Village Solars Construction Update, 3/2020

22 03 2020

This mostly reuses the Voice gallery writeup, but it’s a chance to publish all the unused photos as well.

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At the Village Solars site off of Warren Road in Lansing, phase five of apartment construction is underway. 24-unit 36 Village Circle North (3 three-bedrooms, 6 two-bedrooms, 3 one-bedrooms and 12 studios), which replaces an older 12,000 square-foot 10-unit structure, is fully framed, sheathed with ZIP Panels, shingled and fitted with doors and windows. The installation of exterior fiber cement trim boards has yet to happen, perhaps because the Lucente family’s in-house construction team was waiting for warmer weather.

Building M is a new build on previously vacant land. It is an 18-unit building with 12 studios and 6 two-bedroom units. It too is now fully framed, sheathed, and roofed. The sets of wires dangling from below the eaves are utility lines for the air-source electric heat pumps, as construction continues they’ll be bundled together and boxed up into the exterior siding (the heat pumps themselves will be boxed in with a decorative screen in a bump-out). The 50 year-old blue apartment building in the photos below will be torn down later this spring to make way for a larger apartment building.

As previously reported in late February, Rocco Lucente Jr. gave the following timeline for buildout: “We are on time, on budget, the project is going very well. We should have our current two (#36 & #119) completed by June and July. The next two (community center and #117) will come the next summer, and the final two (#2 & 22) will be the summer after that! So by Summer 2022 the current project will be completed.”





Village Solars Construction Update, 12/2019

22 12 2019

Over at the Village Solars site off of Warren Road in Lansing, phase five of apartment construction is underway. 24-unit 36 Village Circle North (3 three-bedrooms, 6 two-bedrooms, 3 one-bedrooms and 12 studios), which replaces an older 12,000 SF 10-unit structure, is fully framed, sheathed with ZIP Panels, shingled and fitted with doors and windows. The installation of exterior fiber cement trim boards is just getting underway. The sets of wires dangling from below the eaves are utility lines for the air-source electric heat pumps, as construction continues they’ll be bundled together and boxed up into the exterior siding (the heat pumps themselves will be boxed in with a decorative screen in a bump-out).

Building M is a new build on previously vacant land. It is an 18-unit building with 12 studios and 6 two-bedroom units. It is undergoing framing now and has yet to top out with roof trusses. If I had to take a guess, I’d say 36 Village Circle North will be ready by the end of April, and Building M will be ready by the end of July.

So, avoiding the political question of whether the town supervisor should have voted on approving the PDA amendment on the community center because that’s not this blog’s wheelhouse, it was granted, but the outcome for the community center is still murky. As previously discussed back in September, it could either be built at its original location in its original ground-floor community/commercial with 20 one-bedrooms above, or with a different design in a location further east, more central to the property next door for sale by Rocco Lucente Sr.’s estate.

A few weeks ago, an ad showed up on commercial real estate website Loopnet advertising Lucente Sr.’s holdings, listing the property for $10 million. For that price one gets 96.44 acres and 42 existing units in four buildings, as well as plenty of development potential. Now, my gut is that the negotiations between Steve Lucente and his father’s estate were either not going well or had fallen through completely, but no one in the family is talking, so it’s anyone’s guess as to whether or not that big merger of the two sites will happen. If it doesn’t, Steve Lucente will start work on the originally-planned community center building next year, as the modified Planned Development Area states.

I did not realize TCAT Bus Route 37 now passes through here (it appears to have started to make stops here earlier this year) but it makes sense given the population growth. At the start of the decade there were about 56 bedrooms here and about 30 on the elder Lucente’s property next door. When the latest building open next year, it will be 420 or so bedrooms on this site and 54 next door (the elder Lucente built a final 12-unit building with two-bedroom units in 2011-12). When all approved construction is complete in about 2022 (the three remaining rebuilds and the community center mixed-use), that will be up to 507 bedrooms in 333 units, not considering future growth on the property next door. It’s not quite the scale of Cornell’s dorm projects or Collegetown Terrace, but it’s probably the next largest single development site after those, it’s just no one notices because it’s rather out of the way and the build-out has been modest but steady.

According to a county deed filing just after this post went up, Northwest Bank, a regional bank mainly operating in Western Pennsylvania, is lending $4,935,000 for the construction of the two buildings.





