Foundation work began about a month ago on downtowns newest single-resident occupancy building at Seventh and H streets. Below I have captured the process of drilling steel-reinforced piles into the ground at a depth of 70 feet.
This $47.4 million project will house 150 units at a cost of $316,000 per unit. It was just the other day I saw the price tag per unit for the project at another news site and I was floored by this crazy number. Is this why so few units ever get built downtown without subsides? This price was expected during the last real estate boom of a few years ago, but this seems a little steep for a SRO. Were currently in a depressed real estate market but the cost to build in downtown does not reflect that. If it weren’t for both the state and city subsidies to give builders money to build downtown, not much would be built. What does that say about our market? This isn’t something new either; it’s been this way for over a decade and developers have adjusted their business pratices to reflect this. Now that our state and city are broke, will developers take a risk building downtown without government support?
|Rendering of finshed building|