News Tidbits 1/19/2019

20 01 2019

Now, let’s take a look at some notable property sales over the past few weeks. To make this easy, most sales documented in this post will use a standardized format for each entry.

1. What sold and for how much? 8 and 28 Newfield Depot Road, the parcel IDs for the 188-unit Valley Manor Mobile Home Park in Newfield, for $2,300,000 on 12/19/2018.

Who was the seller? Jim Ray Homes, a local manufactured and mobile home dealer, and mobile home park operator.

Who was the buyer? Cook Properties of Rochester, a mobile home management firm with properties across upstate New York.

Anything else? Not especially. The sale was just short of the tax assessed value ($2.3 million vs. $2.369 million), and while it’s a change of ownershipp, it’s also likely a maintenance of the status quo. Still, it’s a high-dollar sale worth noting. The assessment for mobile homes and manufactured homes is a bit funky, and I think the owners only own the lots, which likely contributes to the low price per unit.

2. What sold and for how much? 232 South Geneva Street for $533,000 on 12/20/2018, and 311-13 Farm Street in Fall Creek for $700,000 on 12/20/2018. 232 South Geneva is a 5-unit apartment building in the Henry St. John neighborhood; it sold for $302k in 2013, and $200k in 2008. 311-13 Farm Street is a 3-unit apartment building that sold for $505k in 2009. It includes 15 rentable bedrooms, and a portion that was set aside as an AirBnB by the previous owners, who had it on the market for $750k (assessment $610k). Both are small multi-family examples of the rapid price appreciation Tompkins County has been seeing in walkable urban areas.

Who was the seller? Jeremy Dietz for 232 South Geneva, and S&Y Investments, a California-based LLC (sales docs indicate the owners are John Scarpulla and Allyson Yarbrough) for 311-13 Farm Street.

Who was the buyer? An LLC associated with local landlord and developer Charlie O’Connor, owner of Modern Living Rentals.

Anything else? Don’t expect teardowns here. Generally speaking, that’s not MLR’s approach to Ithaca’s inner neighborhoods. Do expect them to stay rentals, probably with a renovation in the near future (see: 1002 North Cayuga Street and 202-04 East Marshall Street). O’Connor is flush with cash after his multi-million sale of the under-construction 802 Dryden Road to a Pittsburgh-based real estate investor last fall.

3. What sold and for how much? The Sprucewood Apartments in Northeast Ithaca, for $8,640,000 on 12/21/2018.  Sprucewood is a 108-unit apartment complex completed in 1966. All units are three-bedrooms, in eighteen six-unit buildings.

Who was the seller? The Lucente family, who run Lifestyle Properties in Ithaca. They own a host of other housing developments, including the Village Solars under construction in the town of Lansing.

Who was the buyer?  Winston Square LLC, an LLC associated with Stratford Management, a multifamily housing management firm with locations in six states.

Anything else? A case of “under new management”. The Lucentes are a whole lot richer, and Stratford, which mostly owns older apartment complexes across upstate, finally gets a toehold in the stable and lucrative Ithaca market. With it comes a new website and a name change, from Sprucewood to Winston Square. The apartments are primarily located on Winston Court, and the name comes from the late Rocco Sr.’s penchant for naming streets after cigarette brands in the 1950s and 1960s, hence the nickname “Cigarette Alley” for Northeast Ithaca. I don’t imagine that will be a part of the advertising pitch.

4. What sold and for how much? 815 South Aurora Street, for $385,000. The property includes a 2,845 SF industrial building and a 2,537 SF warehouse on 1.85 acres on South Hill. A radio and telecommunication tower is on site.

Who was the seller? Harold Fish. The Fish family has owned the property since at least the 1950s.

Who was the buyer? “IC Overlook LLC”, which appears to be associated with Modern Living Rentals and its owner, Charlie O’Connor.

Anything else? With Todd Fox, O’Connor proposed an 87-unit (all studio units) apartment building for the site in 2015, and in order to move forward, the duo had to make a case for the city to change its rules for building near radio and telecommunication towers. Most communities use the height plus 10 feet; at the time, Ithaca used double the height. This is a 170-foot tower, so that meant a 340 foot radius, instead of 180 feet as seen in most communities. The logic is the height plus a bit for bounce; but planning staff mused that Ithaca was a bit paranoid when the legislation was drawn up in the 1990s. The zoning code was revised, but such that it’s height plus 20% – a 204 foot radius, so the project had to be redesigned a bit. The last that was heard, plans were being for a 125-bedroom project in December 2016, but nothing came to light.

