NORFOLK
In the midst of the faltering housing market, with financial institutions failing, foreclosures rising and housing prices falling, Arthur Collins remains an optimist.
After building successful high-end residential projects in downtown and Larchmont, the Connecticut developer has proposed perhaps his boldest local project so far - a 385-unit condominium near Wards Corner, an area already awash in unsold condos.
With prices starting at $150,000 and topping out at $350,000, the $60 million project on Newport Avenue should appeal to buyers of many incomes, Collins said.
Collins' new project will replace the aging Riverside Terrace Apartments. He said he plans to demolish the 200 units in phases.
The City Council is set to rezone the land for higher density next month.
The new development will be called the WaterMark, with the 100-unit first phase to be called WestPort Commons. Development on the project has begun with the construction of 12 units.
The 12.3-acre site has a view of the Elizabeth River and borders Granby Elementary School. The Norfolk Fitness and Wellness Center, the city's largest recreation center, is across Newport Avenue. It's a short drive to the Norfolk Naval Station, downtown and Old Dominion University.
"It's a great location in a great neighborhood," Collins said.
Councilman Barclay C. Winn said the apartments have been troublesome for the adjoining neighborhoods.
"We've had some public safety problems there," he said. "This project will be a definite improvement.
"And he's going to have work-force housing for teachers, police officers and others we're trying to encourage to stay in the city."
Collins acknowledged the condo market is soft. Work on the city's two largest projects - Granby Tower and the Spectrum at Willoughby Point - ceased after both lost financing.
Three smaller condo projects within a short drive of WaterMark - Tanners Landing, Riverpoint Court Condominiums and Grantham Square - have not sold well.
Debra Almeter, of Coastal Group Inc., which is marketing the 32-unit Riverpoint project, said interest, but not sales, in the condos has picked up in recent weeks. In the 10 months since the project opened, she has sold one condo and has contracts pending for two others.
Collins said he believes the market will turn around soon, and David Block, a real estate agent with William E. Wood and Associates, whose agency is not marketing Collins' condos, said he could be right.
"When everyone else is running around like Chicken Little, afraid to do anything, sometimes smart investors know that's the time to grab opportunities like this," Block said. "At some point, the inventory now on the market will sell and there will be a demand for this type of housing."
Councilman W. Randy Wright said Collins was a pioneer in downtown development when the consensus was that residential construction there was risky. "I wouldn't bet against him. He's done it elsewhere when everyone thought he would fail," Wright said.
Harry Minium, (757) 446-2371, harry.minium@pilotonline.com
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Remember folks
Ethan the town cryer and self pro-claimed mortgage industry expert is a renter. He fails to account for his lack of equity and tax savings w/ his rents/. While the rest of us move forward he spins his wheels. By time he actually gets the market he seeks the rates will rob his expected savings.
No one smart rents unless they have too.
Good idea cigim94543
cigim94543 -- good idea! You need to buy those condos and rent them out for half of what you paid. This is about what's going on right now. My rent shows a purchase price of $145K for my apartment, but a much worse nearby condo was listed at $400K. And I really don't feel good about paying what I pay, because I'm seeing better deals. Rents have to reflect real incomes, while purchase prices were based on fantasy (and those loose loans, which you can see how well that worked out.) Also, don't think for a minute people aren't leaving Hampton Roads. I've seen a number of talented people recently leave for greener pastures, and I hear chatter all the time. See how well the USA does without a middle class.
condo...get rid of low in come apts....
what is the monthly condo fee??? what does it include???what will the the fee be 5 years from now??
My Ship cometh in -
I shall buy five of these condo's as investment rental properties, steady flow of cash, for non-condo minded residents who just want to rent - so i will rent to teachers, nurses, semi-professionals and make a good steady income - and in time 10 - 12 years i will slowly sell them off and pocket a nice tidy profit - hurry hurry quick quick - i'm losing money.....
Our Benevolence
Yep, let's get rid of those affordable apartments, and build unaffordable condominiums.
Rather than enforce the law and draw fire from the full time victims of our society Norfolk is quietly pricing their "undesirables" out of the marketplace. Barclay Winn mentions public safety problems in that corridor, but those are easily solved by JAILS. The Great Norfolk Rulers are tearing down affordable housing in guise of redevelopment. I wonder how many of the apartments current residents would even have a prayer of retaining financing on a condominium in this market?
Heh
The entry price point of the condos, $150K, is around what the median income family in Virginia Beach can afford, based on census data. A little bit under. I believe Norfolk has a much lower median household income. However, I bet the low end condo is some lame studio. What I'm saying is, these are mania prices. Way too high. I just busted open Realtytrac.com, and found $120K bank owned for sale detached home 2b/2b in Raleigh NC, with garage, 1200 sq ft, nice looking. These prices are comparable to Ashburn VA. Way too high. Sorry. Then again, probably counting on retirees since that is who likes condos.