New Construction
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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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Updates on Preston Lake Subdivision |
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 If the development of Preston Lake had taken place just five years earlier, it might have been a much greater, faster, happier success story. Given its timing, however, Preston Lake was developed and constructed at a very slow rate, which recently reached a significant milestone when Wells Fargo foreclosed on the remaining developed lots at Preston Lake. Why did it happen? It could have been the decline in the housing market....or the decline in the national economy....or that the developer's bank (Wachovia) went out of business....or many other reasons. Regardless of the cause, the development and construction of Preston Lake was much slower than anticipated, and is now in a state of limbo. Here's a re-cap of where things are at Preston Lake, with a few bits of new information: Homeowners Association: The Preston Lake Homeowners Association is still controlled by the developer, which is now effectively Wells Fargo. For now, however, the on-the-ground association management is being handled by a Harrisonburg-based association management company, and thus far it does seem as if any services to residents will be interrupted, nor will dues increase. Ownership of the Land: The undeveloped residential lots all transferred to Wells Fargo (or REDUS VA HOUSING, LLC as it appears at the courthouse). Read more. Ownership of the 4 rowhouses: Most people attending the foreclosure auction were surprised to hear the announcement that morning that separate from the auction of all of the undeveloped lots, the bank would be auctioning off four rowhouses at various states of completion. Since potential bidders were not prepared to consider purchasing a rowhouse, all four of these properties were bought back by Wells Fargo. Further details follow....
 Southern Classic, Inc: The company that purchased the three yet-to-be-finished rowhouses seems to be a company based out of Crozet/Charlottesville. Presumably, Southern Classic will be finishing the rowhouses and offering them for sale. Southern Classics is an Earthcraft certified builder, and is involved in developing several smaller communities including:
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Do most homes have bedrooms on the first floor? |
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Apparently this varies by region --- in a conversation earlier this week someone was sharing with me that in each part of the country where they had lived, it was a bit different. In one part of the country, nearly every home had a bedroom on the first floor. In another part of the country, only a very small number of homes had a bedroom on the first floor. What is your guess for Harrisonburg and Rockingham County? 64% of currently available single family homes offer a bedroom on the first floor! This was a bit surprising to me, as I assumed it might be less than half of all homes. I will often have buyer clients that are requesting this feature in a home and it seems to limit their options --- but apparently not too significantly. Breaking it down by price range, there also isn't much variation:
49% of currently available multi-level single family homes offer a bedroom on the first floor! Looking just a little bit further, let's examine whether there is a difference in "sellability" of homes with vs. without a bedroom on the first floor. When examining multi-level homes sold in the last year:
Are you considering buying a home, or building a home? Do you have questions about what you should be looking for or avoiding in a house? I'm happy to share my opinion, or the facts as shown by home sales data. Call me at 540-578-0102 or e-mail me (scott@HarrisonburgHousingToday.com) and we can discuss your situation. | |
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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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To hire a custom builder, or to buy a re-sale home --- it's a tough question these days! |
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The abundance and low prices of re-sale homes can cause great frustration for custom home builders these days. Over the past few months I have had lengthy conversations with several clients who want to build a new home.....but then they get sidetracked by re-sale homes. They start out, you see, quite focused on buying a lot, selecting and designing floor plans, hiring a builder, and building their dream home ---- but WAIT! Just before they tip the first domino, they take a look online at a few re-sale homes and they start to second guess themselves. They're about to build a $400,000 home, and they think they see comparable re-sale homes (that are only a few years old) for only $350,000. Or they're about to build a $475,000 house, and there seem to be quite a few comparable $430,000 homes that are only a few years old. My universal answer to this angst is to suggest that we spend some time viewing the re-sale homes. I suggest to them that looking at the re-sale homes will DEFINITELY give them their answer. They'll either confirm their decision to hire a custom builder --- or they'll fall in love with a re-sale home and move forward in that direction. You'd think, with the price gaps we're discussing, that these clients would often end up buying a re-sale home --- but that's not usually what happens. While there are some compelling re-sale houses for sale, they almost always determine that they'd rather pay more to have a house exactly how they want it. Sometimes this is the floor plan, sometimes the neighborhood, or the lot size or topography, or the exterior materials of the home, or the interior finishes, or the level of maintenance needed into the future, or the views.......or a combination of many of these. Sometimes this process will result in one of my clients deciding to buy a re-sale (instead of hiring a custom builder), but it almost always is a process that helps to confirm their decision to move forward with a custom build. If you're in this situation --- ready to build, but full of self-doubt when examining the re-sale market --- please be in touch. I'd be happy to help you explore the re-sale market to either confirm or derail your current plans. | |
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Founders Way Condos Proving Popular With Buyers |
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Full Disclosure: I represent the developer of Founders Way. Harrisonburg home buyers haven't had too many condo options to choose from in the recent past if they actually wanted to live in the condo....
