DallasDirt » Condominiums

Museum Tower: Q&A With Developer John Sughrue

Candy Evans — Wed, 30 Jun 2010 15:00:41 +0000

Last week was the ground-breaking of Museum Tower finally, after two years of muddling though the worst recession ever since the Great Depression. At the morning ceremony, you could feel the energy and excitement. Over the weekend, I spoke with a major Dallas developer who said he believes Museum Tower has he best location of any residential high-rise in Dallas. That said, there are a few developments out there. Museum Tower developer John Sughrue was kind enough to indulge a few of my pesky questions when he could have been celebrating – a sincere thank you in advance:

Q: Will the financing with Dallas Police and Fire Pension hold certain requirements, one of those being that all labor used on the project must be union labor? Could that cause building delays?

A: There are no restrictions on our selection of contractors of any kind. This is incorrect information.

Q: Are you now taking reservations? How much are deposits on the reservations?

A: Our sales center is open by appointment only.

Q: How will these purchasers obtain financing – do you have any preferred lenders set up, and what type of down payments are required?

A: Many of our buyers are cash buyers. There are many banks eager to finance our purchasers.

Q: Who is handling sales?

A: The development team…John Sughrue, Dan Boeckman, Greg Greene and Lyle Burgin.

Q: Have you re-thought the original price per square footage finish outs of $700 to $1000 psf originally mentioned?

A: Pricing remains firm.

Q: Have you re-thought the unit mix with so much unsold high end inventory out there?

A: Unit mix conversations are a constant and ongoing conversation.

Q: Who is doing the feasibility study?

A: Ted Wilson at Residential Strategies performed a market analysis for us.

Q: Using the Dallas P&F Pension seems like a highly creative solution to the unavailability or drying up of conventional banking credit in the condo marketplace – how did you come up with this, and what made them feel like this was a risk to take on?

A: This is a question better asked of the Dallas Police and Fire Pension System.

Q: What are the Fund’s presale requirements? How many units must you pre-sell before the Fund releases any money?

A: We have no presale requirements and believe selling later in the development cycle to be much more desirable than selling earlier.

Q: Are you adding in any commercial/mixed use to spread risk?

A: Our residents are interested in Museum Tower remaining residential-use only.

Q: What changes if any will be made from your original plans?

A: The building permitted today and to be constructed is the same project always envisioned.

Q: Critics are saying the Dallas P&F Pension also invested in Arizona real estate and that deal is apparently not going so well… of course I understand that doing real estate in Arizona is a totally different story than Dallas but… isn’t this a bit dangerous for our men in blue’s retirement money? I mean, what if the world falls apart again? Some analysts are saying we aren’t going to be out of the real estate woods for another 10 years? And these are not budget units.

A: Again, this is a question better answered by the Dallas Police and Fire Pension System. As the System has stated, they believe Museum Tower is an attractive investment and now is the perfect time to start construction.

Q: Speaking of budget units, when is someone going to build truly affordable housing in downtown Dallas where regular working people can live? Not everyone can afford $1,000,000 for a home? Is that even possible or have our land prices just shot up so very much?

A: Affordable housing and very attractive affordable housing can be found in the Cedars, just south of downtown and in Farmer’s Market. I might even add that on Main Street, there are residential towers at affordable prices. If you are talking about Section 8 affordable housing, that is a question better addressed to the City of Dallas.

Is the Renaissance on Turtle Creek Too Noisy?

Candy Evans — Wed, 24 Mar 2010 19:53:57 +0000

I am getting reports about The Renaissance on Turtle Creek being an excessively noisy place to live. Like you can barely watch television if someone is walking upstairs over your Dallas condo unit at 3225 Turtle Creek, and just forget it if she is they are wearing stilettos. But then, maybe that’s just life in a condo. I’ve also heard The Renaissance is one of the best condo real estate deals on Turtle Creek.

Anyone care to enlighten us and share their experience?

Ask Candy: How About A Preston Towers Condo for our Student Daughter?

Candy Evans — Thu, 29 Oct 2009 13:02:24 +0000

Dear Candy,

My daughter is starting Baylor Nursing school in January and we are looking at places for her to live. I am trying to decide whether to rent or buy. In order for her to have a safe place to live, we will be paying what seems to me like a lot of rent, plus utilities. So then I started to think about buying some place and I was considering Preston Towers. I know it is full of senior citizens, but it is really safe, really convenient, and I if I wish to sell when she finishes school, it seems that that Preston Hollow always has a built in base of people who simply do not want to leave the area for Turtle Creek or elsewhere and equally do not want to live in an assisted living situation, so they look at Preston Towers and The Athena.

