Development
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New Urbanist Community, Collicello North, under development in Harrisonburg |
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 Collicello North is a new community being developed on the north end of Collicello Street (see map below) being developed as a smaller, more intimate and sustainable neighborhoods within walking distance of entertainment, recreation, shopping and public transportation. Dean Weavers of Blue Ridge Architects explains his vision for the community: Read more on the Blue Ridge Architects blog.  | |
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Details of Sale of Preston Lake Subdivision |
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 The bulk of Preston Lake subdivision (mostly undeveloped building lots) was foreclosed on in 2011, but last week was purchased by a neighboring land owner --- a developer from Maryland. After some further research, here is what was conveyed:
Thus, if we ignore the fact that roads, water and sewer need to be installed on those 43.5 acres (outlined above in red), this was essentially the purchase of:
And here is a bit of context on the purchase price:
So, how much was paid for each lot? Well, let's assume that a single family home lots is worth twice as much as a rowhouse lot --- and that a finished lot (with infrastructure) is worth twice as much as a planned lot. If that were all the case, this new developer essentially paid:
If you refer back to the amount of debt that was foreclosed on ($20M) and compare that to the new purchase price ($2M) we can assume that the previous developer's lot basis was 10 times higher ($100K for single family home lots, etc). Stay tuned! UPDATE: After further review of the deed transferring the property from Wells Fargo, I am now noticing that the new developer has agreed to pay a "Subsequent Fee" to Wells Fargo of 2% of the gross sales price of any of their newly acquired properties (building lots or lots where they have built homes) when it closes. This only applies to transfers within the first five years. | |
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Preston Lake Acquired By Neighboring Property Owner (Development Company from Maryland) |
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 According to a letter from Brian D. Goldstein, Vice President if Development for NAI The Michael Companies, the residential property at Preston Lake has been sold by Wells Fargo to a new entity known as MLK Preston Lake, LLC. A letter, excerpted below, was sent to current Preston Lake homeowners yesterday.... It is with great pleasure that I am writing this letter on behalf of MLK Preston Lake, LLC, the new owner of the Preston Lake Residential property. Being already invested in and committed to the success and vitality of the area through ownership of a portion of the adjacent commercial property, we look forward to reinvigorating the Preston Lake Residential development with this acquisition. We are confident that the existing homeowners in the neighborhood, Rockingham County officials, and the entire surrounding community will be very pleased with the quality and expertise that we will bring to Preston Lake.This excerpt from their web site speaks to the development background of the NAI Michael Companies, based in Lanham, MD.... Kenneth H. Michael, founder and Chairman of the Board of NAI Michael, created a Development Consulting Division to assist landowners and developers through the then increasingly complicated permit approval process. Over the years, as the approval process has become even more complex, time consuming, and technically demanding, NAI Michael's Development Consulting Division continues to stay abreast of the changes and requirements associated with the development process.The Michael Companies also seems to be amidst the development of a $900 million, 382-acre, upscale mixed-use community in Prince George's County. While The Michael Companies might be an out of town (out of state!) development company, they are no stranger to the Harrisonburg and Rockingham County area -- nor the general vicinity of Preston Lake. Over the past several years they have purchased a variety properties surrounding Preston Lake including (but not limited to) those outlined on the map at the top of this post. For a bit more context (and history) of Preston Lake, consider reading....
And, if you're excited about the reinvigoration of Preston Lake, you might want to buy my parents' house in Preston Lake....