Until now. A sketch plan is scheduled for the planning board meeting next week.

5. What sold and for how much? 327 West Seneca Street, for $235,000 on January 11th.

Who was the seller? The estate of Orson Ledger, a man who was known in his decades of Ithaca for providing affordable housing by running his properties into the ground so that assessments would be low. Folks involved with Ithaca’s rental market in decades past tend to have strong opinions about Ledger, who died in a car accident five years ago.

Who was the buyer? An LLC tied to Visum Development Group.

Anything else? It means Visum’s 12-unit workforce housing proposal approved for 327 West Seneca Street is now one step closer to happening.

6. What sold and for how much? 305 West Green Street, for $560,000 on January 17th. 305 West Green Street is the former Ithaca Plastics. The property hosts a 2,400 SF home and a 5,150 SF industrial building.

Who was the seller? Richard and Sharon Buechel of Dryden, who had owned the property since 1989.

Who was the buyer? Cascade Studios LLC, which is registered to the address of Ithaca musician Brian Thrash.

Anything else? Generally not wise to take guesses on these sort of things, but plans for a music/recording studio, perhaps?

7. Something that catches the eye – local landlord Ed Cope has been actively selling off many of his rental properties. 310 Farm Street was sold for $365,000 on 12/28 to Jonah and Alicia Freedman, as was 312 Farm Street, for $395,000 on the same day. 513 South Aurora Street was also sold on December 28th, to Andrew Schreck for $425,000. Cope sold out of his share of 324 West Seneca Street for $180,200 on January 17th, and sold out of his share of 318-20 West Seneca on the same day for $349,800. That’s in addition to the sale of 115 Linn Street for $540,000 last October. That’s six sales in four months.

Vice-versa, Cope bought 107-09 Hudson Street from the estate of Sophia Tselekis for $540,000 on January 10th. Previously, Cope purchased 115 Hudson for $495,000 in October, and 108-110 Hudson Street for $460,000 in September.

All of this is to suggest that Ed Cope has been a very busy man lately. It would look as if he’s selling off properties to finance purchases of other properties clustered on the 100 Block of Hudson Street, just south of downtown and Six Mile Creek. Cope already owns 105 Hudson Street and 201 South Aurora Street on the corner, 114 Hudson, 117 Hudson and 118-120 Hudson. That leaves three properties in that cluster of eleven that he doesn’t own – 101, 111 and 112 Hudson Street. It’s not clear if something is in the works, but it is curious.

Now onto building loan agreements:

8. Where property received the construction loan? 232-236 Dryden Road, also known as “The Lux”, a 206-bedroom pair of student-oriented apartment buildings completed in 2018.  Visum Development Group completed the project, and plans are in the works for an eight-unit, 16-bedroom third building at 238 Dryden Road.

Who gave them the money? MF1 Capital LLC. The LLC is joint venture between real estate megafirm CBRE, Limekiln Real Estate of New York and Berkshire Group of Boston. According to online reports, it’s a mortgage REIT (Real Estate Investment Trust) focused on providing cash equity to multifamily (about 75% of its business) and seniors housing (the remaining 25%). A bridge loan is a short-term (2-3 year) financial solution, used as a “bridge” when a developer needs quick cash for a prime opportunity and has yet to obtain conventional construction loans. They’re usually easier to obtain because the analysis that goes into determining whether or not to extend the loan is less extensive, usually based on property value (which means a high-value loan in the case of a large Collegetown property). The trade off on these loans is that they often come with a high interest rate; and with that short term period, the loan will have to be paid back within a few years.

What it suggests here is that Visum has put most of its revenue right back into its latest plans in the form of working capital, and that there’s high confidence both in themselves and from the investor that those plans will be successful. That seems to make the most sense given Visum’s explosive growth. On a related note, $1.5 million would be about right for a new eight-unit apartment building on this site.

 

 





The Lux (232-236 Dryden Road) Construction Update, 9/2018

4 10 2018

Just noting that this project is complete and updated in the Ithaca Project Map accordingly. A lot of folks may not be fans of high-end student housing, but at least the design is attractive (kudos to STREAM Collaborative, they’ve got an open house Friday evening if you want a sneak peak at their latest project designs) and it’s 206 wealthy college kids who won’t be driving the price up on existing housing units elsewhere. Interior shots of the common spaces (gym, study room, rooftop deck lounge) can be found here.

Quick aside, the official street addresses are 112 Summit Avenue for The Lux South, and 114 Summit Avenue for The Lux North.

