Sperity Real Estate Ventures

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The Seven Hills of Richmond– Church Hill

Article from The Richmond Times Dispatch 1946

The Seven Hills of Richmond seem to have always been a controversial topic in RVA. Today, many people consider the Seven Hills to be a myth.

The truth is, the official Seven Hills were declared in a 1937 ordinance by the City of Richmond but the ordinance was never passed.

Since then, the confusion has only grown larger. In 1947 The Richmond Times Dispatch published an article that attempted to clear the air about the Seven Hills. The article said that there were various lists of Richmond’s original hills and the hills that were found in 1937 were not accepted by the City Council.

Although the Seven Hills were never made official, those neighborhoods have shaped the city’s history and are a part of what make RVA unique.

Church Hill is Richmond’s first neighborhood and home to most of RVA’s original 32 blocks. The Church Hill area is filled with Richmond’s oldest history from the red brick sidewalks and gas street lamps to the classical architectural styles.

St.John's Church 1865

St.John’s Church 1865– Library of Congress

The center of the historic district is  St. John’s Church, built in 1741, it’s where Church Hill gets its name.

St. John's Church 2012 St. John’s is the only Colonial structure in the area that remains intact.

During the 18th century Church Hill was the stomping ground for America’s early revolutionaries, like Patrick Henry. Who’s most well known for his “Give me Liberty or Give me Death” speech at St. John’s Church in 1775.

Richmond Va, Church Hill c. 1850s

A photo of Richmond from Church Hill in the 1850s —Valentine Museum

Classical Church Hill homeHome in Church Hill across from St. John's Church Hill homes near Libby Hill Park

 

*1742— Church Hill population reaches 250.

The history of Church Hill radiates from the streets since most of the area’s real estate was built before the Civil War.

The classic architecture is what makes Church Hill one of Richmond’s most unique neighborhoods.

 

Architectural styles on display throughout the neighborhood include: Greek Revival, Italianate, Federal, and Queen Anne. By the 19th century Church Hill was booming and the population in Richmond had reached 5,730.

 

People began moving to the area for job opportunities in local tobacco factories like the Pohlig Box Factory located on 25th street just blocks away from St. John’s Church. Tobacco factories and industrial buildings provided Church Hillians with jobs and boosted the local population…

[Read more…]

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First Time Home-Buyer? There’s a Class for That.

Good news for any prospective home buyers who may be worried about their credit score and applying for a home mortgage loan – the Richmond Times Dispatch recently reported that new education classes are now available through Community Housing Partners of Richmond (CHP).  The cost? Completely free.

These “Real Estate 101” classes are taught by CHP Housing Counselor, Schirra Hayes, who aims to help those people who are thinking about purchasing a home and have no idea where to begin. The classes are designed to teach new prospective home buyers about the entire home-buying process – from start to finish – and how to stay on track as a responsible homeowner.

The classes are held every Tuesday and Thursday, 5:30 to 8:30 p.m, at Community Housing Partners office building, located at 100 W. Franklin Street.

According to Hayes, home buyers need to make sure their credit file is up to date and in shape, and in taking two sessions of his class, it would qualify first-time home owners for a Virginia Housing Development Authority (VHDA) mortgage application and many other programs.

“Lenders nowadays want to see a really good credit score to circumvent what happened in the mortgage crisis a few years ago,” said Hayes, with Community Housing Partners in Richmond.”

FYI, home buyers must attend both classes – Tuesday and Thursday) to receive a VHDA Home buyer Education Certification to qualify them for a home mortgage.

To learn more about the VHDA or register for a class, contact Hayes at (804) 343-7201, ext. 2035, or email him at shayes@chpc2.org.

And, of course, if you ever have any questions about finding a home to buy, you can always call Bandazian & Holden at 804-358-5543.

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Venture Richmond Forum Unveils New Developments in RVA

After years and years of work throughout the city, Downtown Richmond is finally getting the attention it deserves, thanks to a nearly $1 billion dollar makeover from the state.

This makeover was the highlight of discussion at Venture Richmond’s Annual Downtown Development Forum last Thursday, May 31st, as Richmond’s business leaders, developers and architects met to reveal their latest ideas for up and coming projects.

Proposed projects included the VCU School of Medicine building, the Virginia Biotechnology Park, a 150,000-square-foot addition for Health Diagnostic Laboratory Inc, as well as several apartment buildings in the Manchester and business districts.

Over $120 million is going into creating more residential spaces across the downtown area, according to agbeat.com, who says the recent heightened demand for apartments is a result of the drop in the Multifamily Vacancy Index (MVI).

Fyi, the MVI measures the multifamily housing industry’s perception of vacancies which has recently dropped to a level of 31, an all time low.

“Multifamily construction continues to be a bright spot in the overall housing market,” said NAHB Chief Economist David Crowe, in a report by agbeat.com.

Residential development across Richmond was a large part of the revitalization plans discussed at last Thursday’s forum.  For more information about how the State is funding these different projects, click here.

Another project in the works is by the Franklin Development Group, who is working to revitalize the Manchester District by building a 17-acre development at the Reynolds South Property.