 Now, however, there is a new option in town --- Founders Way Condominiums. The condos at Founders Way feature 2 or 3 bedrooms, and start at only $142,900 (see all pricing). These newly built condos feature upscale kitchens, an open floor plan and spacious master suites -- think hardwood laminate floors, granite countertops, contemporary lighting fixtures, nine foot ceilings, decorative archways and colonnades, etc. Oh, and quite a few of these new condos are selling! The community will eventually consist of 72 condos -- but for now the first building of 12 has been constructed, and the condos are at various stages of completion. Of the twelve condos in the first building at Founders Way....
Let me know if you'd like a tour of Founders Way --- I'd be happy to meet you on site. You can reach me at 540-578-0102 or scott@HarrisonburgHousingToday.com. | |
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Founders Way, New Condo Community in Harrisonburg, Wins Parade of Homes Awards |
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 If you haven't stopped by Founders Way yet to see these newly finished condominiums, you might want to considering doing so this coming weekend during the SVBA Parade of Homes. Founders Way won several awards including Realtors Choice, Best Interior, Best Exterior and Best Overall. But let's give Founders Way some context.... There are lots of townhouses for sale in Harrisonburg priced around $160k, with 1300-1400 square feet. The condos at Founders Way are similar ($160k, 1300-1400 SF) but they have some significant differences.
For more information, visit FoundersWay.com or call me at 540-578-0102 to schedule a time to look at this very new and very exciting product in our market. | |
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Virginia's New Home Warranty Doesn't Apply If You Hire A Builder To Build On Your Own Building Lot |
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  In Virginia, each newly constructed home must convey to the purchaser with a warranty from the builder, as outlined in the Virginia statute (55-70.1) entitled Implied warranties on new homes. In brief, the builder must warrant the construction of the house for one year, and the foundation for five years.One important thing to note, however, is that this required warranty on new homes does not apply if you first buy a lot and then hire a builder. Here's the first section of the statute that speaks to this: "In every contract for the sale of a new dwelling, the vendor shall be held to warrant to the vendee that, at the time of the transfer of record title or the vendee's taking possession, whichever occurs first, the dwelling with all its fixtures is, to the best of the actual knowledge of the vendor or his agents, sufficiently (i) free from structural defects, so as to pass without objection in the trade, and (ii) constructed in a workmanlike manner, so as to pass without objection in the trade." The issue, you'll note above, is that if you hire a contractor to build a house on your own lot, you are not in a contract for the sale of a new dwelling. There will not be a conveyance of real estate -- title will not transfer -- you already own the real estate and are hiring someone to improve it. From talking to a local real estate attorney, there are likely still construction quality expectations of builders of new homes when you have contracted with them to build on your own lot --- but those are are not neatly summed up in a statute. They are, instead, a part of the "common law" --- the aggregation of laws as defined by judges making rulings about such matters over the years. Click here to learn more about the Virginia one year new home warranty. | |
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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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What Type Of Housing Is Being Built In Harrisonburg And Rockingham County |
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 One way to take a look at what is being built in and around Harrisonburg is by examining the Harrisonburg / Rockingham MLS to analyze listings circa 2009+. First, or note, a full 14% of listings currently for sale in Harrisonburg and Rockingham County appear to be new construction. (113 homes out of 793 homes). Here's a big picture summary of these new homes for sale in our market:
Also . . . enjoy the first edition of Harrisonburg Real Estate Radio: Home Inspections via Harrisonburg Real Estate Radio [08:38] | |
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The Most Frequently Used Driveway Materials in Harrisonburg and Rockingham County |
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 If you're building a home, what should you use as a driveway material? There are a lot of options!