Village Solars Construction Update 9/2019

13 09 2019

So there’s been some news regarding the Village Solars buildout. The community center is in flux. The original proposal was for a mixed-use building with ground-level commercial and community amenities, and 20 one-bedroom apartments on the upper levels. Now, it’s an unknown. Per the Lansing Star:

“(T)hey will relocate the community center site to a location more central what will become an enlarged, single development. The lower floor would have amenities like a restaurant, a work-out center, and other features, with apartments on the upper floors. If not, they would build the smaller community center as already accepted by the Town.”

That means that the community center is being moved to another location on the site, and potentially take a different physical form, though programmatically it remains the same (commercial/community use on the ground level, residential above).

When the article says a more central location, it refers to the 96.44 acres of land east of the complex. The Village Solars are owned by Steve Lucente, and the undeveloped land to the east by his father Rocco, who had purchased it in 1960 and was recently planning his own apartment complex (schematic in the early Village Solars site plan below). My understanding is that the two Lucentes didn’t get along at all – I was warned to never bring up Steve when interviewing Rocco. After Rocco passed away about 18 months ago, Steve saw an opportunity to purchase the vacant land to the east from Rocco’s estate, and build a bigger complex in future phases (as yet unapproved). The purchase offer, at least check, is still being reviewed by Rocco’s Executors.

However, this created a problem. Local Law #6 of 2017, the Planned Development Area (PDA, like Ithaca’s PUD it’s D-I-Y zoning) with the town, stipulated that the community center had to be built and open by the end of 2020, and only one more apartment building could be built before it was done. So Steve Lucente and his project team had to make the case to the town of Lansing Planning Board and Town Board give them time to purchase the land and design the new community center, and let them do three more apartment buildings in the meanwhile to keep on pace with their construction plans. If the offer feel through, he’d build the community center starting next summer and finishing in 2021, a year later than initially planned. Generally, of all the communities to have to make such a request, Lansing would be one of the most accommodating.

Officially, only the Town Board really decides PDA amendments. But here, the Town Board was uncomfortable with the request at first, referred it to the Planning Board for guidance, and then after the Planning Board weighed in, it returned to the town board with a recommendation to consider during voting.

This caused some debate, with some of the planning board feeling like their credibility was taking a hint with this latest delay (the community center was delayed at least once, hence why it was explicitly stated in the 2017 PDA revision), and at least one member of the town board feeling as if they were purposely misled since banks would have received the notice of intent to modify the plans several months ago, but Steve Lucente countered that it was not a firm plan and only became firm later in the year when the offer looked like it had a good chance of being accepted. On a 3-1 vote, the town is permitting three more apartment buildings and only two more, and expects a community center to start next year in either the old or the new location.

At this point, the last of the originally permitted buildings, 24-unit 36 Village Circle North (3 three-bedrooms, 6 two-bedrooms, 3 one-bedrooms and 12 studios) has had its foundation footers poured and is awaiting the concrete slab pour. The tarp and mesh are in place for stability and added strength respectively, and you can see the below-ground utilities poking out, capped for the time being. A surveyor was on site during this visit to make sure everything was level and in good order before the wood frame starts to rise. The three newly permitted buildings are all reconstruction of existing 8-10 unit buildings, into two 18-unit buildings (2 Village Place, 22 Village Place) and one 24-unit building (117 Village Circle North).

Apparently, occupancy rates have been strong. Building “L” (113 Village Circle North) opened in June, and 22 of its 24 units were spoken for, with the other two rented shortly after.

As for the future, it’s not clear. Something will be proposed that may very well require more PDA amendments, but we’ll see. The elder Lucente’s complementary apartment complex was supposed to be around 300 units in size (built over several years), and it wouldn’t be a surprise if the Village Solars plan expands by a similar amount.

 





Village Solars Construction Update 5/2019

25 05 2019

From the Voice, with light editing:

“Quietly plodding along off the 1000 Block of Warren Road, Lifestyle Properties’ Village Solars Apartments continues its steady buildout. This is one of the largest projects in Tompkins County, with 277 apartments approved, with potentially more in the works on the adjacent property to the east. So why doesn’t it get much attention? They build a couple of apartment buildings each year, they don’t have tax abatements or any high-profile review process because they were approved by the town as a Planned Development Area (flexible “D-I-Y” zoning), and they’re in a less-trafficked part of the county north of the airport. They’re low profile, physically and programmatically.