I would jump at the new units on Bandera, but your post last week indicated that $215 might actually end up closer to $350, and I am not up for that kind of investment right now. So if I bought something and re-did it I thought that might be a good plan, especially if we have a unit with a south view. Some friends in real estate do not like condo ownership, esp. older condos, because of the assessment issues with on going maintenance. I do believe P.T. is in that category of probably needing the owners to chip in on some items to update the place. Other Realtors say “oh this is a great time to buy.” To which I say, when you’re a hammer, everything is a nail.

So what to do, what to do?

Gratzie,

Marisa

Dear Marisa: Because I love real estate, I like what you are thinking, and I agree with your choice in the area. First and foremost, it is safe for single young women. We had our single daughter live at home because Dallas is just not that safe for women living alone, especially in the Uptown area. (Then the fiance moved in, oy, don’t get me started.) Preston Center is right north of University Park, blue chip dirt for the money. Realtor Della Lively tells me that the area just to the west of PT, “Behind the Pink Wall”, is one of the best kept secrets in Dallas. Ebby Halliday, of course, named it. You get older units but spacious square footage and safety. Full disclosure: I own one unit “Behind the Pink”, and my daughter and her husband recently moved into their own. Mine is always leased: I’d like to own more units.

I know of at least one family who bought a condo for their student child during the boom, and I think they may have lost some equity. But the unit sold. This really is a great time to buy a condo for the best possible price. Rates not too shabby, either. Financial experts might tell you to lease — and you will find 2/2′s lease here for $1000 to $1750 a month, all bills paid. My thinking is this: if you can swing a mortgage for the same monthly payment (including the PITI), I’d rather build some equity. Our readers may have other opinions which I hope we hear!

As for Preston Tower, I believe it is trying to shed it’s image of being the “last stop before Sparkman Hillcrest”. I have a young, fun friend who lives there and she will pipe in. Older condos do become maintenance nightmares after several years, just like older homes. As Steve Brown said today at lunch, all condos do is give you the right to pay rent. On the other hand, I haven’t checked my Quicken category of home maintenance & repair in awhile. I might be surprised.

I would say look, find a great deal, and go for it. And remember, if you aren’t embarrassed by your offer in this market, then you are offering too much!

Thanks for writing! XO

Dallas Urban Real Estate: Playroom at The House

Candy Evans — Fri, 14 Aug 2009 14:19:38 +0000

Major trend in urban living. You don’t have rolling meadows, so the residents have to have a romper room. Like playroom at the The House, furnished with plenty of toys for big boys.

Dallas Real Estate Urban Living: Pool Side Vanity at The House

Candy Evans — Fri, 14 Aug 2009 13:50:26 +0000

Spectacular pool area so great I have an idea for the Germans: sell three-month pool memberships to non-residents. But make them submit vanity photos with the application.

The House: Decked Out for a King and Queen

Candy Evans — Fri, 14 Aug 2009 13:30:41 +0000

“King and Queen” chairs on the fifth floor resident’s room at The House. Right off this room is the pool deck. I presume one players checks or backgammon only while sitting on these thrones.

Dallas Real Estate: Postman Always Rings Twice at The House

Candy Evans — Fri, 14 Aug 2009 12:57:21 +0000

These are the post and Yoo boxes for residents at The House, kind of a signature Starck silly-ism, almost a take-off of high school lockers with those feet. That’s David Griffin checking the mail box.

The House: In Case You Decide To Cook At Home

Candy Evans — Thu, 13 Aug 2009 22:17:49 +0000

Very sleek kitchens with high-end appliances, Jenn-Aire if memory serves, Wolf ranges. I wonder if the folks who live in these units —The House, The W, One Arts Plaza – actually ever cook because they are within walking distance of so many great restaurants. The Hard Rock Cafe is now open across from The House, and when I was there last week, it was hopping. The best part besides the great food: $15 on lunch doesn’t exactly break the wallet.

When I lived in NYC, I hated schlepping groceries from the store up to my apartment, so we ate out much more often. Of course, we didn’t have concierge service. But then, when you downsize and it’s just one or two in The House, who needs a Sam’s closet?

Dallas Real Estate: Cool Pool At The House

Candy Evans — Thu, 13 Aug 2009 21:56:58 +0000

The pool at The House, on the fifth floor overlooking everything. HOA’s at The House are .47 per square foot of space you own, that includes water and a blanket insurance policy. You will have to pay your own electricity. There is 24 hour valet and security, two concierge on staff in the day, one at night. Premier Communities is the condo manager. David Griffin says financing has been arranged through Wells Fargo at market rates. The units are non-warrant-able like all condos: Fannie Mae guidelines prohibit them from buying mortgages (on the secondary market) from condos that do not have 51% of the units sold but Fannie Mae buys only conforming mortgages — that is, mortgages at or below $417,000. That would make the only units at The House eligible for Fannie Mae the one bedroom units priced at $399,000.