 

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The Lux (232-236 Dryden Road) Construction Update, 7/2018

12 07 2018

This one is in its home stretch. It’s rather striking how much the front balconies stand out, probably the result of the contrast in materials. The upper levels will use LP SmartSide white and marigold yellow fiber cement lap siding, and the lower levels are a black brick veneer (Endicott Thin Brick colored “Maganese Ironspot” with charcoal-colored mortar). The balconies use white Smart Trim and “Redwood” Allura fiber cement straight edge shingles. The architect, STREAM Collaborative’s Noah Demarest, designed the balconies to be a nod to the original appearance of the previous building on the site, the private Cascadilla School dormitory.

The second and third photos are practically a progression pic, showing that the balconies are framed in wood, walled with sheets of ZIP plywood sheathing, and then faced with the exterior materials. Some exterior finished still need to be attached, the concrete pours are ongoing for the Dryden Road entrance, and it appears the roof membrane has yet to be laid.

As far as the interior goes, the construction crews were using a front loader to lift countertops to units, so it seems likely drywall hanging and painting have been finished, and the floors may be installed but not yet finished out. Fixtures, appliances, doors and trim pieces probably have not been installed yet, though perhaps the lower-level units are further along. It’s a pretty tight deadline to get the buildings complete, with move-in day expected to be August 17th.

Outside of Maplewood, at 207 beds (I’ve presumed net gain at 140-150) this will be the largest non-Cornell project coming onto the Collegetown market this year. Given market concerns about the absorption of Maplewood units as well as the size and the timeline of Cornell’s future North Campus dorms (2000 beds, with two phases opening in 2020 and 2021) it might be the last large Collegetown project for a while. A few midsize 50-100 bed projects will likely come along in the interim, perhaps the Nines replacement, and the rumored replacement for the Chacona Block (411 College Avenue, home of Student Agencies), which is expected to head before the planning some time within the next twelve months. Novarr’s faculty/staff focused apartment buildings at 119-125 College Avenue have yet to begin construction and seem to be a big question mark. It’d be a shame if it still failed to move forward even after the resdesign to accommodate fire code changes.

According to the FAQ on The Lux’s website, units will be furnished and pets are allowed for a $150 fee. The eight parking spaces are available for rent to tenants on a first-come, first-serve basis at $200/month.  Units are $1,200-$1,300/month per bedroom, and includes access to an on-site fitness facility, rooftop terrace and hot tub, security system, sauna, game room and study room (most of those in 232 Dryden, “Lux South”). There’s no beating around the bush, this is high-end student housing, “creme of the creme” as one of my grad school professors would say.

On a final note, quick shoutout and well wishes to Visum Development VP Patrick Braga, who will be leaving his position to do a Master’s in Urban Planning at Harvard. In a world where developers and city planners often run in their own circles, it’ll be good to have someone with strong experience in both.





The Lux (232-236 Dryden Road) Construction Update, 4/2018

3 05 2018

At the site of The Lux at 232-236 Dryden Road, framing continues on the new apartment buildings. I’m under the impression that, like the Ithaka Terraces project also designed by STREAM, these are thick double-stud exterior walls. Double-stud walls are built using two sets of wood stud walls used in the exterior frame, parallel to each other but spaced apart by about 5 inches. That space is then filled (if like STREAM’s other projects) with R39 densely-packed cellulose insulation. The result has its pros and cons. The cons are that it’s more expensive to build, and it reduces the interior space a little bit. The pro is that it’s very energy efficient, which comes in handy for a project trying to achieve net-zero energy use.

On top of that appears to be wood furring strips for the cladding. I think the white panels on the north side might be boards with some kind of waterproofing? The roof on 232 Dryden appears to have had underlayment applied, but no EPDM (synthetic rubber) or similar finish yet.

The Amvic ICF will be faced with grey stucco and a black brick veneer, while the upper levels will use LP SmartSide white and marigold yellow fiber cement lap siding. The reflective material is likely insulation that’s also intended to keep out the moisture from the exterior brick.

The top floor will be finished with fiber cement panels with LP SmartTrim laid out patterned to give some visual interest to the top of the structures. The windows are Anderson 100 series units with black frames, and what will be white casings. Still rough openings in some of the walls, and the balconies are just starting to get built on the west face. 236 Dryden has yet to be fully framed, but the roof trusses are underway.

