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New hospital, road infrasture lead to new developments along Port Republic Road |
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![]() Click on the map above to view a larger version. In the past several years we have seen quite a few changes on Port Republic Road on the map shown above, including:
All of this new road infrastructure, plus the new hospital, plus a clustering of residential developments over the past 15-20 years has lead to quite a few new projects labeled on the map above.
Given the new hospital, the new road infrastructure, and the large area of existing housing, it is not surprise that we are seeing these new developments along Port Republic Road. Stoneport is the largest of the new projects, and it will certainly be interesting to see what businesses are established in that location. | |
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Both builders and buyers now prefer custom homes over spec homes |
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These definitions do not describe all possible situations, but they will give you a general idea of the two ways to go about buying/building a new home.... CUSTOM HOME: A home designed jointly by builder and buyer, which is then built to the buyer's specifications. SPEC HOME: A home designed by a builder, and built speculatively by the builder, who then works to find a buyer for the completed home. Back in the height of the housing market (a.k.a. housing boom)....
Now, after the market has cooled off quite a bit (a.k.a. housing bust?)....
Thankfully, these desires actually coincide. There were lots of spec builds in the height of the market, and lots of buyers to buy them. There are very few spec builds now, and very few buyers to buy them. Given the givens, here is some guidance for today's market.... Builders --- if you're going to build speculatively, put a good deal of thought into the floor plan and make sure it is going to be an attractive layout for a wide spectrum of buyers. Also, consider finishing the house through the drywall stage and then marketing it to find a buyer that can make their own selections for interior finishes. Buyers --- talk to your lender early to know what will be possible for you. Buying a lot, obtaining construction financing, and building a custom home is quite a different financial transaction than buying a finished home with a traditional mortgage. | |
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30 acres of development land for sale on Boyers Road |
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![]() Click the image above to see a larger version. There is a 30 acre parcel on Boyers Road currently for sale amidst quite a few popular subdivisions, and across the street from the new Rockingham Memorial Hospital. It will be interesting to see what may be developed in this area, and when it will happen. The black lines shown on the map are my estimation of property lines, and are by no means precise. This property is listed by Jim Sipe, Jr. of Coldwell Banker Commercial Funkhouser Realtors. | |
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Harrisonburg's Northend Greenway |
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![]() photo credit: Aaron Johnston Have you heard about Harrisonburg's Northend Greenway? It is an exciting new project that you should know about, and support... A PATH... It will be a 2.5-mile multi-use path connecting people in north Harrisonburg with the places they want to go. From Virginia Mennonite Retirement Community, to Section 8 housing, and a university, a high school, and two community centers, the path will serve several diverse populations, representing 10-20% of Harrisonburg residents. Commuters working or living in downtown and points north will have a scenic, stress-free, and significant segment of their ride off of roadways and along a relatively level route. People needing to buy groceries, attend events downtown, or athletics and plays at Eastern Mennonite University, will have an easy, relaxing way to get where they need to go. Others wanting to travel farther – to James Madison University, Purcell Park, etc. – will be able to easily connect with existing bike and pedestrian infrastructure to continue their journey. For many of the residents along the path's route, this will provide a sustainable and financially viable means of transportation. A PARK... Beyond simply meeting transportation needs, the path will also be a "corridor park," that passes through neighborhoods and undeveloped land along a scenic route that follows Blacks Run and which reveals some of Harrisonburg's better-hidden natural beauty. Along the Northend Greenway, this will create public park space in areas where there currently is little. The path will be 8 to 10 feet wide and entirely paved, with a buffer of green space on either side. At different points along the route, this green space will include native plantings, places to sit and rest or have a picnic, informational signs, and potentially stream and field restoration. The park will only be accessible to non-motorized traffic, and will be well-lit. A PROTOTYPE... Last, and by no means least importantly, the Northend Greenway will be a prototype representing the best in bicycle and pedestrian infrastructure. We see the greenway as the first stage in a larger human-powered transportation network, and one which will set the standard for future development in Harrisonburg and Rockingham County. With this in mind, we hope to create a community resource that employs the best practices in bicycle and pedestrian transportation infrastructure and applies them to our context. We hope the Northend Greenway will be a place for families, individuals, and groups to enjoy themselves, and that it will be an accessible means of recreation and transportation for individuals of many ages, ethnicities, income levels, and physical abilities. We want to bring the best of the world to Harrisonburg! For more information....