“We’re a long way from closing,” said Franklin Development’s Manager, Thomas Wilkinson, who discussed the possibility of  over 300 apartments, office space and an upscale grocer at Thurday’s forum.

Although the project plans aren’t official yet, Wilkinson assures Richmond-ers  that the development will revitalize the Manchester district and appeal to the area’s increasipopulations on.  Checkouts Richmond BizSense’s coverage of the Reynolds Development for more info.

Millions of dollars from the City are being put into new construction on the VCU campuses, as well as some of Richmond’s most beloved landmarks, including the Main Street Station Clock Tower and 17th Street.

The idea behind Richmond’s makeover? To transform traditonal buildings and warehouses into modern, revitalized structures for public use.

Be sure to keep your eyes open, as these new developments pop up across the city!

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“New” development north of Broad on Staples Mill

About once a month I get a question about the large, vacant property that borders Staples Mill Road that is just north of West Broad Street, right over the Henrico Count line. My answer is always that it was an old, rundown neighborhood that was purchased and cleared with the intention of rebuilding, and that the developer is the same group that is doing the project at Monument Avenue and Willow Lawn Drive — Gumenick Properties. As to why it hasn’t been started, well just look around at new building all around the country. The developer was obviously waiting until the economy turns around.

But, I always have to give that answer with the caveat that the last official word I had heard about it was a few years ago. I couldn’t even be sure that the same plans were in place. Thankfully I can point to this article on Richmond.com that gives us the lowdown on the current situation — which is pretty much as described as above. It sounds as though things are just on hold, but the same big plans are still on the books. In fact, this project is expected to take 10 years even once they finally get underway.

You need to go read the article to see all of the reported details, but I thought I would share a couple of details of the plans here:

What: Staples Mill Centre, proposed to include 1,096 apartments, 571 condominiums, 391 townhouses, 32 single-family homes, 60,000 square feet of offices, and 100,000 square feet of stores.

Where: About 80 acres between Staples Mill Road, Libbie Avenue and Bethlehem Road, near Interstate 64.

[cetsEmbedGmap src=http://maps.google.com/maps?q=Staples+Mill+Rd+%26+Suburban+Ave,+Richmond,+VA&hl=en&ll=37.591213,-77.49316&spn=0.011885,0.026157&sll=37.588289,-77.492216&sspn=0.011953,0.026157&vpsrc=0&hnear=Staples+Mill+Rd+%26+Suburban+Ave,+Brookland,+Henrico,+Virginia+23230&t=m&z=16 width=350 height=425 marginwidth=0 marginheight=0 frameborder=0 scrolling=yes]

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What to do if your landlord doesn’t respond to repair requests?

So you’ve had a roof leak for a while, making the drywall from the ceiling cave in..and who knows, maybe there is mold in there?! You called the landlord or property manager about the problem when you first noticed it, which was 2 months ago, and maybe they sounded like they were going to take care of it (and maybe they didn’t) — but you haven’t heard from them since. What do you do?

This is important. Do not stop paying rent. There is no advantage to be gained legally by withholding rent, even if the place becomes untenable. The courts do not look kindly on a tenant taking that kind of decision into their own hands.

Instead, listen to the advice given in this recent article by Richmond.com, “Don’t Let The Walls (Or Ceiling) Cave In On You“:

  • Be current in your rent
  • Give your landlord written notice of the problem
  • Wait a reasonable amount of time

After a reasonable amount of time has passes, take a copy of the written notice, along with the next months rent, down to the John Marshall general district court at 400 N. Ninth Street. A clerk will help you file a legal assertion.

…

There is a small filing fee of $56 to file assertion. We’ve even tracked down the onlinie form, DC-429, available through Virginia courts here. 

If you stop paying rent, you may still be liable for late fees and other repercussions for being late (i.e., bad marks on your credit or even eviction). You are not alone or powerless against a landlord, but you have to play by the rules that have been set up to protect everyone involved.

Have you been through this process with the courts? I would be grateful if you share your experience below in the comments, so that everyone can learn from it!

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Don’t try to fool the insurance company

Understanding Landlord Insurance

By: Dona DeZube

Published: September 1, 2010

Turning your home into a rental or buying an investment property? Expect to pay up to 20% more for the right insurance policy to protect your property.

 

Rental properties require their own type of coverage–landlord insurance, which is different than the homeowners policy you buy when you live in a house yourself. Landlord insurance protects you against losses from fire, lighting, falling trees, wind and hail, water damage, and injury to your tenants and their guests.

But it doesn’t cover the renters’ household goods. So encourage tenants to buy a renters policy to cover their stuff. You can even include a clause in your lease saying they have to buy renters insurance, so everyone is clear about what’s insured and what’s not.

Landlord insurance is expensive

You’ll pay 15% to 20% more for a landlord insurance policy than you will for a homeowners policy on the same house–and even more if you offer short-term rentals. Start your policy shopping by calling the company that sold you your homeowners insurance, then check with an independent insurance agent selling commercial and business policies.

Ask how you can get discounts if you have fire prevention devices, burglar alarms, or multiple properties.

