Tenants of St. Charles Apartments Told to Get the Hell Out
By Silver Springer • Apr 2nd, 2007 • Category: Real Estate
Residents at St. Charles apartments have received 120 day notice to vacate the property. Located at the corner of Cameron and Spring Streets – the entire complex of St. Charles apartments is to be demolished for a high-rise residential project named Cameron House. The planned project is across the street from United Therapeutics Headquarters.
Currently managed by Southern Management, St. Charles apartments are marketed as affordable housing dwellings. The complex would be leveled for 325 units in a 143’foot 15 story high-rise with 41 MPDUs, 7330 sq/ft of ground floor retail and 434 parking spaces.
Bids for a general contractor have already taken place in January 2007. The $33 million dollar contract involves carpentry, electric, floors, HVAC, paint, plumbing, elevator, masonry and roofing.
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OMG…I almost rented an apartment there last November. One-bedrooms were going for $950 per month…dirt cheap for the location. Too good to be true when I visited the leasing office at the time.
To be honest, I am glad that more rental units are being built in DTSS. Yes, the rents will be outrageous in the beginning. But more units on the market could lead to price stablization down the road. I figure the Cameron House location will have starting rents at
$1,300 for studios
$1,500 for one-bedrooms and
$1,700 for two-bedrooms.
Throw in another $100 per month for parking at the facility.
And oh yeah…I bet the new development will NOT include the electric utility bill.
My rent at Summit Hills was jacked up 10 percent this year to $1313 per month for a one-bedroom. I would have paid $50 less month if I had signed a lease. Regardless, downtown Silver Spring is becoming a residential zone for the affluent. Middle-class families and young singles having a tougher time finding places to live. That’s a shame because Silver Spring should not be exclusive like Bethesda or Rockville. This will come back to bite the landlords in the ass some day.
Rental markets follow the local economy. When times go bad for Silver Spring (and they will some day)…the rents will have to depreciate and the landlord developers will have to take a big hit. Economic growth is not linear; it’s a cyclical pattern.
Here is the million dollar question. Just out of my curiosity – have you ever seen ANY apartment complex EVER drop their rents? The closest they come to do doing that is “free months rent†or “we will pay your utility bills†for a year B.S.
I would just really like to know if any one has witnessed directly dropped rents particularly in downtown Silver Spring?
I’m confused. You write that this complex is co-owned by the residents. So how can they be kicked out? And do the residents get a cut of this sale?
It seems FF Realty won a legal battle against the St. Charles Apartments. If I could find the info again I would post it.
There is a sound financial reason that apartment complexes don’t drop their rents and instead offer “one month free” type incentives.
If the monthly rent is lowered, then upon renewal, the new (increased) rent is based on the lower initial rental rate. If a one time move-in incentive like one (or two, or three) months free is offered, then upon renewal, the new rent is based on full market rent.
Market-rate apartment owners are in the business to make a profit, not in the subsidized public housing business. And as with any business in our capitalist economy, they will charge/increase prices to the point of market resistance. That is what all retail, restaurant and service business do…why would anyone be suprised when apartments do it?
That is the downside of renting vs. owning.
And 120 days is a generous notice given that everyone who lives (or recently leased) at the St. Charles had already known for a long time that the property had been sold and they would have to move. The same thing will happen at Falkland Chase…everyone already knows so the residents have plenty of time to find another place to live.
Woodsider: “And as with any business in our capitalist economy, they will charge/increase prices to the point of market resistance. That is what all retail, restaurant and service business do…why would anyone be suprised when apartments do it? That is the downside of renting vs. owning.”
Owning a house doesn’t protect you from the market place either. The county assessment office will jack up your property taxes based on the real estate sales in your neighborhood. Supply & demand economics is a bitch whether you are a renter or house owner.
Actually, there is some market resistance in Silver Spring with several condo projects. Condo units are not selling as well in major projects like The Silverton. btw…is the Ellsworth condo thing ever going to take off?
The bubble has popped in Silver Spring. Unfortunately, steep rent increases in the past couple of years is closing the cost gap between owning and renting property.
The only thing that has popped in Silver Spring is the idea in developers’ heads to build more OFFICE and RETAIL SPACE.
The point I was making is that with a traditional mortgage, which the vast majority of owners have (contrary to what one might believe, given all the press about the recent problems with non-traditional types), your monthly payment stays the same for 30 years, even though your income rises. Sure, taxes can increase but in MoCo and other jurisdictions, there is a cap on how much per year. Either way, it is a small percentage of the overall payment.
Can you say that for renting, where on average your rent would probably go up 5-10% year?
Woodsider, renting is a better choice for me personally. I can’t afford to put $20,000 or $30,000 down on property. I would never, ever get one of those ARM or interest-only mortgage loans.
Unfortunately, I bet many new buyers in Silver Spring are using these exotic mortgage notes to get a slice of the real estate market. Buying property in Silver Spring is an expensive proposition. The average housing sale price is over $400,000 in Silver Spring; this is almost a 100 percent increase since the year 2000. I don’t think incomes of most people have risen 100 percent in seven years, do you?