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New gated luxury community for JMU students on Port Republic Road? |
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![]() Aspen Heights LLC, is attempting to rezone a 23-acre parcel of land on Port Republic Road (shown above) for a gated, luxury community for students. The city has some doubts, per the Daily News Record article, which seem to include the current glut of student housing in Harrisonburg, as well as the surrounding largely owner occupied neighborhoods. ![]() Some of the student housing developments that Aspen Heights, LLC has built (yes, the photo above is a student housing development) seem quite nice. View photos of their communities, their current locations, and what they believe sets them apart as a student housing community. This Tuesday there will be a Planning Commission meeting to discuss this potential rezoning. In other related student housing news, you'll notice some new student housing popping up on Stone Spring Road near the RMH Wellness Center. | |
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Luxury Gated Apartment Community in Harrisonburg? |
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![]() As per the Daily News Record this morning, Harrisonburg may soon (2014) have its first gated community featuring luxury apartments. Most of these apartments (~70%) would be one bedroom apartments and would be geared towards "transient professionals" per the developer, Dain Hammond. The 200+ unit development on six acres at the corner of Port Republic Road and Stone Spring Road would feature a triangular, 4-story building with a large courtyard and pool in the center of the building. "Hammond envisions the development appealing to renters seeking upscale short-term housing. That would include RMH doctors who may perform surgeries at the hospital a few times a week and need a nearby "crash pad," or a visiting professor at James Madison University for a year, he explained. "It's more for the ‘transient' professional," Hammond said. "That's our target demographic." Read the full Daily News Record article here. | |
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Developers continue campaign to end homelessness amongst local college students |
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![]() OK, so perhaps homelessness amongst local college students is an imaginary problem --- but if it were an issue, local student housing developers are certainly being VERY proactive in making sure there will be plenty of housing for college students for a LONG time into the future. Per the Daily News Record yesterday, the student housing project on Stone Spring Road is now underway again after having stalled for several years. When it stalled, I had hoped that the developers (both local and out of state) had seen the light and realized that the local student housing market was oversaturated. But alas, these facts don't seem to be influencing their decisions. From the DNR article.... Harman (the local developer) said he's not concerned about the potential surplus of student beds. "We're just building our project," he said. "I'm not paying attention to what everybody else is doing." As a side note, that does seem to be a winning strategy, as many or most of the newer complexes have not had any issues in becoming fully leased. So, why am I a bit less than neutral on this news? Well, the student housing market is a bit out of kilter (supply exceeds demand) and this new development will tip it even further out of balance. An out of balance market tends to be an unhealthy market, and in this case it can negatively affect individual property owners (in student complexes) much more than it will ultimately affect larger corporate owners of student housing. For further reading.....