What a landlord insurance policy probably will cover:

  • Lightning, windstorm, hail, explosion, riot and civil commotion, smoke, falling objects, snow, ice, sleet, vandalism, sonic boom, sprinkler leakage, frozen pipes, water damage, burglary, volcanoes, and sinkholes.
  • Things that belong to you that stay at the property, like appliances, furniture, or lawn care equipment. Keep an inventory of what’s on site.
  • Outbuildings, like sheds or garages, although this coverage will have its own limit (probably 10% of the overall insurance policy amount).
  • Costs to defend yourself against lawsuits filed by tenants or guests, as well as the costs awarded if you lose the case. Some policies cover medical bills for injuries; some don’t.
  • Lost rental income if the property is damaged and you can’t rent it.

What a landlord insurance policy probably won’t cover:

  • The tenants’ belongings.
  • Your rental property if it’s vacant for more than 30 days. Seek an exemption in advance from your landlord insurance company as soon as you know the property is going to be vacant.
  • War and nuclear, biological, chemical, or radiological attacks.

Optional coverage you might want to buy:

  • Flood
  • Earthquake
  • Vandalism (if the policy you buy excludes it)
  • Pool and tennis court insurance
  • Liability for personal injury, wrongful eviction, wrongful entry, libel, and slander

Don’t forget liability coverage

To cover yourself in case you lose a big court case filed by an injured tenant, buy anumbrella insurance policy that gives you liability protection for $1 million to $5 million or more if you have a lot of assets to protect.

Don’t file a claim unless you absolutely have to

There’s a limit to how many claims you can file before insurance companies start charging you more or canceling your policies. Claims can quickly add up as you buy more rental properties.

One time you always want to file a claim is when someone says they’ve been injured on your property. One claim you’ll want to avoid filing: water damage for less than $10,000 because worries about mold growing in water-damaged properties will lead some insurers to immediately cancel your insurance policy.

More from HouseLogic

How to Correct Your Clue Insurance Report

Improve Your Insurance Score

Other web resources

Renters Insurance Brochure to Share with Your Tenants

Dona DeZube, HouseLogic’s News Editor, has been writing about real estate for over two decades. She lives in a suburban Baltimore 1970s rancher on a 3-acre lot shared with possums, raccoons, foxes, a herd of deer, and her blue-tick hound.

 

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

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Small rental property owners breathe a sigh of relief

There is always a lot of new legislation passed every year that sounds like a good idea at the time and generally goes unnoticed, and every once in a while the consequences of that legislation become horrifyingly apparent afterwards.

This past year, the legislation that was causing so much heartburn for small property owners was a new IRS requirement that anyone with rental property file a 1099 for any repairs that add up to $600+ over the course of the year. (see my post about it here, from December 2010)

Good news — the provision was repealed before it could take effect!! (here is the actual legislation that was passed to repeal the IRS provision, in case you would like to read it)

Hats off to the Realtor community for standing against this for the good of the mom-and-pop investors, who are the ones would be most affected by those proposed requirements — and for Realtor Magazine’s blog for bringing the repeal to my attention. From their description of how everything unfolded, it seems as though everyone understood that this was good to do:

When the provision was included in the small business bill, REALTORS® were among the first and firmest opponents of it, helping to ensure that Congress understood the provision was an example of over-reach that was never intended to burden mom and pop property owners. Members of Congress and President Obama got the message and, in a rare example of agreement between not only Republicans, Democrats, and independents, but also between House and Senate chambers and between the legislative and executive branches, lawmakers agreed the provision needed to come out.

Nice to know that we don’t have this provision coming up to haunt us over the next few years, isn’t it?

 

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Pet deposits on residential leases

The issue of a residential tenant deciding to get a pet in the middle of a current lease term doesn’t come up nearly as much as you would expect, but every so often it does. In most cases we do require a pet deposit to cover any damages that the pet may do to the property.

Legal technicalities aside, the landlord has a good practical argument for retaining the whole deposit [until the end of the lease]. The increased deposit was intended to provide coverage for any damage the dog might do. The landlord may not know about any such damage until you move out, even though the dog is long gone.

The above quote is from a post on Inman News in a Q&A column that I thought was worth sharing here (click the link to see the rest of the article).

Not only is the post a good primer on the ins-and-outs of security deposits, but also on the general nature of leases and how changes to an existing lease should be handled. This is important information to understand for both landlords and tenants. Basically, lease terms can’t just be changed at the whim of one party (duh!) — while that seems like it should be taken for granted, you would be surprised how often we have to explain that in the normal  course of business.

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Exciting times for a local revitalization organization

The Alliance to Conserve Old Richmond Neighborhoods (A.C.O.R.N.) has worked diligently for more than a decade to “promote the purchase and renovation of vacant and abandoned buildings in Richmond’s oldest neighborhoods.” This past Friday, ACORN announced some big news that will help them in that mission, and that’s exciting for all of Richmond. I’ll let their press release speak for itself:

The Alliance
to Conserve
Old Richmond Neighborhoods

Press Release
January 21, 2011
The Alliance to Conserve Old Richmond Neighborhood Joins Better Housing Coalition

The Alliance is pleased and excited to announce a new step in its evolution and a greater opportunity to improve lives in Richmond. As of January 31, 2011 The Alliance will be moving to become part of the Better Housing Coalition (BHC) family as its Center for Neighborhood Revitalization. The Center will expand BHC services for the Richmond community and continue to provide educational programs and urban revitalization tools for communities and residents.