Under construction right now are Buildings “K” (113 Village Circle) and “L” (40 Village Place), which make the 11th and 12th buildings to have been built in the past five years. The 24-unit Building “K” is mostly complete from the outside, and likely to open for occupancy later this spring, adding another 3 three-bedrooms, 6 two-bedrooms, 3 one-bedrooms and 12 studios to the market. 24-unit Building “L”, just to its east, isn’t as far along. It’s framed, sheathed and has had its windows and doors fitted, but the fiber cement siding is only partially finished, and exposed interior stud walls are visible through the windows. If you’re wondering what the rat’s nest of white cables are, those are connections for the air-source electric heat pumps – the units are installed towards the bottom, and the cables are framed in by a bump-out for aesthetic purposes.

The latest two buildings are being funded courtesy of a $5.6 million construction loan extended by Elmira Savings Bank. According to the loan filing, both buildings are expected to be completed and ready for their first tenants by the end of September. But more realistically, given that the local rental market revolves around the academic cycle and that some graduate and professional students make their homes here, expect the new apartments to be ready for occupancy no later than mid-August.”

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I must have missed the part when “Equinox Way”, the new through road was named. Still waiting a construction start on Building “F”, as seen below the site is just grass at the moment. Offhand, Lifestyle Properties can start one more building before they have to build the mixed-use community building, and regardless, the community center must be complete by the end of 2020.

The timeline and plans for each phase is out of whack because the redevelopment of the existing apartment 1970s buildings was expected before new sites were to get underway. I’d venture a guess the 2019-2020 phase would be 18-unit Building “M” and the Community Center, for an August 2020 completion.

Giving credit where credit is due – the in-house construction crew is moving fast with these. Building “L” hardly had its site cleared and wood foundation forms in back in February. Years of practice pays off, perhaps. Interior walls and insulation is in, but drywall has yet to be hung, so completion is still a couple of months away.





Village Solars Construction Update, 2/2019

3 03 2019

It was with some surprise that the latest trip to the never-ending Village Solars construction site yielded significant progress on only one apartment building, instead of the usual two or three. The 24-unit Building “L” is mostly complete from the outside, and likely to open for occupancy this spring, adding another 3 three-bedrooms, 6 two-bedrooms, 3 one-bedrooms and 12 studios to the market. 24-unit Building “K”, just to its east (right, in the photos), appears to have not made much progress; excavation was completed, and it looks like there are wood forms for the foundation on site, though with the snow and active work underway, it was hard to tell if the concrete slab had been poured – judging from the dirt piles, that’s a no.

Local Law #6 (2017) of the Village Solars PDA permitted three additional buildings to be built before Lifestyle Properties (the Lucente Property) was legally obligated to build the community center building (Building “F”), which is to contain a small amount of commercial space (restaurant), service space (gym, laundry, rental office) and up to twenty one-bedroom units. If “L” and “K” are completed this year, that will allow one more building to receive a building permit before the community center must be built and receive a certificate of occupancy (i.e. habitable and practically complete). Until then, no additional building permits are allowed. The law also stipulates that the community center has to be completed, regardless of the status of other apartment buildings, by the end of 2020.  Like other apartments, it won’t be subject to site plan review, bu any potential commercial applicant would have to undergo site plan review.





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.

 

 





Village Solars Construction Update, 11/2018

21 11 2018

The Village Solars complex is a development project that never truly stops. Lifestyle Properties (the Lucente family) only builds two or three new apartment buildings each year, but after four years of construction, it has resulted in quite a large development. A visit to the site shows the next buildings are just getting underway – based off the latest site plan, it appears to be Building “L” and Building “K”, which is a little out-of-order in that these two were supposed to built in 2020-2021, after another phase that so far remains unbuilt. Building L’s foundation has been formed and poured, with all the utilities poking out of the concrete, to be routed into the framing as the building goes up; Building “K” looks like it’s still in the excavation stage. The crushed stone helps with drainage, site leveling and preventing cracks in the concrete due to settling. That water will be pumped out before the footers are poured.

Each of the two buildings, which have slightly different designs, is designed to host 24 units – 3 three-bedroom, 6 two-bedroom, 3 one-bedroom, and 12 of the one-bedroom “micro-units”, which are 400-500 square feet. Expect a mid-2019 opening for the pair. Next year’s phase likely involves one more apartment building in Phase “4”, as well as the construction on their mixed-use community center building (Building “F”), which will go in that empty space in the last photo. The town of Lansing’s Village Solars amended PDA law (#6 of 2016, to be technical) says the developers are only allowed one more building to be built before the community center must be constructed, and that the center must be built by the end of 2020.