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The unspoken East-West Divide of Greater Harrisonburg |
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![]() I don't know if Interstate 81 is really the dividing line, or if there actually is a dividing line -- but I have found that many (most?) home buyers are strongly oriented to one side of Harrisonburg or the other. EAST: Most of the residential development over the past ten to fifteen years has been on the East side of Harrisonburg, in the general vicinity of the new hospital. This makes it an exciting place to live -- for some people. There are many newer developments where homes have recently been built, and there are newer commercial destinations (Martin's grocery store, Target, etc) all on the East side of town. But this also makes it a bit more hectic for getting around. Of note, there is also plenty of outbound traffic East of town, towards Massanutten, Elkton, Charlottesville, etc. WEST: There hasn't been as much residential development West of Harrisonburg over the past ten to fifteen years (other than Belmont and Monte Vista Estates) and this is just fine with most people who live on the Western side of Harrisonburg. Things are a bit calmer, without as much hustle and bustle, and in some cases with more established neighborhoods. The towns of Dayton and Bridgewater end up falling into this side of town as well for many people. I am not doing justice to all of the differences between the East side of town and the West side of town, but I believe that most people in this area are oriented towards one side of town or the other, for very specific reasons. Furthermore, most people who have spent any considerable amount of time living on one side of Harrisonburg likely wouldn't think about moving over to the other side of Harrisonburg. | |
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New Homes Just East of Harrisonburg, Virginia |
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Many of the new homes built in Rockingham County over the past ten (to twenty) years have been built just east of Harrisonburg, in an area bounded by Boyers Road, Route 33, Cross Keys Road and Port Republic Road. Take a look... ![]() These neighborhoods (shown above) offer quite a variety of housing options. Click on a link below to browse currently available homes for sale:
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Historical Building Permit Trends in Harrisonburg and Rockingham County |
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![]() A 20 year history of single family home building permits in Harrisonburg and Rockingham County (shown above) reveals that much of the new home construction is market driven. The past twenty years can be summarized in four main stages:
Data Source: Weldon Cooper Center | |
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Will all of the land for housing developments be taken over by farming?? |
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Not too many years ago concerns were frequently raised about all of the farmland that was being used up for housing developments. In fact, back in 2008 I wrote an article entitled "Will Rockingham County Be Paved Over?" Now, apparently, the tables have been turned..... ![]() (from the Saturday, March 26, 2011 edition of the Daily News Record) It seems that we have a bit of a role reversal here -- a house is being torn down so that land can be used for farming. What will we do now?? Should the home builders rally to save the housing development land from the growing threat of farming?? | |
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It's beginning to look a lot like Fairfax |
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![]() I attended a Realtor Association event last evening that featured the delightful music of Glick and Phillips. I had never experienced their show before, but it was a lot of fun, even if occasionally insensitive or inappropriate. :) They played a lot of songs last evening that poked fun at a variety of towns in this area such as Elkton, Grottoes, Bridgewater and Dayton -- but they also performed several songs (such as "It's Beginning to look a lot like Fairfax") that poke fun at the rapid pace of development in this area. Had I heard this song five years ago (in 2006) I would have smiled, nodded, and thought -- well, they're right, the rapid pace of development certainly is certainly eating up farmland and creating more and more subdivisions all over the county. But I had a different response last evening as I realized that the pace of development has drastically slowed down over the past five years. ![]() As you can see in the graph above, the sale of new single family homes has fallen drastically since a peak of 186 new homes in 2005 down to only 42 new homes in 2010. Thus, it seems that Harrisonburg's explosive growth into a Fairfax-like metropolis has been delayed or avoided. Also, back in 2008 I examined the breakdown of land use in Rockingham County and found that much of Rockingham County will likely never be developed (33% is owned by the government) --- and we still have an extraordinary amount of undeveloped land. ![]() Certainly, though, the source of the Glick & Phillips song inspiration was the creation of so many new subdivisions between 2000 and 2005. Below you'll see a strong concentration of those subdivisions in the area just southeast of the City of Harrisonburg, bounded by Boyers Road, Cross Keys Road, Route 33 and Port Republic Road. ![]() Click on any subdivision in the map above to jump to active listings in that neighborhood. Please know that I'm not accusing Glick & Phillips of being out of date -- but I do think the pace of development, and hopefully our community's view of development has certainly shifted over the past five years. It no longer appears that we are in danger of overtaking Fairfax. Would you agree? | |