The Alliance brings to BHC both experience and programs that benefit prospective homeowners in their desire to renovate and preserve older and historic properties; and this opportunity allows The Alliance to increase its capacity of programs and services, thereby continuing its mission of conserving and rebuilding Richmond’s neighborhoods.

The Alliance executive director, David Herring, will become the vice president of BHC’s Center for Neighborhood Revitalization.

The Alliance property director, Lane Pearson, will support BHC’s Center programs as revitalization strategy manager.

“Moving Richmond’s affordable housing climate forward often requires preserving its past,” said T.K. Somanath, president of BHC. “With the skills and knowledge The Alliance staff brings to the table, we can bolster our work to revitalize Richmond’s urban core featuring well designed, walkable developments that mix residential and commercial uses, integrating the places we live, work and shop.”

John McCann, chairman of BHC’s Board of Directors, said, “We also look forward to tapping the talents of Board members from The Alliance, who have provided unwavering support for The Alliance’s mission and outreach.”

The two organizations are delighted to be integrating programs of The Alliance into Better Housing Coalition in order to continue to strengthen Richmond communities now and for the future.
ALLIANCE TO CONSERVE OLD RICHMOND NEIGHBORHOODS
104 SHOCKOE SLIP, LOWER LEVEL ~  RICHMOND, VA 23219 

DAVID HERRING

DIRECTOR

LANE PEARSON
PROPERTY DIRECTOR

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Sexual orientation discrimination in housing? We won’t stand for it.

Residential Realtor logoWe have come a long way in the fight for civil rights in this country, and we have a lot to be proud of.  Unfortunately, in many states it is still absolutely legal to discriminate against someone for their sexual orientation when it comes to housing.  This needs to be addressed legally, but the Realtors aren’t going to allow any of our members to get away with such practices anymore.

Read through this article at Agent Genius to see what’s changed:  “Is sexual orientation discrimination in housing legal? Maybe.”  It’s great news!

According to the NAR, the Code of Ethics Article 10 has been amended:
Article 10: Equal Rights Amendment Passes:
The NAR Delegate Body approved an amendment to Article 10 of the Code of Ethics to prohibit discrimination on the basis of sexual orientation. In a roll-call vote, more than 93 percent of the Delegate Body voted in favor of the amendment. The Delegate Body decision confirms a vote by the Board of Directors in May.

As a personal note, AG strongly supports and applauds the measure taken that Realtors’ ethics supersede federal law so that no matter if it is legal or not locally, discrimination based on sexual orientation will not be tolerated from Realtors, a measure taken by Realtors.

Huzzah for the Realtor community for standing up for what’s right and making an amendment to the Code of Ethics to declare sexual orientation discrimination officially unacceptable!

Today is a day when I’m even more proud than usual to call myself a Realtor.

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New chapter for a Church Hill institution

St Johns Realty AND Bandazian & HoldenSt. John’s Realty has been in the property management business almost as long as we have here at Bandazian & Holden.  While I haven’t seen a record of what year they started, I’ve been told that they have been doing residential property management for somewhere between 20-30 years. (FYI – B&H was founded in 1974.)

With the passing last year of the founder and principal broker owner, Danny Athans [edited 3/23/10, per information from Church Hill People’s News — link to announcement here], the future of St. John’s Realty was unsure.  I am proud to announce that we at Bandazian & Holden have stepped up to take over the accounts, and all of the years of hard work by St. John’s Realty will not go to waste.

There are a lot of other details that will be forthcoming, but there is a lot of work that we are doing right now to get in touch with the property owners and tenants to alert them to the change, and to get all of the files in order.

We are very excited for the opportunity to serve this new group of property owners and tenants, and to expand our presence in Church Hill!

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Bailing out irresponsible investors?

I've been on the fence for a while about whether the proposed mortgage "bailout" is the right thing to do. 

I believe very much in the free market economy and that what we do with our money is each individual's responsibility.  The thought of using taxpayers' money to subsidize bad investments is horrifying to me, and only encourages unscrupulous behavior.

There is a large contingent of the general public that believes the same as my initial reaction, and some of them have gone public on a site called Angry Renter.  There is a petition that you can sign that will be presented to Congress in opposition to what they are describing as, "
Congress is getting ready to pass a multi-billion dollar bailout of homeowners and their banks. That's right, Congress is going to use your tax dollars to bail out big banks and keep housing prices too high!"

A post on the Inman Blog echoed my doubts pretty much exactly:

No doubt, on the surface it does appear as if irresponsible investing
will be subsidized by taxpayers. But what angry renters may not realize
is that they will pay for these mistakes whether there is a government
bailout or not — in the form of depreciating home values, loss of city
revenues, and a dragging economy.

