Every so often, I drive out to RR to check out what kind of progress has been made. After reading about how they are now going to start renting out some of the homes, I decided to drive out there this afternoon. I have to say, I'm pretty disappointed. It appears that since my last visit a year ago, the only new homes that have been constructed are a couple of rows of condos.
I'm wondering how this level of progress stacks up against other similar projects. From what I can find, the first homes sold back in 2005 - about 120 total sales. Including the condos I mentioned, I doubt there are more than 250 total homes completed. With original projections nearing 4,000 homes - I've found no indication of what kind of timeline the developer has targeted to have these 4,000 homes completed. And the same development company is (or was) talking about building more homes near the country club estates. If they do, will RR take a back seat?
I'd also be curious to know what kind of city funding has been involved and if that funding had some sort of expectations attached with regards to ROI. Renting out $200K+ homes hardly sounds like a positive move. The article made it sound like this move would speed up construction - but that really doesn't seem right. Wouldn't that put the builder/developer into even deeper debt?
You would think that when you have the "internet highway" at your finger tips, you would do a bit of research before complaining about nothing.
Look around and you will find that there have been alot of properties sold out there since this time last year. It's up to the property owner to get the building built. When you are a new property site owner, it's more than saying "Ok, here's my money, now build my house" - there are plans to draw (and lots of them), things to choose beyond the colors of the walls (garage or not, decorative crown molding, knobs, door styles, wood types, etc). Are you getting the picture yet?
Also, when you drove out there to peruse the area, did you only drive to the center? Follow some of the utility trucks, construction vehicles or workers down to the water front area. Perhaps, open your eyes and look beyond the curb of the street. According to the Rarity Ridge website, they are opening Phase 8 as of September 2007. Just like most large development companies, they didn't just go in there, knock down some trees and allow potential buyers to just come on in, draw some lines around what they want and throw down some cash in a day.
Oh, and WHO said that ALL of these houses were being built to be rental units?
From checking out your previous posts about different issues, it appears as though you tend to "shoot from the hip" before obtaining some of the facts.
Goodness, BS, who peed in your Cheerios this morning? I spent at least an hour Googling this subject after returning from driving out there (to include going to the water) and then used that information to ask questions - that's hardly shooting from the hip.
Oh, and WHO said that ALL of these houses were being built to be rental units?
No one said ALL - but Peggy Hanrahan and Fred McArthur are featured in this week's Observer talking about building 2-3 homes PER WEEK specifically to rent.
Sorry if it came across as complaining, but I was actually making an attempt to understand the situation.
You also referenced Phase 8 on their website - I found that too, but when I clicked on it there was no information provided. Only a "TBD" note. Maybe you've found some more informative sites that you'd like to share.
Look around and you will find that there have been alot of properties sold out there since this time last year. It's up to the property owner to get the building built. When you are a new property site owner, it's more than saying "Ok, here's my money, now build my house" - there are plans to draw (and lots of them), things to choose beyond the colors of the walls (garage or not, decorative crown molding, knobs, door styles, wood types, etc). Are you getting the picture yet?
Now, I can certainly appreciate how long it takes for an individual to have a home built as I've known many people who've gone through the process. But I didn't realize that this project involved primarily individuals building their homes - I thought that was more up to the developer. Would you mind educating me on the genesis of the project. A high level summary would be ideal. I'm being sincere.
I don't have a dog in the hunt, but it could be a simple arithmetic problem.
If the developers are financing what they're building and noone is buying the houses, then renting them would be a way to slow the cash hemorrhage.
Another possibility -- purely anecdotal, but coming from people who generally know what's really going on -- is that many of the lots have been purchased by people who are planning to build in a few years when they retire.
I don't recall there being any financial enticements to the developer to create Rarity Ridge; to the best of my knowledge, the only public investment comes from the City having to extend its infrastructure (water, sewer, electric) and to provide services like fire and police protection to an area so far from the rest of the residential areas of the city.
I met a realtor at Starbucks, and he was from New York City. Evidently, a lot of retiring Baby Boomers like to speculate on these type of brand new communites in the south. They hold on to them for about three years, and usually make a nice profit.
Unless the article was inaccurate, they are building new homes specifically to rent out. That won't do anything for current debt. I can understand if the plan was called for many of the lots to be built on by individuals, but I'm just wanting to understand what kind of expectations were established from the beginning in order for the city to agree to pay for the infrastructure and sign on for school support. That stuff ain't cheap by no means.
To be specific, does anyone know:
1. How much has RR cost the city thus far and what was the total projected cost to the city when the plans were finalized?
2. Within the same agreement, what benchmarks were set for housing development? i.e. x # homes to be built by 2008, 2010, 2100???
Come on - I know some of you have to know these answers. Cracker?
I have seen those numbers but I don't have them handy. They are way behind and I think a lot of it was their concentration on sales as a retirement possibility to folks up north. That delays everything and lets in a lot of uncertainty that older folks have and a bit of speculation as a result.
I suspect that the rental area concentration is a way to get their cash flow up until the migration in the late fall of their clients' lives can start.
Mike Ross has a business plan different than most residential land developers. He is much less concerned about houses being built than he is lots being sold. As opposed to most developers, Mike bonds 100% of his infrastructure costs up front before he actually starts any appreciable construction. That allows him to start selling lots immediately. He markets to the "rust belt", speculators and those who want to move to the South from Michigan, Illinois, Ohio, etc upon retirement. He normally has a big one day sales promotion very early on. Folks fly in then he shuttles them by helicopter from the airport to the site. At Rarity Oaks for instance, I have heard that he had $6,000,000 in lots sales in one day. By this approach you have many more lot purchases early on than you have actual houses constructed. Significant house construction is often delayed by several years.
Rarity builds quality communities but it takes time. The irony of all this is that the City and other public agencies have invested $$$$ to serve Rarity Ridge, a project which will be a net revenue loss to the City for several years to come, yet we have difficulty investing in retail opportunities which would generate significant revenue and improved quality of life in a very short time period.