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Preston Lake Foreclosure Finalized: Land Transfers To Wells Fargo, Homeowners Association |
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![]() An early rendering of the intended Preston Lake community center A variety of documents were filed at the Rockingham County Circuit Court on Wednesday, February 23, 2011 finalizing the Trustee Sale of Preston Lake subdivision. In Summary: A trustee sale took place on February 3, 2011 on the steps of the Rockingham County Circuit Court, whereby Wells Fargo (as the only, and thus highest, bidder) contracted to buy back Preston Lake from its developer. Now, the deeds have been recorded transferring the bulk of the subdivision to Wells Fargo and the common areas to the Homeowners Association. The Value of 124+ Acres: The consideration paid by Wells Fargo for the 124+ acres was $3,500,000, but the trustee's deed also indicates that the appraised value is/was $4,530,000. Somewhat astonishingly, the two loans (notes) that were being foreclosed on appear to have been for a sum total of $20,500,000. The New Owner of Preston Lake: The grantee on the deed is listed as "REDUS VA HOUSING, LLC" -- an LLC registered in Deleware. The grantee's address, however, is Wells Fargo Bank out of Jacksonville, Florida. Value of the Common Areas: Per the deed transferring the common areas to the Homeowners Association, the common areas have an assessed value of $323,700. ![]() What Conveyed To The Homeowners Association: The map above is based on an early engineering plan for Preston Lake. I have deciphered (to the best of my ability) the deed, and recorded plats for Preston Lake to mark on the map (letters in circles) the areas that conveyed the the Homeowners Association. Click on the map for a high resolution PDF, and scroll to the bottom of this post for the source files for the deed and plats. Management of the Homeowners Association: The Homeowners Association's mailing address is referenced in the deed as the same Jacksonville, Florida address for Wells Fargo. Homeowners at Preston Lake have been informed that Wells Fargo will be hiring an association management company in the very near future to handle the business of the association. What's Next: Now that the remaining land comprising Preston Lake is owned by Wells Fargo, my assumption is that:
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New home sales may be improving in and around Harrisonburg |
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![]() New home sales may be improving in and around Harrisonburg -- based totally on anecdotal evidence. Several of the builders I work with have seen significantly increased activity since the first of the year, and this is after several years of declining new home sales, as shown below. ![]() It somewhat stands to reason -- as I pointed out yesterday, housing supply has been dwindling over the past six months. There was a 23% drop in listing inventory between July 2010 and January 2011, as compared to only a 5% drop during the same time period a year earlier. Fewer homes for sale leads to fewer selections for home buyers, leads some buyers to start exploring new construction homes once again. The trend over the past few years away from new homes was a matter of re-sale homes being more affordable than new homes. It was nearly impossible to build a new home at the same price that some re-sale homes were selling for in the market. Now, however, builders who have compelling products to offer, with competitive pricing, stand a chance to see a solid improvement in sales during 2011. | |
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Preston Lake Foreclosure Auction Results In $3.5M Sale To Wells Fargo |
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The Preston Lake Trustee Sale took place today (February 3, 2011) at noon, and drew quite a crowd of Preston Lake homeowners, developers, attorneys, Realtors, and neighboring landowners. Here's an overview of where things stand.... Local History in the Making: It's not necessarily the good type of history, but this was the first major subdivision --- and hopefully the last --- to be foreclosed on in the Harrisonburg area. Many other areas across the country have seen multiple large subdivisions be foreclosed on, but until today, Harrisonburg had been unscathed. The timing of the development of this subdivision is likely what led us to today's events, as the development began just as the housing market began to slow dramatically. Only One Registered Bidder: Only one individual registered as a potential bidder at the sale (by showing his deposit check to the Trustee, and providing his name), though he did bid during the auction, likely because of the opening bids from Wells Fargo. Only One Actual Bidder: There was only one actual bidder....Wells Fargo. Surprise Rowhouse Auctions: In addition to the 120+ acres of land at Preston Lake that were auctioned off today, four rowhouses were also auctioned separately. This was not specifically advertised -- if it had been, I think we would have seen some actual bidding take place. Each of these rowhouses are at a different stage of completion, but each at least has the shell completed. The opening bids from Wells Fargo were as follows, and these are the prices at which they are taking back the properties:
The Common Areas: The attorney representing Wells Fargo also indicated that the common areas would be deeded to the Property Owners Association. The Association will still exist, and owners will still make payments to it to support the maintenance of the common areas and other common amenities of the neighborhood. What Happens Next: In theory, within 30 days, Wells Fargo will close on their purchase of the four individual rowhouses, and the 120+ acres of Preston Lake. The attorney representing Wells Fargo commented to me afterward that he thinks there is a 90% chance that the sale will proceed to closing and that Wells Fargo will be the new owner. After Wells Fargo owns the property, he indicated that they would sell the four rowhouses individually, and seek to sell the remaining 120+ acres to a new developer. It is unclear what price they will ask for the remainder of the subdivision (likely lower than $3.5M), and it is unclear what price they will eventually take for the remainder of the subdivision (likely lower than $3.5M). Wells Fargo's attorney also indicated that while they will attempt to sell the entire undeveloped section of Preston Lake as a whole to one developer, it is also possible that they would sell the property as individual lots or sections of lots. Wells Fargo has done this with other subdivisions around the country that they have foreclosed on, though it is not their goal. Wells Fargo is interested in money: This should come as no surprise, but Wells Fargo's goal in being the new owner of the undeveloped areas of Preston Lake are to try to recoup as much as possible of the money that they have invested in the subdivision. They won't, thus, try to unload the property for development into a mobile home park -- they will be marketing it and working to sell it for its highest and best use. This does not mean that the development plan won't or can't change -- but they will be trying to recoup as much money as possible, and thus will be trying to sell it to a developer who has the a positive (and profitable) vision for it. Those Pesky Lawsuits: The developer of Preston Lake (Richard Hine) had filed a lawsuit against Wachovia (now Wells Fargo) --- and Wachovia had responded with a countersuit. Per the attorney representing Wells Fargo, both of those lawsuits will go away once the sale closes, and the property is taken back by Wells Fargo. A Community United: If anything, the turmoil and uncertainty over the future of Preston Lake seems to have drawn its residents closer together as a community. Most of the owners were in attendance at the sale, and then went as a group to Cally's afterward to have lunch. There seems to be solidarity and general optimism (as much as is possible) amongst most (or all) of the owners. They still seem to thoroughly enjoy their homes, and each other, which is a positive sign for the future of the community. Have Questions? If you have questions about Preston Lake or the foreclosure proceedings, I'm happy to try to answer them (540-578-0102, scott@HarrisonburgHousingToday.com), or you can contact Peter Barrett of Kutak Rock, LLP, who is the attorney representing Wells Fargo. You can reach Mr. Barrett at 804-343-5237 or peter.barrett@kutackrock.com. | |
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Preston Lake Headed To Foreclosure? |
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![]() Per a Trustee Sale advertised in today's Daily News Record (view ad), the bulk of the Preston Lake subdivision may be headed to foreclosure. This doesn't necessarily mean that the foreclosure sale will take place, but this is a significant step in that direction. Preston Lake is Harrisonburg and Rockingham County's first master planned community, intended to include nearly 500 townhomes and single family homes, a large section of retail stores with a main street appearance, and many amenities such as a community center, soccer fields, swimming pool, and more. ![]() The vision.... ![]() Main Street renderings ![]() Amenities at Preston Lake Now, however, all of those plans may be coming to an end, at least for now. On February 3rd at 12:00 p.m., 124.693 acres of Preston Lake is scheduled to be auctioned at the Rockingham County Circuit Court. Please note that an advertised trustee sale (all that has happened thus far) does not necessarily mean that the foreclosure process will take place. This wasn't the first sign of trouble for Preston Lake, as the developer of Preston Lake and its lender (Wachovia) have been in the midst of legal proceedings for almost a year now, as described in the Mar 2, 2010 article from the Daily News Record: Preston Lake Homes and its developer, the Hine Group, filed claims against Wachovia in Rockingham County Circuit Court on Dec. 11 for breaking its loan contracts, according to the lawsuit. Preston Lake is seeking $32.4 million in damages for lost profit. Wachovia filed a counterclaim in U.S. District Court in Harrisonburg on Dec. 29. The Charlotte, N.C.