While I'm still on the fence, a little too able to see both sides, I'm curious to hear what you all think of the situation.  Is this a tax on the responsible, to bail out the irresponsible?  Or is it a necessary part of stabilizing our economy?

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Read this warning before buying new home construction!

I’m not a residential real estate agent (although I can refer you to several good ones, if you need), so I don’t usually address home purchasing issues on this blog.  I do, however, follow many good blogs that focus on residential real estate and every once in a while come across a gem that begs to be shared.  Going forward, I’ll be sure to share those postings here when the topic is applicable to the Richmond market.

Here is the first of these postings:  "Buying new construction without a Realtor? Read this first!" by Jim Duncan on REALCentralVA.com.

Jim makes a good point that:

One size certainly does not fit all. Certainly, not all new
construction contracts are this odious and one-sided, but buyers (and
Realtors) need to be aware that this type of contract is out there, is
being used and is being signed by Buyers without even a hint of Buyer
Representation.

Be sure to read Jim’s post.  It’s scary that this kind of language is in a contract.  Another lesson to take from this is always read before you sign anything and make sure you understand the language that is being used.

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Latest Plans for the Boulevard

A short but very interesting article in this morning’s RTD discusses the redevelopment plans for the area around the Diamond on Boulevard.  The focus of the article was more on the deadline yesterday for developers to submit their bids on the project, but I found the details of the City’s plans for the area to be more interesting than the names of the developers

(Although, it is interesting that Douglas Development Corp. has bid on the project.  That’s the firm owned by Douglas Jemal.  They are firmly entrenched in DC and Maryland, and have been buying up properties downtown over the past couple of years.)

Per the advertised qualifications for the bids, the City has outlined their vision of the redevelopment:

  • a new 8,000-seat baseball stadium closer to I-95 — When I first read that,  I couldn’t imagine it being very much closer than the Diamond is now, but it could be moved back towards the I-95 South entrance ramp.
  • redevelopment of the Virginia Alcoholic Beverage Control headquarters, perhaps to include the relocation of the Richmond Coliseum to this site
  • demolish the Diamond, using the 27-acre site for a mixed-use development
  • demolish the city maintenance complex, resulting in another 27-acre site for redevelopment
  • build a parking deck beside the Arthur Ashe Center

It will be interesting to see it all move forward, and to see the renderings that the chosen developer presents.  If anyone has further insight on the project, I would love to hear more!

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Comments on The Crupi Report

I just finished reading The Crupi Report, and there is quite a bit that I agree with…and some that I don’t.  Instead of taking this post to get into the individual points that I am for or against, I wanted to share my most immediate gut criticisms of the report:

  1. What was up with the misspellings?  I noticed a handful sprinkled throughout the report (and I wasn’t looking for them) — "lose" was mispelled a couple of times, i.e.
  2. What is the "medium of house prices"?  I assume Dr. Crupi meant "median", but I can’t be sure.  Maybe he meant average?  Who knows…
  3. There was a quote from "A black leader" that said "I drank from the back of the bus, but it doesn’t define my life."  I get the meaning and appreciate it.  But, am I missing some piece of historical reference here or is that a mixed reference — i.e., sitting at the back of the bus and having to drink at a different water fountain?  Given the other mistakes in the report, I don’t know whether that is a misquote or the actual words he/she used.  Either way, it’s  wouldn’t have used it in the report as-is.

My point is not to be nit-picky, but come on, these are pretty simple mistakes to catch and correct.  Why undermine your credibility by letting them slip through?  I certainly don’t think that my writing is perfect, but I’m not getting paid to produce reports that are going to be read by an entire region.

Getting past the simple mistakes, I enjoyed the overall theme of urging cooperation and overarching vision as necessary for the strategic growth of the entire region.

One of my favorite quotes from the report was:  "It is ironic that while people in the counties recognize that the city can influence it with negative pollitical and economic images, they under-appreciate the benefits of what would happen if those same images were positive."

I am anticipating a great future for the Richmond-metro area, and I think that this report was a great way to generate interest and involvement by the general populace.

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New Downtown Master Plan released today

The new Downtown Master Plan was presented today.  See the following link for a quick RTD article about it: Richmond leaders see vision of downtown – News – inRich.com.

Here are links to the different parts of the plan:

It looks like a night of reading reports, between this new release and catching up on The Crupi Report.  I hope to have some insightful feedback for you within the next couple of days.

[edit, 5/17/10: I realize that the links for the Master Plan no longer work, but I don’t seem to be able to find where they’ve put it. If you find it, please add a link in the comments below! — NVH]

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New High Schools for West End

Two new high schools are slated for the ever-developing West End of Henrico.  One of the newest high schools in that area, Deep Run, is expected to have 1,853 students as of next fall — and that’s already 3 students above the intended capacity.

The first new high school is planned for 2010, on the site south of Springfield Road, off of Staples Mill Road.  The contract for that site was approved last month for $13.6M.