You will see many houses and condos going through foreclosure around Silver Spring. Federal government begins to reduce the budget spigot to homeland security, defense, and other contractors. Discovery Channel is handing out lots of pink slips at the SS headquarters this month. Silver Spring is in for a down year in terms of real estate and retail business.
That’s what was predicted for 2006 as well, yet the average sales price increased by about 3% from December 2005 to December 2006 with just about 10% fewer homes sold.
All the indicators show that while we won’t see price escalation anything like we had from 2000-2005, there certainly won’t be a collapse of the market or dramatic devaluation of property values. A 5-10% correction in pricing is nothing compared to the increase we had.
Unfortunately, if you aren’t able to come up with the 5% downpayment and you are (wisely) unwilling to get an ARM or interest free note, then you are probably priced out of the Silver Spring market. If you aren’t counting on a considerable increase in income, you probably shouldn’t sit around waiting for the market to crash to the point where you can afford it. Buy where you can afford.
By the way, I’m not sure if you know this or not, but the IRS now allows mortgage insurance premiums to be deducted from your taxable income. This makes taking out a 95% mortgage more affordable for those with limited means for downpayment.
I meant interest only note. Sorry for the deluge of postings.
Comment by Pennster
Made Monday, 2 of April , 2007 at 11:40 pm
The only thing that has popped in Silver Spring is the idea in developers’ heads to build more OFFICE and RETAIL SPACE.
RE: Yeah anything that would encourage Unemployment and Economic/Retail Blight in Silver Spring if not Montgomery County would make folx like you happy just so that it will not look as Upscale and attractive as Arlington, Alexandria, and Tyson’s Corner.
I’m also confused by that “co-owned by the residents of the complex” statement. Wouldn’t that actually make St. Charles a coop or condo? That has to be wrong.
IHateYuppies, I too looked into renting there, but ended up going with Summit Hills - I knew the St. Charles was too good to be true. Still, that is a great location - maybe by the time Cameron House is finished I could afford a rent increase for a place there.
May I ask what your rent at Summit Hills was increased from? Are you month-to-month now? My lease is up at the end of August and I’d like to stay (renting trumps buying for me as well), just not sure what I’m in for with the renewal.
My rent goes up from $1,193 per month to $1,313 a month starting June 1. If I had signed a one-year lease, my rent would have been $1,268 per month. Still, even with the lease price, that’s quite a big increase with the monthly rent.
Summit Hills is claiming that electric usage rates is driving the big rent increases. I don’t know if that is true or not.
I have to leave Summit Hills. There’s no way that I can afford $1,313 a month in rent when I have to pay student loan bills and I need to build savings for retirement and health care costs.
When I moved into Summit Hills in 2001, my rent was $863 for a one-bedroom apartment. In six years, the rent has increased 66 percent! My income has increased on average 5 percent per year or cumulative 30 percent. You do the math…the rental inflation is outpacing my annual income earnings by 36 percent. That’s really messed up.
I will have to settle for a shithole apartment in Takoma Park or Hyattsville apartment. Bye-bye Silver Spring. I should start a Blog called “White Guy Living in the PG County Ghetto”.
My favorite part of the Summit Hills rent increase letters was always section that went something like “The Montgomery County recommended rent increase is 3%. We really hope you have some lube handy, because we’re raising yours 9%.” I especially enjoyed they final one before we bought our place last year, when they offered to decrease our rent by a very minisucle amount if we signed on for an 18-month lease. Thankfully my wife and I got tired enough of the walls crumbling around us, indifferent staff, vermin, etc. and got out of there. Best decision we ever made.
Seriously, though, IHateYuppies, if you can scrape together 5% for a down payment I’d highly recommend it. We now live walking distance from the Forest Glen Metro station, and within two years our after-tax monthly housing cost will be less than what we’d be paying if we were still at Summit Hills.
The mice. I have heard so many complaints about rodent infestation at Summit Hills. So I am paying north of $1,300 per month to have furry rodents as roommates.
I am glad you got out of Summit Hills.
Yeah…Southern Management doesn’t come close to following the VOLUNTARY rent increase guidelines by Montgomery County.
Hasta la vista Hills.
Wow…White Guy Living In PG County Ghetto. Sounds pretty bigoted to me and that you hate more than yuppies!
But it is a ghetto…
BTW, unless there’s an earthquake or tsunami and housing prices drop like they did in Los Angeles after the last big earthquake; the increasing rents make a great argument in favor of scrounging money together to buy a 1br condo somewhere less ghettoey.
Yikes, IHateYuppies, those are scary numbers - 66% in six years, that’s insane! I’m splitting rent on a one-bedroom now but still couldn’t afford much of an increase, especially if I go back to school next year.
Curiously, and fortunately, I haven’t had any problems with rodent infestation (am in the building with the leasing office), but have heard rumors too. The indifferent staff, yeah - plenty of that to go around.
Damn, it might be time to move after all.
Ok, I removed the confusing quote “St. Charles is co-owned by the residents of the complex.” I couldn’t find the source so it’s gone.
IHateYuppies have you tried the Gramax? You may qualify for the lower rents and if not I think may still be cheaper than Summit Hills.