In its March email blast, the developer, local firm Visum Development group, announced that the contest to design lounge, gym and study rooms was won by two graduate architecture students from Cornell – for that, they win $2500 and will have a lounge named after them. The winning designs are here. As of February, about half of the 207 bedrooms were leased.

The project did pay a quick visit to the planning board recently to ask if they would could have permission to not screen some of the rooftop utilities – though less attractive and meant as a cost efficiency, these are less visible parts of the roof per the diagrams provided to the city. I didn’t hear any issues with it, so I assume it was deemed acceptable by the board.





The Lux (232-236 Dryden Road) Construction Update, 2/2018

19 02 2018

Things continue to move at a good clip over at “The Lux” at 232-236 Dryden Road. It looks like the insulated concrete forms (ICFs) have acquiesced to standard wood framing and ZIP panels on the upper floors. The building facing Dryden Road, 232/The Lux South, has commenced with framing of four of its five floors, and the elevator core/stairwell stands at full height (zoning only allows four floors/45 feet, but its a sloped site, so technically that bottom floor is a partially exposed basement level). 236/The Lux North has begun work on its basement level with the construction of ICFs covered with a vapor and water-resistant barrier (Resisto), and it appears that the first blocks for an elevator core/stair column are being assembled.

There might have been some internal reconfiguration. Site plan review documents noted that 232 Dryden will have 20 units and 53 bedrooms, and 236 Dryden will host 40 units and 138 bedrooms. But, a recent post on Visum’s facebook page suggests the project will have 207 bedrooms, not 191 as originally conceived. Everything appears to be on track for an August 2018 occupancy.

Even with the expected Cornell dorm additions in the next three years, the Lux’s location in inner Collegetown gives it an advantage over more remote housing options – students/parents with deep pockets will often pay more to be next to campus, while the amenities and worry-free living help seal the deal (worry-free in the sense that there’s no “deferred maintenance” to be concerned with when the units are brand new). Rents here are going for $1,200-$1,300 per bedroom, though they have a promotional running right now for 10% off rent for the first month.

It appears there was an unusual but interesting contest held by Visum that invited students to compose interior designs for the three common rooms in the complex. Registered applicants (individual or group) received floor plans and interior documents to aid in their designs, and had about eight weeks to submit their final plans (December 2nd – January 21st). The winning team gets $2,500 and a building lounge will be named in their honor. Snagged from the website and included below are some mockups of the gym, a study room and a commons space.





The Lux (232-236 Dryden Road) Construction Update, 12/2017

18 12 2017

Some progress on Visum’s latest project, “The Lux” at 232-236 Dryden Road in Collegetown. 232 Dryden, the building closer to Dryden Road, has started work on exterior framing – the partially-above grade basement level, built into the slope of the site, appears to have been framed with Amvic insulated concrete forms (ICFs), similar to those seen at the Ithaka Terraces and the Fox Blocks at the Thurston Avenue Apartments. These are thermally insulated plastic blocks filled with concrete – they tend to be a more expensive approach, but they also tend to have a higher grade of insulation (higher R-value), making for a more energy-efficient structure. There has been talking of making the complex net-zero energy capable, provided that the energy of an off-site solar array can be procured. STREAM, the architect of The Lux, also did the Ithaka Terraces. The exterior walls will be assembled block by block, with new pours as rows of blocks are set in place. The rebar provides additional stability. It appears the cinder block elevator core/stairwell has been assembled as well.

232 Dryden might be the more visually prominent of the two building, but it is also the smaller one – it will have 20 units and 53 bedrooms. 236 Dryden will host 40 units and 138 bedrooms.

Speaking of 236 Dryden,  Welliver has the foundation excavated, and the steel piles are in. However, judging from the steel rebar sitting on the edge of the site, the concrete pours have yet to take place, and it looks like the wooden forms are just now being built on the far side of the footprint.

Pessimistically, I could note that this is one of the few Collegetown projects that was able to move forward after the building code change that brought multiple other projects to a halt – the power lines on Dryden Road aren’t close enough for the project to infringe on the new regulations. I had heard Visum might actually pay for the burial of power lines on the 200 Block of Linden Avenue, but even if they did, they would still have to deal with NYSEG’s slow schedule.

 





The Lux (232-236 Dryden Road) Construction Update, 10/2017

23 10 2017

Continuing yesterday’s theme, here’s another one of Collegetown’s development opportunities playing out, though perhaps it was less obvious as the Linden Avenue properties – coming soon to Ithaca, 60 units with 191 beds of student housing at 232-236 Dryden Road, just east of Collegetown’s core and part of the eastern transition to the Belle Sherman neighborhood.