The second site is 205 acres on Kain Road, slightly northwest of Short Pump Town Center.  The proposed purchase price (including site reviews and other costs) is $26.7M, and the intended usage would be not only a new high school for 2016 (or earlier), but also a public park and a fire station.

See "Henrico targets Short Pump site for future school" in this morning’s RTD (or yesterday’s shorter, online version "Henrico considers large land purchase") for more details.  It’s a very interesting read, even just to keep informed on who the players are in Henrico’s development.

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UPDATE: “Chippenham Place” (Cloverleaf Mall)

Last week, the Chesterfield County Board of Supervisors approved Crosland’s initial plans for the redevelopment of Cloverleaf Mall.  The plans include at least 500 residential units and 200,000 SF of commercial space.

From an older report, the outparcels that have been consistently active will remain, and Kroger has signed on to build out their largest store yet in the Richmond-metro area.

This certainly sounds like it is moving along nicely, and it will help the area turn around after years of decline.

For a more thorough report of the announcement, read "Cloverleaf’s Newest ‘Place’" on Richmond.com.  Here is a clip from that article that I found gives us some insight on the timeframe we are looking at for the redevelopment:

“It’s not
unrealistic for a project of this size to be absorbed over a period of
four years perhaps even until build out,” [James Downs, vice president for Crosland’s retail division] said. “The commercial
component, however, we see moving forward immediately.”

(For previous posts about this topic, see Something’s Moving at Cloverleaf Mall on 12-28-06)

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Something’s Moving at Cloverleaf Mall

This bit of news slipped by me when it hit the RTD a couple of weeks ago, but thanks to the Chamber of Commerce pointing it out I’m all up to date! 

After a long period of silence about the status of Cloverleaf Mall, there is movement.  In January, Chesterfield County officials expect to have a signed purchase agreement from Crosland Inc., who will be redeveloping the site.  The buyers have been involved since May 2006, and have several versions of a proposal that calls for redeveloping the aged mall into a mixed-use development.

Several plans have been proposed since Chesterfield purchased the property in 2004, all of which include a "pedestrian-friendly community that blends residential and business components".  The county has said that it will be subsidizing the redevelopment, in order to make it work.

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How to buy a house on a golf course

Ahhh, the complexities of something that you thought might actually be easy.  But then, it’s all easy from the outside, right?

I don’t know if I’ve said this here before, but I am not a residential Realtor.  I am licensed such that I can act as one, but it’s really not my specialty.  For all parties involved (myself included), I would prefer to refer out the business to someone that specializes in it.  Commercial real estate and residential real estate are two very different beasties, and I like the commercial side — even if it includes the odd investment single-family home from time to time.  It’s just a different mode of thought.

I can do residential representation, and have done it a couple of choice times for choice clients.  I actually enjoyed the negotiation part the most, since it’s on a much faster pace than commercial transactions.  (not to slight the commercial transactions at all, but I enjoy having the tight time frame for a response as leverage for my client)

This all being said, I still enjoy keeping up on the constant education that is available online and in trade magazines.  That way I’m still sharp when the next choice client asks me to help them out on a residential issue.  And, I like to pass along the occassional tidbit to you when I come across a gem.

For example:  This article on GolfCourseRealty.com, "In the market for a golf-course home?  Here’s what to look for", is a keeper.  It is very well-thought out, and raises a lot of good points about this process that I wouldn’t have considered — until getting into an evaluation of a house in that situation.  Plus, who knows if these issues would have really been considered before a decision was reached?  Much better to go into the evaluation of a home with your eyes wide open, rather than trying to learn as you go along.

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News on Condos (not such a surprise)

Condos, condos, condos….  If you read this blog at all, then you know my viewpoint on the ongoing fad of converting everything to condos.  (and if you don’t, then just keep reading)

I don’t have a lot to say about it right now, but I wanted to point you to an article on MSNBC.com from a couple of weeks ago: "Scramble for affordable apartments" — and especially to this quote from the article about residential condo development:

In smaller markets such as Portland, Ore., Richmond, Va., and Omaha, Neb., demand has outpaced development.

I’ve been saying it for a while, but it’s nice to have something in the news backing me up on it.

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UPDATE: New Downtown Hilton Hotel

People have been asking me for an update to my post from 5/2/06 ("New Hilton Hotel redevelopment of Miller & Rhoads") which outlined the redevelopment of the old Miller & Rhoads department store downtown into a sparkling new Hilton hotel, along with lots of new condo units (just what we need) and new retail space.

Anyone driving by the site on Broad Street can see that not a whole lot of progress has been made.  One would think that the project has just been forgotten.

In fact, the construction has just been delayed a few months due to various factors:  the recent rise in construction costs, difficulties in financing, the softening in the housing market, and tax credit issues.  The developers expect to have everything in place and to begin construction in December.

And as a side note:  This hotel will be a full-service upscale Hilton, but developers are not revealing which sub-brand name they will be using.

(Source:  "Downtown Hilton Delayed to December" in 11/8/06 edition of Style Weekly)

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High-Rises Planned Along James River

A Northern Virginia developer wants to build two 18-story buildings at the bend of the James River [beside Libby Hill Park].