Let's take a look at the most common types of driveways in Harrisonburg and Rockingham County. The data source for this analysis is the Harrisonburg/Rockingham Association of Realtors MLS, so it's an inexact analysis, but can still provide some helpful insights.  The chart above shows that the most common driveway material for single family homes in Harrisonburg and Rockingham County is gravel! Beyond gravel drives, which are likely found mostly in the County, the most frequently occurring driveway is an asphalt driveway. Let's take a closer look at driveways of single family homes in the City of Harrisonburg, to exclude the more "rustic" driveways found on homes further out in the County . . .  In the City of Harrisonburg, a full 1 in 5 driveways is still gravel, though asphalt driveways now lead the pack, with a full 10% greater market share than concrete driveways.  The graph above analyzes "expensive" homes --- those sold above $350k in the last year in Harrisonburg and Rockingham County. Here we find an even more overwhelming share of asphalt driveways, though we also see an increase in the percentage of exposed aggregate driveways.  Perhaps most interesting is that when examining homes sold since Jan 1 2000, we find that most have had concrete driveways. Is this perhaps the sign of a growing trend in our area, or the nation as a whole? Notes: In the last year, 570 single family homes sold in Harrisonburg and Rockingham County (per the HRAR MLS), and the analysis above is based on the 534 sales where driveway data was present and usable. | |
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Want To Buy? Have To Sell? Perhaps We Can Help! |
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It seems that there are quite a few people in our current market who want to buy a house --- but they're at a standstill, because they have to sell their current home before they can buy. It can be a challenge to buy and sell simultaneously, as I pointed out this past September. But maybe there's another way . . . I market several neighborhoods of new homes for Scripture Communities, and just recently the builder (Jerry Scripture) has devised a move up program that has worked for him in the past, and is working again now in our current market. The concept is this: In certain circumstances, Scripture Communities will help you sell your current home, or will even commit to buying your home, if you are buying a new home in a Scripture Community. Does it sound to good to be true? It can be of tremendous help to someone who wants to buy, but most sell in order to do so. As a real, live, example --- we're in the process of building a home now (at Heritage Estates) for someone who is using the Scripture Community Move Up program. If they can't sell their current home themselves by the time their new home is complete, Scripture Communities will buy it from them at an already agreed upon price so that they can close on their new home. There are a few common sense guidelines that we're using when considering these move up scenarios:
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What Is HardiePlank Siding, And Is It Being Used In Harrisonburg? |
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 The exterior of your home could be built with so many different materials, for example: stucco, stone, wood, brick, aluminum, concrete, steel and fiber cement. That last one, fiber cement, is a vague and mysterious siding choice also referred to as HardiePlank siding, which has been around since the 1980's. So, what exactly is HardiePlank siding?? First, HardiePlank siding is a fiber cement, made out of sand, water, cellulose wood fibers and cement. Its source materials and design provide it with a number of unique qualities that often interest homeowners....
HardiePlank comes in all sorts of colors and styles, and you'll start to see it on some newly built homes in this area, for example on the Paired Homes at The Glen at Cross Keys, on this EarthCraft home on Cottage Circle, on most of the homes at Preston Lake, and on Urban Exchange. | |
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Updated Urban Exchange Photos -- We Are Nearing Completion! |
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  Click here to view updated construction photos, showcasing the nearly-complete Urban Exchange! Both buildings (East and West) are now open, as of this pats Thursday. Gym equipment will be delivered in the next few days, and the final construction details will be finalized. To see the exciting developments at Urban Exchange for yourself, feel free to swing by our Leasing Center --- we're open nearly every day of the week from 12p - 5p. Or, call Mary to schedule at 877-548-3831. | |
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East Wing of Urban Exchange Nearing Completion |
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We're now less than four weeks away from the first residents moving into the brand new upscale condos in the East Wing of Urban Exchange located in downtown Harrisonburg. Click on the image below to view updated construction photos.  | |
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New Construction Price Per Square Foot Trends in Harrisonburg and Rockingham County |
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For some time I have been tracking price per square foot trends for all single family homes in Harrisonburg and Rockingham County. These appear in my monthly market report, and show a median price per square foot of $80/sf back in 2002, a high of $131/sf in 2006 and a current value of $123/sf. In talking to a potential developer last week, he inquired about price per square foot trends for new construction. This isn't an easy thing to calculate, for several reasons:
Below you will see the results, with a starting value of $99/sf in 2002, a high of $150/sf in 2006, and a current value of $140/sf.  I also graphed the number of applicable home sales in each year since 2002 to put the market into perspective. Click here, or on the image above, for a clearer PDF version of this graph. Closing thoughts:
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Heritage Estates, 55+ Community in Harrisonburg, Virginia, launches new web site |
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We are pleased to announce that Heritage Estates, a 55+ community in Harrisonburg, Virginia has launched a re-vamped web site . . .  Don't be bashful, tell me what you think of this new web site, in the comments below, by e-mail (scott@cbfunkhouser.com) or by phone (540-578-0102). Some exciting additions to the web site include:
Heritage Estates is an active adult community located in Harrisonburg, Virginia. Heritage Estates boasts superb French Country architecture with flowing interior floor plans that are wonderful for entertaining.You'll also enjoy spectacular views of the Blue Ridge Mountains, the golf course immediately beside Heritage Estates, the community swimming pool, and a maintenance-free lifestyle. | |
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Urban Exchange bridge installation scheduled for Tuesday at 8AM |
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 Yellow, Red Bridge to be installed on Tuesday! All day tomorrow (Monday) we'll be setting up a HUGE crane next to the Urban Exchange construction site. Then, on Tuesday between 8:00 a.m. and 10:00 a.m. we'll be using the crane to (carefully, slowly) lift the red bridge and the yellow bridge over top of the East Wing, and down between the wings to span the courtyard area. Feel free to drive by to see the action, or watch it live from across the street! Call me (540-578-0102) or e-mail me (scott@cbfunkhouser.com) with any questions. Become a fan of Urban Exchange on Facebook! Are you on Facebook? If so, become a fan of Urban Exchange --- click here to visit the Urban Exchange page on Facebook. | |
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
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Commonwealth of Virginia
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