Once again, this is a case of Visum Development Group scouting potential opportunities at the right time and place to make something happen. Along with a large surface parking lot, the previous building on this site was a 30-unit apartment building and the former dormitory for the historic Cascadilla School, a private school with a 140-year history on the corner of Oak and Summit Avenues in Collegetown. The 4-story building once housed dorms, a dining hall and a gymnasium, but after its sale to private ownership after World War I, it was remodeled again and again, each seemingly more unsympathetic than the last. By the late 20th century, it was a grim, awkward-looking box, stripped of ornamentation and of its historic value. The previous owner, the proprietor of the Hillside Inn, had owned the property for several decades; Visum paid about triple the tax assessment ($7.65 million vs. $2.55 million) to buy the property in September.

There are two buildings to be built, totaling 84,700 SF – 232 Dryden (The Lux South) and 236 Dryden (The Lux North). This allows for different plane grades, meaning they’re different elevations. That makes it easier to blend in with the neighbors, and creates less ambiguity with height limits, something that bedeviled Visum with its 201 College Avenue project. As with 210 Linden, zoning is CR-4 – four floors, 45 feet from average grade, no parking required with a city-approved transportation demand management plan (TDMP). Usually, that means free bus passes or Carshare registrations, ample bike storage, and explaining how students can easily commute to campus by walking.

The project was proposed in March 2017 and approved by August. Overall, the changes were fairly modest. No zoning variances and little public opposition helped to create a smooth review process. The biggest change came during the design review process, and affected the Dryden Road facade – revised fenestration and the addition of shingle-style balconies. STREAM Collaborative’s intent is to give the south building a little more historical sensitivity, and the balconies are throwbacks to the Cascadilla dormitory’s long-gone shingle-style balconies.

However, given that this building will date open in 2018 and not 1898, instead of wood shingle, the balconies will use Allura “Redwood” fiber cement shinglewood pulp mixed with sand and cement, shaped for a wood-like appearance, but with the durability of concrete. Fiber cement is also more expensive to buy and install vs. materials like vinyl, which is why only more expensive or visible structures tend to use it. Other planned materials include Endicott manganese ironspot velour brick veneer, fiber cement panels with LP smart trim painted in Sherwin-Williams Pure White and Anonymous (that is the actual name), lap siding in SW Pure White and Marigold, granite grey stucco (real stucco, not DryVit), a metal canopy and Andersen windows.

The loan, for $16,354,628, was granted by S&T Bank, a regional bank based in Pennsylvania that has no retail banking presence in Ithaca, but has served as the financier for several projects, including the Holiday Inn Express that recently opened on Elmira Road, and Visum’s just-opened 201 College Avenue project. A breakdown of the costs shows the total project cost is $22,780,334. There’s $13,020,010 in hard costs (materials/labor), $7.65 million for property acquisition, $475,000 in soft costs (architect/engineering/legal), $250,000 for the demolition, and the rest is for taxes during construction and interest reserve (interest on the construction loan during construction). $650,000 (5% of the hard cost) is set aside as contingency funds just in case the expenses clock in higher than expected.

Despite the rather pretentious name and logo, it’s hard to argue the amenities don’t live up to the premise – according to the marketing website, tenants of The Lux and other Visum properties have access to a media lounge, study room, hot tub, sauna, full-service gym, game room and outdoor terrace. Tenants will have trash removal, stainless steel appliances, in-unit washer and dryer, and bike storage. I feel poor just typing this stuff out. Units are 1-5 bedrooms, with the smallest being 1 bed, 1 bath and 435 SF, and the largest being a 1693 SF, five-bedroom, five-bath. Rents will be $1200-$1300/month. Visum is running an offer that if all tenants on a lease (presumably a larger unit) can show they’re members of a registered student org, they get 10% off the first month and a $150 check will be given to their organization. Many larger Collegetown units are legacy properties among student groups (fraternity annexes, bandies, club and NCAA sports), passed down from year to year by members of the org. This may be a clever move to make next years’ renting a bit easier on Visum, whose CEO noted softening in the market this year.

A trip to the site shows caisson (steel pipe) piles have already been laid for The Lux South, and demolition is ongoing of the old apartment building on the site of The Lux North. The pipes extend down to the solid shale bedrock 46 feet below grade, according to local engineering firm Elwyn & Palmer. A deep foundation by any measure. A benefit to building in Collegetown is that the ground is much more amenable to deep foundations than the weak, water-logged soils of the West End.