Falls Church-based USP Rocketts LLC is planning the development, which
would have up to 260 condominium units as well as a health club and a
restaurant, on the vacant lots next to Great Shiplock Park on Dock Street in the East End, according to its request that the city rezone the property.

— from N.Va. firm plans towers locally reported by the RTD

A request for permission to exceed the height-cap will need to be approved by the city, and nearby residents are not thrilled by the idea.  Regardless of the developer’s intentions to pour money into the surrounding area (including Libby Park and Great Shiplock Park), the overriding concern is the blocking of "the river view that inspired William Byrd to name the city he founded after Richmond-upon-Thames, just outside London."

The proposed site is the 3000 block of Dock Street, the former site of the Tarmac Concrete plant.
 

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It’s a Landlord’s Market

As I’ve pointed out over the past several months, the residential leasing market has become slanted towards the landlords. 

This is a result of several factors, of course, including:
-the insane rate of condo conversions (see also: More about Condos vs. Apts, Condos reverting to apartments, Stronger Market for Apartment Investors, & New Hilton Hotel redevelopment of Miller & Rhoads)
-the slowing of the economy (however slight it may be)
-the increased mortgage rates (see also:  Residential rates highest since 2002)

The Wall Street Journal just ran an article about the shift in the residential leasing market.  Here is the synopsis posted by REALTOR Magazine Online:

Bidding War May Be Moving to Rental Front
The country’s apartment sector is seeing
more bidding wars as tenants jockey for available rental units in
increasingly tight markets.

Nationwide, rent for a 1,000-square-foot
apartment has risen 3.7 percent in the last year to $1,389 a month,
says Property & Portfolio Research Inc.

One of the main reasons for climbing rents
is the reduced inventory of units, created in part by developers that
built condos or converted rental stock into for-sale units during the
home sale boom.

In the second quarter of this year, rental
vacancy rates fell to 5.3 percent from 6.2 percent in the year-earlier
period. This has produced what is known as a "landlord’s market," with
companies like AvalonBay Communities Inc. raising their asking prices
and cutting concessions for incentives like a free month’s rent.

—Wall Street Journal, Christine Haughney (10/11/06)

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Highland Park tour

Rhclogo4c1

Compliments of the Valentine Richmond History Center (I added the links):

"Take a trolley ride and discover one of Richmond’s first trolley communities, Highland Park.  Join the original trolley route from the History Center to Highland Park.  Attendees will tour one of Highland Park’s newly restored homes and enjoy refreshments catered by Boaz and Ruth.  The Trolley leaves from the Valentine Richmond History Center and will run continuously between Highland Park and the History Center; event is free to the public.

SUNDAY, SEPTEMBER 24, 2006, 1-4 PM
1015 E. Clay St., Richmond, VA, 23219
(Limited Parking Available at the History Center)"

I encourage everyone to take advantage of this unique event.  Not only will you get to ride the trolley through an historic neighborhood, but the History Center will also be open to the public (free admission that same day, I think — but don’t hold me to that).

While you are there, check out the new exhibit "Why Richmond? Richmond Immigrants Tell Their Stores".

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“Party houses” in the Fan

The Fan District Association has implemented a patrol that will be out on Friday and Saturday nights watching and listening for "out-of-control" parties.  The offending addresses will be reported to the police and then recorded on their website for public access.

>>>

Report Those Party Houses to the Police!

         

            

Councilman
Bill Pantele working with the Richmond Police Department’s Sector 313
is introducing a new program to identify and report properties which
cause disturbance in the neighborhood. The program know as Party House
ID is being introduced to the FDA membership to allow our members to
make sure that party houses are included in the list of address
maintained by the Richmond City Police Department. We also encourage
residents to call the police each and every time that your peace and
quietude is interrupted.

            


                  The Fall Party Patrol kicks off this weekend — we have obtained a special cellular telephone number courtesy of
                    Verizon Telephone’s wireless divisions.
              Party Patrol (804) 317-2840
                Download the Party Patrol Flier to share with your neighbors
                  Click Here to Fill out the Form.
                  See a Map of the Party House Locations
              Information about the City of Richmond Noise Ordinance Section 38-1 & 2 and
                Virginia State Code Sections 5.1-317 Maintaining common nuisances; penalties.
                for filing complaints through the
                magistrates office
              The Party Patrol is currently running on Friday and Saturday nights from 9:00 pm to 3:00 AM

         

>>>

Good for them getting together to patrol and reporting the nuisances to the police!

I do, however, have an issue with the policy of publishing these "nuisance" addresses on a public access website. 
*Once a property is listed, is there a procedure for getting a property removed from the list once there is no more problem? 
*How will this list stigmatize an area?  (i.e., if I am a property owner a half a block removed, how will this public info affect my property value?)

I see this "solution" as a problem in itself.  We shall see.

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2006 Golden Hammer Awards

If you haven’t seen the Richmond Times-Dispatch this morning, pick it up.  There are quite a few good articles related to business and real estate today.

