What’s Going On?…Downtown Fort Collins

What’s Going On is a monthly overview of the commercial development planned or in progress in Fort Collins.

This month we are focusing on the rapidly changing Downtown Fort Collins area. It’s worthwhile to note that retail leasing has recently showed an extremely low 3% vacancy rate. As we’ve seen in the residential rental market in recent years, the commercial market also has very limited retail lease space available. Older and less desirable centers that have been difficult to lease in the past have recently shown increased activity. Demand for in-line shop space, defined as space in a strip mall, or space that is side by side fronting a parking lot or street is extremely high! On the other hand, “Big Box” activity is stagnant due to increased consumer shopping online. Desirable locations with high street visibility are in demand, especially for companies looking from outside of the area.

Commercial rental rates remain high due to the high costs of construction. For example, spaces at the Foothill Mall are leasing for $7,000-$8,000 per month. Rather than secure new locations, some retailers are opting to renew their current leases at their current location, or close their business when the current lease ends.

Downtown Fort Collins Development

Elizabeth Hotel and Parking Garage at 354 Walnut will open in the fall of 2017. It is being developed by Sage, McWhinney, and Bohemian Companies. The project includes an Emporium Kitchen and Wine Market plus coffee and ice cream shops.
Ginger and Baker at 359 Linden will offer coffee, pie, and grab-and-go food service from a side window. Opening is projected for third quarter, 2017.
Union Restaurant, a massive 6,000 square foot eatery at the corner of Jefferson and Linden Streets, broke ground in May, 2017. Located adjacent to the Rodizio Grill, Union is expected to open in late January, 2018.
The Exchange is a Brinkman project located in the 200 block of North College. It will feature a common consumption area, where liquor can be legally carried between businesses. Shipping container structures will house Churn Ice Cream and other restaurants and retail shops.
221 E. Mountain, the former Mountain View Tire location, is being developed into a 4-story office building with 67,000 square feet.
Uncommon at 310 S. College, formerly Perkins Restaurant, is a 6-story building offering 120 apartments and retail. Studio apartments are renting for $1,300/month. 3 bedroom apartment s are renting for $2,457.
The Safeway location at the corner of College and Mulberry is being considered for a 2-story addition above the liquor store. An additional 6-story building may include a replacement grocer.
The former Sports Authority site at 425 S. College is targeted for a Lucky’s Market.
JD Padilla is developing a mixed use project that includes 180 apartments and 60,000 square feet of commercial space between Cherry and Maple on North College.
34 apartments at 830 S. College across from CSU are planned for the Schrader’s location.
Confluence is a mixed-use project at Linden and Willow Streets with 47 apartments, plus retail and office space. The project will span the entire block with 5 stories.
Cottages of Fort Collins features 195 apartments at Lincoln and Lemay. The project is slated to house 900 students. Two and three story townhomes will range from 1,700 to 1,800 square feet with 4 to 5 bedrooms.

Research provided to RE/MAX Advanced by Michelle Hickey Crawford

Find out what other developments are underway in Fort Collins here!

Millennials Want Homes, but Lack the Down Payment

Most millennials dream of becoming homeowners one day. But a recent report shows that a majority of them haven’t saved anywhere near the amount necessary for a down payment, putting their homeownership dreams far into the future–and possibly out of reach.

About 80% of the younger generation hope to buy a home, according to the study from rental website Apartment List. But 36% of these wannabe homeowners plan to wait more than five years to take the plunge into homeownership.

That’s because home prices keep rising and most millennials simply don’t have the money for an onerous down payment. More than two-thirds of respondents don’t even have $1,000 in down payment savings.

The Survey

Apartment List surveyed 24,000 millennial renters, born between 1982 and 2004, for the report. It was conducted from October 2016 through April 2017.

The percentage of millennials planning to wait at least a half-decade spiked this year. In 2016, only 27% said they planned to wait more than five years. In 2015, the figure was 23%.

And in the latest survey, 67% believe it will take them at least three years to become homeowners while only 16% believe they’ll close on a home within two years.

“Millennials’ plans to purchase a home are being pushed further and further into the future,” says Apartment List data analyst Chris Salviati, one of the authors of the report. “That could have serious impacts on their long-term financial stability.”

Decades to Save Up for a Down Payment

In the priciest parts of the country, it might take aspiring homeowners two decades–or more– to come up with a 20% down payment.

Take San Jose, CA. Young buyers are expected to need at least 24 years to come up with 20% for a condo in the metro area. Twenty-four years!