-based bank is suing Preston Lake for $15.6 million in outstanding debt. While it was happening quite slowly, residential construction at Preston Lake had been continuing even over the past year. Since the first closing in 2008, there have been 37 sales at Preston Lake recorded in the HRAR MLS, ranging from $318k to $883k, with a median price of $421k. Three of these sales took place as recently as the fourth quarter of 2010. Today, only four properties are being marketed for sale at Preston Lake per the HRAR MLS -- three are resale properties, and one is being sold by the developer. (view active listings at Preston Lake) A few notes about the foreclosure sale:
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Sales Updates at Preston Lake in Harrisonburg, VA |
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![]() An early rendering of an estate home to be built at Preston Lake. ![]() An early rendering of the Charleston Rowhouses to be built at Preston Lake. In the Beginning The news of Preston Lake first broke in October 2005. Here's an excerpt from the Oct 26, 2005 article from the Daily News Record: The southwest corner of the intersection at Massanetta Springs Road and U.S. 33 could become home to a development like no other in Rockingham County. The Hine Group LLC, a Virginia limited liability company, along with an affiliate entity known as Preston Lake LLC of Port Jefferson, N.Y., has contracted to purchase 145 acres of the Preston Farm properties, according to a statement prepared by The Hine Group LLC and Preston Lake LLC. Together, the entities plan to develop a mixed-use center, the statement says, which provides both residential and commercial functions on the site at Massanetta Springs Road and U.S. 33. Included in the proposed development would be 466 town homes and single family units as well as a commercial area that would have a "Main Street" appearance, the statement says. Sales by the Numbers Now, nearly five years later, progress is still being made at Preston Lake, but not at the pace that was originally anticipated. Certainly, the enormous changes in the financial markets and the housing market over the past five years have played a large role in the change of pace at Preston Lake. Let's take a look at residential sales at Preston Lake per the MLS... ![]() Per the data in the MLS (reflected above) there have only been seven single family home sales, but I believe the count is actually closer to twelve when including custom contract builds that may not have shown up in the MLS . It would seem that detached homes can be built at Preston Lake for anywhere between $350k and $900k. ![]() Rowhouse sales have certainly slowed down in 2010, but over the past three years have been selling between $300k and $550k. What's Available Now? There are currently 14 active (or under contract) listings in the HRAR MLS, priced between $299k and $814k. Five of these homes are under contract. The Big Picture Many developments of this scale (as close as Charlottesville) have failed over the past few years as housing markets faltered across the country. It is remarkable, and notable, that Preston Lake (slowly) marches onward. Construction on the commercial parcels has not yet begun at Preston Lake, partly due to a sluggish retail market across the country, and partly because the layout of the commercial area at Preston Lake still may be in flux as a result of the yet-to-be-fully-funded South East Connector Road. The developer of Preston Lake and its lender (Wachovia) are in the midst of legal proceedings, as described in the Mar 2, 2010 article from the Daily News Record: Preston Lake Homes and its developer, the Hine Group, filed claims against Wachovia in Rockingham County Circuit Court on Dec. 11 for breaking its loan contracts, according to the lawsuit. Preston Lake is seeking $32.4 million in damages for lost profit. Wachovia filed a counterclaim in U.S. District Court in Harrisonburg on Dec. 29. The Charlotte, N.C.-based bank is suing Preston Lake for $15.6 million in outstanding debt. Moving Forward So, what's next for Preston Lake? My best guess is that residential development will continue (slowly) and that commercial development will eventually take place. The retail development, however, will likely not take place until the economy improves such that retail businesses (independent and franchises) are looking to expand once again. If you have questions about Preston Lake, feel free to call (540-578-0102) or e-mail (scott@HarrisonburgHousingToday.com) me. My parents live at Preston Lake -- they built a cottage home when they relocated to the Shenandoah Valley -- thus I'm in the neighborhood quite a bit. | |
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The Future of North Valley Pike (Route 11 North) |