One in particular that I want you to note is the profile on Ed Eck.  This man and his company  have done (and continue to do) a great service for Richmond in redeveloping the area just west of VCU, specifically along the West Main St and West Cary Street corridors.  (If you are struggling to identify where I mean, think of the pastel colored buildings along West Main Street, Mulligan’s, the old El Rio Grande, Gold’s Gym, etc.)

Congratulations to Ed for winning the Andrew Asch Developer Award, from the pool of 2006 Golden Hammer Awards, from A.C.O.R.N. (Alliance to Conserve Old Richmond Neighborhoods) for "contributions to historical conservation".

Congratulations to all of this year’s winners and nominees!

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Greg Swann vs. Zillow.com

Kudos to a weblog that I have just recently come across (thanks to Carnival of Real Estate) on debunking the all-hailed Zillow.com.  I have heard a lot of buzz about Zillow, but have never personally checked it out (being a commercial realtor and not nearly as involved in the residential market).

Greg Swann at BloodhoundBlog has done a fantastic analysis of how Zillow.com works…or more properly, how Zillow.com does NOT work.  Take a look at the link below to see the thorough discussion of their pricing methodology vs. how Realtors do price comps.

Link: Debunking Zillow.com….

The point is that, whatever it is that Zillow.com might be doing, what it is not doing — what it cannot be doing — is evaluating houses. This simply cannot be done by the methodology Zillow.com has employed.

I will definitley be keeping tabs on his future entries.  I suggest you do the same.

(EDIT 12/1/06: corrected misspelling in link to BloodhoudBlog)

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Residential rates highest since 2002

We all know that interest rates are rising, between the Fed raising their rates and the overall market slowing down.  Every indication is that the housing market is not busting, but it is definitely slowing down.

See below for the USA Today article from yesterday.  The general concepts are certainly not news to anyone, but their comparisons to previous highs and lows are interesting.

Link: USATODAY.com – Rates on 30-year mortgages are highest since 2002.

Freddie Mac, the mortgage company, says rates on 30-year, fixed-rate mortgages increased to a nationwide average of 6.80%, from 6.74% last week.

That’s the highest they’ve been since they stood at 6.81% the week of May 24, 2002.

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Condos reverting to apartments

As USA Today reported, the recent cooling of the real estate market nationwide is causing the the buyers of condos to dry up.  Coupling that with the trend of converting multi-family housing to condos (which I see is still a hot trend in the Richmond market), there is a glut of condos available.

This is having two directly observable results:

  1. Rents are rising as the supply of rental units shrinks due to conversions to condos, and the demand for rentals increases as mortgage rates rise.
  2. Some developers are noticing the first result, and converting their condo buildings back to rental units.

(see also Stronger Market for Apartment Investors  & New Hiton Hotel redevelopment of Miller & Rhoads )

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College Areas Good for Investing

While students are the not always the best tenants, there are lots of good reasons to buy investment properties in college areas.


College enrollments expected to rise by almost 1.6 million students, or
15 percent, over the next 10 years, according to the U.S. Department of
Education, and the number of graduate and professional students is
growing even faster, at almost 25 percent.

With the increase in students, there will of course be a rise in professors, administrative staff, space needed by the colleges, and supporting industries (research, retail, restaurants, etc.).  While the article at REALTOR� Magazine Online -Daily News- College Town Properties Are a Smart Buy focussed on small college-dominated towns, this is a very good sign for Richmond.  With Randolph Macon, VCU, UR, VUU, and the community colleges here, the areas around each of these schools will feel the impact.

Now is the time to jump in and start investing for the future growth, especially since the market has slowed down just a bit.

[Source: Dow Jones Business News, Jennifer Openshaw (07/04/2006), cited in the article mentioned above]

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New Hilton Hotel redevelopment of Miller & Rhoads

After 5 years of trying to get a good plan in place, the redevelopment of the Miller & Rhoads department store in downtown Richmond looks like it is finally within reach.  The artist’s rendition of the redevelopment was unveiled last Wednesday, with the help of Mayor Wilder and several other City representatives.

Once completed, the
project will include a 250-room Hilton Hotel with full amenities as
well as 150-unit condominium complex. The hotel will also bring 20,000
additional square feet of retail space to the area. The condominium
units are expected to start in the low $200,000s.

See the full article at Richmond.com.

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Stronger Market for Apartment Investors

As reported in the NREI, investors interested in multi-family housing have a strong market building.  The study cited focussed on the housing market slowdown in Southeastern cities, and how several factors are contributing to the favorable market for apartment owners.

The increase in mortgage rates is one factor that is slowing the residential purchase boom, and is consequently encouraging families to rent.

Another trend that I’ve seen in full force in the Richmond market is the effect of the numerous condo-conversions taking place simultaneously.

Another trend line that apartment investors should watch closely is
conversion activity, which has added strength to the rental market by
eliminating inventory. If the first quarter was any indication, the
conversion slowdown that began last October has carried into 2006: Reis
Inc. reports that roughly 30,000 apartment properties were converted
into condos during the fourth quarter of 2005, down from 50,000 in the
third quarter.

In effect, the slowdown of residential sales can be turned to the advantage of the wise investor.  Be on the lookout for good deals on rental units!