The grim reality of sizable down payments isn’t much better in the metros of Austin, TX, and Los Angeles, where millennials will need nearly 21 years to save. The calculations include home price, income, and savings growth projections.

“A lot of college-educated millennials are still carrying a lot of student debt,” Salviati says. “To move to some of the best-paying jobs, millennials have to live in some of the most expensive cities. And throughout the country, increases in home prices are outpacing wage growth.”

When the hurdle of an initial down payment was reduced to 10%, just 1 in 3 millennials said they could come up with the needed down payment in five years or less.

However, it’s worth noting that many younger and first-time buyers put down considerably less than 20% or even 10%. Certain Federal Housing Administration–insured loans require only a 3.5% down payment.

Why are Millennials Waiting to Buy?

About 72% of aspiring millennial buyers said they’re waiting because they can’t afford to buy. 45% said they weren’t ready to settle down yet. And 36% said they’re waiting to be married first.

Coming up with the down payment was the biggest obstacle, at 53% followed by monthly payments (at 36%) and low credit scores (at 29%).

“They’ll continue renting longer into adulthood than we’ve seen in previous generations,” Salvaiti says. They might buy smaller homes or “migrate to areas where prices are more affordable.”

Source: Clare Trapasso | www.realtor.com

Read More…

5 Surprising (and Useful!) Ways to Save for a Down Payment | houselogic.com

How to Best Save for a Down Payment on a House | moneyunder30.com

What’s Going On?…Mid-town Fort Collins

What’s Going On? is a monthly serialization of the commercial development planned in or in progress in and around Fort Collins. We start with a brief market overview and then the activity in a given area.

Between 2,000-6,000 apartments are in various stages of planning across Fort Collins. As many as 2,500 are planned for Mid-Town locations. Current median rents in Fort Collins are $900 for a one-bedroom apartment and $1300 for a two-bedroom. Rent in a proposed high-end project at the mall with studio and two-bedroom floor plans are within range.

Apartment vacancy in Fort Collins was 1.8% in 2015 and 2.7% in late 2016. The Colorado vacancy rate was recently at 5.2%. A vacancy rate of 5% is considered a balanced market. A vacancy rate less than 5% indicates that demand is greater than supply.

Mid-Town Fort Collins includes the Foothills Mall, which as of 2016, is reported to have 304,530 square feet leased (63% of the total square footage). Leases for another 40,000 square feet are nearing execution.

Activity in Mid-Town Fort Collins

Cycle Apartments are 405 high-end studio and two-bedroom apartments by McWhinney Development located on the east and north sides of the mall. Eighteen buildings with three to four stories will offer amenities including social fitness, clubhouse and pool, demonstration kitchen, social lounge, golf simulator, and bike and ski repair shops. Square footage for the apartments is 590-1119. Rents are $1,200 for the studio and $1,600 for the two-bedroom floor plan. Completion is mid-2017 with Baby Boomers and urban professionals as the target market.
225 Johnson Drive will include 195 apartments located north of Whole Foods behind Dog Pawlor, and south of Spring Creek Trail. The existing self-storage units and three duplexes will be razed. The five-story building will offer 4,000 square feet of office and retail space.
The gas station on College south of Spring Creek Trail, and across the street to the west of Chase Bank, will be redeveloped to an Elevations Credit Union.
Spring Creek Apartments will be located next to Whole Foods and include 168 units for occupants 55+ years young. Completion is anticipated in 2018.
Attorney Erik Fischer has plans to demolish five houses located at 1215 S. Shields and possibly build 97 apartments with one to two bedrooms and 11 single family homes.
Landmark Apartments plans to expand to the east of the current buildings with five additional two or three story buildings. In total, 68 apartments are expected.
At the northwest corner of Prospect and I-25, the Gateway at Prospect is a proposal for 650 single-family homes, apartments, and townhomes. The developer would have to widen Prospect to accomplish this project.
1,200 new apartments located by the new CSU stadium would include The Standard and The Slab. Beebe Christian School would be replaced with a five-story apartment complex.
100 apartments are proposed at 3425 S. Shields to replace a single family home.
The Overlook, located south of Horsetooth and JFK Parkway, would include 105 apartments.
A proposal for 170 apartments at 2800 S. Taft Hill Road for the 55+ years young market was submitted to the City of Fort Collins in April 2016, but there has been no further progress since that time.