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![]() There is a slowly growing area just north of Harrisonburg that you may not have heard of or visited, but there are a variety of factors that may make it a growth area over the next several to many years. ![]() A strategic plan has been created for this North Valley Pike corridor, that suggests turning an existing section of Route 11 into a main street area, with most through traffic diverted to a new road. For an overview with lots of helpful links, read the post on hburgnews. ![]() A research and technology park has been established amidst this corridor on 365 acres, owned and operated by Rockingham County. ![]() SRI International has established a 25-acre campus in the above-referenced research and technology park, and opened the Center for Advanced Drug Research, which is a "state-of-the-art research facility for conducting systems biology research in the areas of biodefense and neglected diseases." ![]() An attractive subdivision of single family homes is being developed in this corridor area (I am marketing this subdivision) with prices starting in the low $200,000's. ![]() A new elementary school was recently built on Smithland Road, not too far from this North Valley Pike corridor. This has created new traffic flow patterns, bringing greater awareness to the north side of Harrisonburg. While most development has taken place just southeast of Harrisonburg in the recent past, the area just north of Harrisonburg will be a key area to watch over the next 3 to 20 years. | |
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Do You Think Harrisonburg's Student Housing Vacancy Rates Are High Now? You Haven't Seen Anything Yet! |
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![]() As reported in detail at hburgnews, a new student housing complex is one step closer to being built on South Main Street. The 60 acre tract is proposed to feature 466 apartments for college students --- but wait, certainly the developer would first be examining the state of the current student housing market --- right?? Let's take a quick look at what has happened over the past several years in Harrisonburg's student housing market: In Fall 2007, there was a relatively even balance between JMU students living off campus, and housing available for said students. There were 11,654 students, and approximately the same number of "beds" (bedrooms in apartments, etc) available for those students. Between Fall 2007 and Fall 2009 the the number of off campus students increased by 382 students. But.... there were 3,313 new beds for these students! This huge increase in housing included new complexes (Charleston Townes, North 38, Campus View Condos, 865 East, Copper Beach, Urban Exchange) and additions to current complexes (Sunchase, new JMU residence hall). This left an off campus vacancy of roughly 20% --- with 12,036 off campus students compared to 14,967 off campus beds for students. While growth is still occurring at JMU, it is quite slow because of state budget cuts for higher education. Thus, the vacancy rate for Fall 2010 will likely only decline to 18.5%, and per my projections, by the time we get to Fall 2013, there will still be an off campus vacancy rate of 15% --- with 13,090 off campus students compared to 15,387 off campus beds for students. But it seems that a company out of Glen Allen, VA is ready to jump into this exciting student housing market, add help pump that vacancy rate up even higher. This new community will bring 466 apartments, described as 1, 2 and 4 bedroom apartments, laid out per the site plan below. ![]() Let's assume 1/3 of the apartments are 1 bedroom, 1/3 are 2 bedrooms, and 1/3 have 4 bedrooms. This equates to roughly 1,087 new beds for students. They'd like to have them finished for Fall 2011, which means we'll have 12,588 off campus students available to fill 16,286 off campus beds, shooting us up to 23% off campus vacancy. But the best part yet --- where will this student housing be located? Next to JMU campus? In the midst of other student housing? No and No. This complex is quite a distance from JMU. ![]() Again, read more at hburgnews, as there are a few detailed comments on that site that explain some of the history of the property. SUMMARY: Student housing vacancy in Harrisonburg currently hovers around 20%. A developer is planning to build, likely increasing the vacancy rate to 23%. If I were the developer, I would not develop it as a student housing complex in this community at this time. What are your thoughts? Questions? | |
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Will You Be Buying A New Home in Harrisonburg or Rockingham County? |
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If you are considering the purchase of a new home in Harrisonburg or Rockingham County, you may want to check out HarrisonburgNewHomes.com, where you'll find an overview of many of the new communities being built in our area. ![]() I represent the builders of each of these communities, and am assisting them with the marketing of the new single family homes, duplexes and townhomes. For more information about any of these neighborhoods, feel free to contact me or one of the other Realtors also marketing these communities:
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
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