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JMU expands its footprint along University Blvd |
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 The JMU Real Estate Foundation purchased a commercial building on University Boulevard that currently houses Tuesday Morning, Hair Works, and AllState. The building is located between Blue Ridge Hall and the Oriental Cafe (red marker on the map above) and you will note that this purchase expands JMU's southeastern corner a bit further towards the intersection of University Blvd and Reservoir Street.  The only remaining parcels on the corner are Sheetz, the shopping center containing The Oriential Cafe, and the Rescue Squad. The lot and building were purchased for $1,250,000 and there no specific plans for the building or land at this time. JMU intends to continue leasing the property to the current tenants. | |
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Approved 160-Acre Mixed Use Development in Harrisonburg, VA For Sale Priced at $8M |
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 This mixed use development located between Country Club Road, Linda Lane and Smithland Road is one of the only large developments left be built out in Harrisonburg. This project was approved several years ago, but development of the project never began. As approved by the City, The Quarry would include commercial space, single family homes, townhomes, apartments and condominiums.  Click the Site Plan above for a larger version. This property is listed by Tim Reamer of Cottonwood Commercial. | |
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More residential development on Port Republic Road |
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 There is a lot planned for Port Republic Road --- likely related to the relocation of Rockingham Memorial Hospital, and the widening of Port Republic Road. We recently talked about the following new developments coming on Port Republic Road....
And now, I'm finding more details online about the residential development to take place at Stone Port. Here are details of the residential development at Stone Port, from their web site....
All of the above (Aspen Heights, Stone Spring Courtyard, The Reserve at Stone Port) are all indications of a recovering, growing local economy.
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Site Plan for Aspen Heights, Stone Spring Courtyard, Campus View Condos |
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It has become a part of my routine to take a look through the City of Harrisonburg Planning Commission board packets, as these are available for public consumption, and often have some interesting insights into forthcoming developments in the City of Harrisonburg. Read on for some highlights of what will be discussed during the October 10, 2012 meeting (at 7PM).  Above is the site plan for Aspen Heights which is the new gated student housing complex being built on Port Republic Road. View more details on their Facebook page or web site. Per the site plan, there will be 183 buildings with a total of 600 bedrooms.  Above is the site plan for Stone Spring Courtyard (here as a PDF) the new luxury gated apartment community on Port Republic Road.  Above is the revised, proposed site plan for Campus View Condos (here as a PDF) showing the new layout of buildings as proposed by the new developer of the complex. The original developer was foreclosed on, and the new developer is proposing to 108 apartments in 8 buildings, instead of the same number of units 9 buildings. View the full Planning Commission board packet (and from previous meetings) here. | |
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Conference Center (and hotel) coming to Downtown Harrisonburg? |
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Last night the Harrisonburg City Council discussed a proposed conference center and hotel to potentially be built in downtown Harrisonburg. The proposal went before City Council because the developers are seeking public funding for part of the project. City Council made a decision to seek competing proposals, which are due to the City by Nov 13, 2012. After competing proposals have been received, the City can decide whether to move forward with a feasibility study to provide more data with which to make a decision about whether to provide the public funding for this project. The hard costs of the potential feasibility study will be paid by the City with funds paid by each developer that submits a proposal. The project team that is working on this proposed conference center and hotel include:
dpM Partners is based out of Gaithersburg, MD, has recently developed a Westin Hotel in Virginia Beach. Its principal, was the lead developer on the Stonewall Jackson conference center in Staunton and he is also a JMU graduate. The W.M. Jordan Company (proposed general contractor) recently completed the Hilton at Short Pump. The proposed conference center facility would be 18,180 square feet --- twice the size of the JMU Festival Conference Center --- and would be the largest conference center between Northern Virginia and Roanoke. The hotel would feature 205 rooms and would have a full-service restaurant. If eventually approved, the City would be contributing nearly $10 million of public funds to this project in the way Tax Increment Financing Bonds. The specific site has not been publicly identified, for competitive reasons, but it is in downtown Harrisonburg within walking distance of Main Street. I believe this is exciting news for Harrisonburg as it could potentially grow our local economy even further by bringing regional conferences into our area. It would also certainly be a boon for downtown retail businesses and restaurants. Stay tuned -- within the next 60 days the City will be seeking competing proposals, and then they will be deciding whether to move forward with a feasibility study. | |
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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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Scott Rogers
Funkhouser Real
Estate Group
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scott@funkhousergroup.com
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