Remodeling? 4 Ways to Stay Zen While Living in a Disaster Zone

Remodeling

Congrats! You finally got that fixer-upper you’ve been eyeing. Now it’s yours, but your budget’s tight, so you’re planning to move in and live there as you are in the process of remodeling.

Wow, that’s a stressful thought.

Just thinking about it makes you feel exhausted and excited at the same time. Sigh.

Well, you can let your excitement win that battle with these four strategies to ease the stress of living in the middle of a construction zone:

#1 Designate a Place for Stuff You Need

Homeowners ride an emotional roller coaster during a remodeling project, says Dave Lupberger, veteran remodeler who wrote the book, “Managing the Emotional Homeowner.”

To give your emotions some grounding, come up with an organization plan. it’s a lot easier (less stressful) to renovate when you’ve got the room.

Think about it:

Where are you going to put your pots and pans until your kitchen cabinets are ready?

Set up a storage place that’s reserved for stuff that needs relocating as you move from project to project. Such as:

Install an organization system in the basement or garage.
Reserve one room (future guest room?) if you can.
Rent a pod; you can even keep it at your home.

For items you’ll need to use more frequently throughout remodeling, build shelves in closets or create storage space under a window seat or banquette bench.

#2 Make the Space You’ll Live In a True Retreat

Maybe your master bedroom or kitchen will need a total remodel in a few years, but other rooms of the house need more attention now.

Because you spend the most time in your bedroom and kitchen, take this opportunity to make at least one of them really cozy with a quick makeover before diving into any heavy-duty projects elsewhere.

The fastest way to change a room is with paint and accessories. Use paint to create an accent wall in your bedroom and try your hand at crown molding to make a room seem polished. You can even add new lighting for ambiance.

In the kitchen, paint the cabinets, add new hardware, and – violà! – you have a new kitchen. Install a backsplash over a weekend, and one of your most commonly used rooms will feel peacefully polished – even if there’s chaos right down the hall.

#3 Make a Door One of Your First Projects

Your new home might be a mess inside, but you can feel great about pulling into your driveway.

A new front door, or newly-painted one will remind you how much of an impact your work is making on your home. And give you a reason to smile as you walk through the door.

#4 Create Outdoor Places to Escape to

Have a spring move in?

If you have months of good weather ahead, take advantage of your new yard to create a retreat where you can truly get away from the clamor of the remodeling project. Some simple ideas:

On your patio or deck, go ahead and “furnish” it – even if it’s just a few lawn chairs.
Create a picnic spot on a nice shaded spot.
Hang a swing.
Turn a shed into a temporary hideout.

Source: Stacey Freed | houselogic.com

How Do I Buy a New Construction Home?

As the northern Colorado housing market continues to offer limited opportunities, some buyers are turning to new construction.

Where do you start?

Before visiting model homes, your first step is to meet with a lender to determine the purchase price and loan amount for which you qualify. While many builders offer allowances for closing costs or design upgrades in exchange for working with their preferred lenders, the choice of lenders is yours.

Time to shop!

It’s fun to visit model homes! Focus on new home neighborhoods that fit your approved price range and preferred location. When you visit a model home, you will be talking with a sales associate that represents the builder. Some builders require that you be accompanied by your agent to assist you in the purchase process .

Model homes are built to WOW! Upgrades add to the cost of the home so you’ll want to know what materials and fixtures are standard.

Neighborhood details vary. How large are the lots and is fencing allowed? Is there a Homeowner’s Association? What are the amenities such as walking trails or parks? What are the neighborhood schools? Are future developments planned for the surrounding area?

Who is your builder?

Learn about the builder’s qualifications. Talk to current homeowners about their experience and search online for reviews and news articles.

Write a contract!

The builder’s sales rep will complete the contract with you, which is different from the contract used for the sale of an existing home. If applicable, you will also discuss the time frame for listing and selling your present home.

Construction begins!

Your new home may take a few months to complete, if it’s already under construction, or 6-8 months for a home that is not yet started. You will have opportunities to visit your new home while it’s built.

The finish line!

The last few weeks before closing are a busy time! Your lender will update and finalize your loan approval and determine the amount of cash you need for closing. An independent inspection of your home might be done. Before closing, you will walk through the home with the builder to review the operating systems, the home warranty, and check for any minor items that need attention.

Moving day!

Finally, closing documents are signed, and you have the keys to your new home! If your dream home is a custom build, that’s yet another process.

Source: Redfin, Dana Spanjer with Spanjer Homes