Just call it Apartment Springs
By Silver Springer • Jun 30th, 2008 • Category: MORE NEWS, Real Estate
Cause that’s the bulk of what we’re getting. The residential inundation continues in downtown Silver Spring and the latest participant is Washington Property Company and their 1050 Ripley Street. Despite the heavy market downturn and a tsunami of residential/apartment construction, the developer is still moving forward. In fact, On July 3rd, 2008, Washington Property Co will actually request from the planning board an allowance to increase the number of residential units from 305 to 318. The project also requests an increase of the retail space from 3,068 to 7,460.
Granted they threw out the old design and the updated building is a significant improvement (perhaps after a scolding from yours truly for the very dry previous design) but that’s a story for another day. I still find it odd and a little disturbing that Washington Property Co’s first ever residential project from the ground up is in Silver Spring, is that all its good for? Looking at their roster of buildings it’s the only residential development, and despite Silver Spring’s very low office vacancy (around 5%), they would rather add 400,000 square feet of speculative office space (pdf) to Gaithersburg’s already high, double digit vacancy (around 14%).
All in all, as I write this, there are currently 1,029 apartment units under construction in the central business district, 254 condominiums units (that could change), United Therapeutics Headquarters and the Montgomery College Performing Arts Center. Some of these projects will include retail and the combined total is approximately 45,377 square feet.
Projects like JBG’s Veridian (formerly Silver Spring Gateway) expect at least $1,800 for a one bedroom in their Luxury Apartments so expect 1050 Ripley to follow. I predict heavy competition and incentives on the apartment front though, cause a little birdy told me the pool of potential renters with good credit are becoming harder and harder to find.
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Well, as gas approaches $5 a gallon and higher, I suspect there will be a flight from the outer suburbs to the inner suburbs, where the commute is shorter and cheaper. The developers are just one step ahead. And a populous and vibrant Silver Spring is good for us all… right?
Veridian had a booth at Crafty Bastards, which I thought was odd. But, hey, maybe that’s smart to market to all the District residents coming up on the Metro for CB.
I am disappointed by the willingness of the city planners to accept lack luster structures in our city, especially at a time when innovative building designs are plentiful. Is it necessary to sacrifice attractive design for affordability? I mean no slight to Bethesda, but we do not want to be a part of the Rolex Set. Silver Spring has it’s own unique identity that I would describe as T-Shirt Tech. We’re sort of the tech equivalent of Blue Collar and just as protective of our identity. We may not be flashy, but we do love great art. Why can’t that be reflected in our architecture?
It doesn’t matter if you’re t-shirt tech or pinstriped suit, or any other superficial label. What matters is architecture that is enduring both in style and substance. That’s what we should be aiming for in Silver Spring.
How old are the beautiful brownstones of Dupont Circle or NY’s upper west side. How old are the beautifu buildings of Paris or Tuscany? Let us build with an idea towards beauty and sustainability.
Right…we’re going to get lowest cost-first crap that will only make us all appreciate the great architecture we encounter when we travel elsewhere; it’s the same short-sighted mentality that advocates putting the purple line everywhere but where it belongs, which is underground.
Big Macs R Us.
The little birdy is pretty smart. Look, the days of sky-high starting rents are coming to an end. Let’s take a look at starting rent for a one-bedroom at that monstrosity called “The Veridian”.
The rent is $1,800 per month. I will bet that the rent does NOT include utilities. Since the average PEPCO electric bill has increased like 20 percent this past year, you can expect the average tenant to pay a hefty monthly fee. Gas + electric + water might be say $125 per month. Let’s say you have a vehicle. I bet the Veridian doesn’t offer free parking to tenants in the garage. They can sock tenants with a $75 per month parking fee. Add up all of the shit and you have about $2,000 per month in apartment expenses.
$2,000 x 12 months is $24,000 per year devoted towards a shoebox apartment in downtown Silver Spring. Rents should be below 30 percent of your income in terms of an affordability yardstick. This means an individual must earn at LEAST $72,000 per year to get by. When you strip away the federal/state taxes, SS and Medicare payments, and retirement account contributions…the $24,000 per year expense on apartment living really hurts. So, you would really need to make at least $80,000 per year to be able to comfortably afford a one-bedroom apartment in The Veridian.
Question…how many young single professionals under the age of 30 make at least $80,000 per year in the Washington, DC area? Not as many as you think.
$1800 is a sh*t load of money. But almost all of my neighbors in the Silverton are over 30. I think most people in the area are.
Most post-30 year olds migrate to larger living spaces such as town homes or bigger apartments. By then, most people are married and they have–or expecting–children. That requires more space.
My point is that there is a finite number of high-income professionals in the DC area. Plus, these well-compensated professionals have CHOICES regarding neighborhoods.
The real estate developers think everyone in DC makes lawyer-like salaries and they price the properties accordingly.
I hope that IHY is right and that the overabundance of apartments in the CBD leads to price reductions. Silver Spring’s middle and working class would benefit if there were more one-bedroom apartments priced at, say, $900/month and two-bedrooms priced at $1200.
When I was in my mid-twenties and working for a non-profit organization and making $32,000/year I was able to live in a group house in Takoma Park for $400/month, including utilities. That was back in the late 1990s.I don’t know that I’d be able to find something like that now.
Condos in Downtown Silver Spring are selling better than anyone thinks. A few have had multiple offers lately and are selling fairly quickly compared to the other areas of Silver Spring. People don’t want the driving, traffic and gas hassle anymore. Downtown Silver Spring Condos fit the bill. They are new buildings and more affordable than DC. What more could you want? Our zipcode 20910 is doing better than any other in the Real Estate Market right now. Prices are up and inventory is down in 20910.
I also heard from a little bird that the rents in the Veridian are going to be very very high. $1800 is probably for the smallest unit they have.