Dropping by Visum Development Group‘s 201 College Avenue project, I was a little surprised that one half of the building is so much further along than the other half.
201 College is a “H” or dumbbell-shaped structure – the bridge between the two halves hosts the elevator shaft and part of the circulation (hallway). The west wing has completed structural framing, the exterior stud walls are being installed, and even some of the sheathing (fire-rated GP DensGlass fiberglass mat gypsum) is up on the ground level. Peering inside, it looks like some of the interior stud walls have already been set.
In contrast, the east wing isn’t that much further along than it was two months ago – the ground level masonry has been built-out, but the structural steel has not advanced since the February update. It’s not a sign of any difficulties, and other structures have taken or are taking similar approaches – Tompkins Trust’s new HQ has topped out, for example, but the north and east wings have yet to be built out beyond the elevator core. Still, it will take several weeks for the east wing to catch up when William H. Lane Inc. moves ahead with that side of the structure.
According to the construction loan docs filed with the county, the 33,398 SF project is being funded with a $7,870,673 loan from Pennsylvania-based S&T Bank, separate from the $2,640,000 from Visum and its backers that went towards purchase of the property. Hard costs, which are the construction materials and labor, comprise $6,841,038 of the loan, while soft costs comprise $506,984 (permits, legal, marketing, architect and engineering fee, liability insurance, financing costs such as loan fees/taxes/recording costs). An additional $300,000 serves as contingency (your “cover your butt” cash in case of unexpected expenses or poor occupancy rates), and $226,158 is set aside as interest reserve (a special savings account that pays the lender interest on the construction loan while the building is under construction – the objective is to get the building done and occupied before the reserve runs out).
The timeframe is quite tight on 201 College, with a planned August 2017 opening. The rest of the building should move along quickly over the next few months.