The House By Starck And Yoo, Ctd: Inside Living

Candy Evans — Thu, 13 Aug 2009 15:33:31 +0000

Here’s a sample of living inside the House and what your home might look like day and night. The beauty of high-rise living is, of course, having that dramatic backdrop of glittering lights come sundown. Each unit also has generous balconies.

D Sale Of The Week: This House Is Ready To Rock And Roll And Deal

Candy Evans — Thu, 13 Aug 2009 13:00:25 +0000

At last, the long-awaited The House by Starck and Yoo at Victory Park is complete and ready for move-in. This is Victory’s final and most dramatic chapter, at least for a while. Yes, it’s another high-rise condo—with 28 stories of units to sell—but this one boasts the whimsical influence of Philippe Starck, including a white-draped lobby with a huge, gleaming, silver mailbox cluster that is reminiscent of school lockers, but the whole unit is on legs. Plus, the pool deck is one of the most glorious I’ve seen. This is going to be what we called a “meat market” when I was single. You won’t dare appear up here without plenty of lipo, though the broad lounge cushions may camo the cellulite. But here’s the best part: broker David Griffin says the Germans mean business. (The German real estate fund US Treuhand has taken the reins of Victory and hence is selling these units.) They are ready to cut a deal, which means you can own a house at The House for less than $400,000—one bedroom, one-and-a-half bath, about 1,000 square feet—with an impressive finish-out with a European feel and generous closets. The building amentities will spoil, from the work-out room to the apartment for overnight guests. As for financing, well, just how deep are those pockets? Let’s make a deal.

Wick Allison Gave Me A Present

Candy Evans — Wed, 12 Aug 2009 17:55:22 +0000

He blogged this, which I was going to blog today. And he even lifted out the best graph from Joel Kotkin’s piece from The New Geography:

“It seems to me what makes for great cities in history are not measurements of safety, sanitation or homogeneity but economic growth, cultural diversity and social dynamism. A great city, as Rene Descartes wrote of 17th century Amsterdam, should be “an inventory of the possible,” a place of imagination that attracts ambitious migrants, families and entrepreneurs. Such places are aspirational - they draw people not for a restful visit or elegant repast but to achieve some sort of upward mobility.”

Dallas is ALL ABOUT upward mobility. I write for Joel Kotkin and know he is very bullish on the Texas economy, but for some reason thinks Houston is the cat’s meow. (Oh, the diversity, creativity, the business climate, urban living… but it takes you three hours to drive two miles.) My goal post-wedding: get Joel Kotkin to Big D.

And thank you, Mr. Allison: now I have time for a manicure!

Dallas Real Estate Ups And Downs: Considering A Condo Move To “21″

Candy Evans — Wed, 12 Aug 2009 16:26:00 +0000

I want to do an experiment. I want to try living in a condo for about six months and see if I, a confirmed home-owner, can stand it. I kind of like my privacy and lots of space. I like to let the dogs out at all hours without having to comb hair and don dark glasses to cover eyes without makeup. Once in a blue moon I like to garden. Some friends who have moved to condos from homes LOVE them — no more maintenance, valet at your fingertips. Others say it was the worst mistake of their lives: lack of decent closet space, weird smells, high maintenance fees, everyone minding your business. But condos have lower utility rates and multi-fam living is more green. That’s why I think developers should let potential buyers “try on” condos to see if they really like them.

This is a comment from a reader that was going to get buried. He/she already lives in a condo and is considering a move to “21″ — what can we tell them:

”I am a long time condo owner in another HOA but an considering moving to 21 Turtle Creek. Is it really bad? I am president of our Board and we try to treat owners courteously. We are very hands-on in our property management so we don’t go into debt but still maintain our property. Does 21 have frequent dues increases and assessments? We have had only 1 assessment and 5 dues increases in 26 years. Also, propably because we are not a high rise but are built around a courtyard, owners are friendly but not in your business. And, if you don’t want to valet park, can’t you just go in the garage and park yourself. Does everyone have to know all your comings and goings and who visits you and when? Thanks for any input.”

D Sale/Lease Of The Week, Ctd: Beautiful Boudoir

Candy Evans — Thu, 06 Aug 2009 16:30:23 +0000

This lease offers a great opportunity for those who are not sure they are ready to give up a yard the chance to find out if high-rise living is their cup of tee. Try living above the trees for a year — like it, you stay; don’t like it, hand back the keys and march back to the ‘burbs.

P.S. Ron, what is that clock?

D Lease At The Vendome, Ctd.

Candy Evans — Thu, 06 Aug 2009 15:59:24 +0000

The Foyer and one of three brand-new flat screen TV’s that are your’s to view as you hide out for a year.