If it’s not too late you may want to apply for a rental MPDU (for sale is kind of a joke but may be good for you).
“My rent goes up from $1,193 per month to $1,313 a month starting June 1. If I had signed a one-year lease, my rent would have been $1,268 per month. Still, even with the lease price, that’s quite a big increase with the monthly rent.”
I live in Summit Hills, too, and have never had such a large jump. In the last go-round, I signed an 18 month lease and had only a minor increase.
Sorry, I hit submit a bit too soon.
My rent has never gone up over 5% per year and I’ve lived there since 1999. As for infestations, I found a single ant on the window ledge a few years back and once there was a mouse. I saw it running out from under the heater unit under my living room window. The building maintenance person put traps out and caught it in short order. I was worried about others and we put other traps (I augmented their sticky traps with an old fashioned spring trap), but I haven’t seen or caught a thing.
Just out of curiousity, what building are you in?
While we’re on the subject of SS apartment complexes, anyone know anything about Georgian Towers? The reviews on apt ratings are awful, but most seem to come from one troll. Any honest GT dwellers? I’m thinking of moving there…
Call me crazy but I would rather have a mice problem than a roach problem. Roaches are just all around gross to me but at least I can stand to look at the mice.
Call me crazy but I would rather have a mice problem than a roach problem. Roaches are just all around gross to me but at least I can stand to look at the mice.
Heh, the lesser of two evils. I have this intense, inexplicable phobia of vermin. Another good reason to avoid Adams Morgan on the weekends.
Chaz, I did a walk-through there. After Summit Hills, that was my second choice. The leasing agent was really friendly, didn’t do the hard sell, all that. I liked the floorplans, but the one bedroom was about 100 square feet less for $100 more than Summit Hills…plus there is a parking fee. I would be more inclined to believe the apartmentratings.com reviews that say it’s an overall good place to live with a few drawbacks.
Terry in Silver Spring,
You must have renewed your lease all those years. Summit Hills will cut rental breaks for people who renew leases. They offered me to sign a 12-month lease at a $75 increase per month. That was outrageous right there! Never mind that if I went month-to-month, that it would be an $120 increase. The bottom line is that the lease didn’t offer me a big discount. I would have settled for 3 or 4 percent increase if I had a signed a lease.
btw…my rental increases were very small after I ended my last lease in 2002. My rent increased only by $30 per month for 2003 and 2004. It wasn’t until like two years ago that Southern Management decided to “get tough” with non-leased residents. My rent increases were jacked up to almost $100 per month.
Screw ‘em. See ya Summit Hills.
In response to Silver Springer: Actually, my income might be low enough to qualify for housing in developments such as Spring Garden apartments. They have income-contingent requirements for rentals. I should look into this.
The postings on apartmentratings.com will always be disproportionately on the negative side because it is human nature that far more people will take the time to complain than to compliment. I agree with Chaz…usually a disgruntled resident (who didn’t want to abide by the rules agreed to in his lease)decides he’s going to get even by posting incessantly against a property. Most apartment complexes are decently run, but there are a few dogs for sure.
chaz,
I’ve lived in Georgian Towers for the nine months now and I’m leaning toward renewing my lease for another year (though I haven’t yet heard how much the rent will go up).
I pay $1350 per month, but got a two months free deal on a 14 month lease, so I pay average 1350*12/14 = $1157 per month.
The worst thing is that the walls are thin. Sometimes this can be annoying. My neighbors are loud, but tolerable. Also, I’m on the interior side of the building overlooking the courtyard, where sometimes after school kids are shouting (though technically kids aren’t supposed to be out there playing), which causes this very loud echo effect off the building walls. Otherwise I like my apartment. I think it’s relatively nice and a decent value for the area.
Paying $1,350 for a one-bedroom apt. in Silver Spring is not a good value. Maybe in Adams Morgan, Bethesda or Arlington though.
Value means different things to different folks, IHY. Thanks for the review, sswx.
Since people on this forum seem to know about DTSS apartment complexes, maybe you can steer me in the right direction. I am a 31 y/o professional, relocating from Chicago. I need a cat-friendly, pest-free building close to the Metro. Falkland Chase looks nice (in a “vintage” way) on the website. Anybody know more about this place? I don’t care about fancy amenities, but I will freak if there are roaches running around everywhere.
Btw, I know part of FC might get demolished soon — I wouldn’t rent on the north parcel.
Comment by CubsFan
Made Tuesday, 1 of May , 2007 at 9:15 pm
The Bennington is Silver Spring’s newest, most luxurious, and one of the most expensive apartment buildings. You could also try the new green Blair towns but their really expensive. Gramax is new and reasonably priced for being in downtown. Rock Spring Garden just got updated. The Lenox and Alexander house are ok too but I’m not sure about pests. Falkland chase is reasonably priced but old, you will probably find roaches there.
I have lived here for 30 years and I hate it more and more every day. This place was a nice quiet town until 1999 when the vultures started to stick their claws in. This town is full of snobs and yuppies. The only nice place that is still cheap enough to rent is Twin Towers.
All Silver Spring yuppies and snobs go F- yourself!!!