages $4.5 billion of absolute return assets and has total assets under management exceeding $7 billion.

Condo Conversion Gets $27M in Financing

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By Natalie Keith

DADELAND, FL-Palmetto Towers Group LLC has secured more than $27 million in financing for a condominium conversion project at Palmetto Towers, a 158-unit project. The two towers are located in an infill area that is currently being redeveloped with a variety of residential, retail and mixed-use projects under way.

Charles Foschini, senior director of CBRE/Melody's South Florida office and Christian Lee, executive vice president of CB Richard Ellis' Institutional Group arranged financing through a regional bank of behalf of. Foschini tells GlobeSt.com that the financing will cover the acquisition costs and the costs to convert the property to condominiums.

The project is being undertaken by Hector Hernandez, of the Miami-based American Conversion & Development Group. Hernandez typically develops affordable housing properties that quality for FHA loans and sell for $400,000 or less. "[Hernandez] just closed on the loan within the past few weeks. He usually starts construction with six months of closing on the loan," Foschini says.

Palmetto Towers is located in an area known as the Dadeland Triangle which is close to the Dadeland Mall. "This is one of the premier bedroom communities in the Miami area," Foschini notes.