AggieBarstool said:
And people still deny we have a housing glut in BCS.
It's a public-private partnership. The buildings are built on A&M land, and A&M gets a stream of income from them as land rent. Given this situation, they become eligible for funding via tax-exempt bonds, in the same manner as any governmental institution. The bonds are tax-exempt for the holders. The property is exempt from city real estate taxes because it's A&M land. But the developer is not non-profit.threecatcorner said:
I don't get how the group behind Park West qualifies as either tax-exempt or "non-profit".
Heck, there is a shortage for apartments for non-students and families.CS78 said:AggieBarstool said:
And people still deny we have a housing glut in BCS.
There's a student apartment glut but still a large shortage in starter/ low end houses. How it all shakes out, we'll have to wait and see. I expect an increase in empty rent houses will increase the supply of starter homes but the market will be able to absorb it. As for the apartments, woo-hoo, more low income housing and crime injected into the older areas.
Yup. According to the article the plan is to get them occupied then start increasing the rent. Sound plan, IMO.Cyp0111 said:
Techno,
They cut rent to a level that doesn't cover operating expenses and now they're pulling reserves. Banking on the ability to increase rent y-o-y. The bonds were downgrade 8
Levels...
Except students can always go rent elsewhere if Park West's raises the rent to an uncompetitive level.techno-ag said:Yup. According to the article the plan is to get them occupied then start increasing the rent. Sound plan, IMO.Cyp0111 said:
Techno,
They cut rent to a level that doesn't cover operating expenses and now they're pulling reserves. Banking on the ability to increase rent y-o-y. The bonds were downgrade 8
Levels...
Absolutely. Like I said, there's risk in everything. It's fun to see everybody agreeing with me on that.lost my dog said:Except students can always go rent elsewhere if Park West's raises the rent to an uncompetitive level.techno-ag said:Yup. According to the article the plan is to get them occupied then start increasing the rent. Sound plan, IMO.Cyp0111 said:
Techno,
They cut rent to a level that doesn't cover operating expenses and now they're pulling reserves. Banking on the ability to increase rent y-o-y. The bonds were downgrade 8
Levels...
That, and the fact that A&M, at some point, can mandate freshmen and/or sophomores live "on campus". Problem (for A&M) solved!techno-ag said:Absolutely. Like I said, there's risk in everything. It's fun to see everybody agreeing with me on that.lost my dog said:Except students can always go rent elsewhere if Park West's raises the rent to an uncompetitive level.techno-ag said:Yup. According to the article the plan is to get them occupied then start increasing the rent. Sound plan, IMO.Cyp0111 said:
Techno,
They cut rent to a level that doesn't cover operating expenses and now they're pulling reserves. Banking on the ability to increase rent y-o-y. The bonds were downgrade 8
Levels...
Now, from a more positive perspective I think their location on campus will prove to be a draw to some students and their parents. I also think that all the "luxury" rents will rise over time as their property tax increases kick in, and Park West has another benefit there since they're tax free.
It may be A&M land, but living at Park West is hardly living on campus. If I were an engineering student, I would much rather live in Northgate near my classes than way out past the athletic fields.Oogway said:
I keep hearing this refrain and I am not sure where it is getting traction because are there 10,000+ beds for heads on campus even with Park West? The freshman classes have been close to 10,000 (actually enrolled) for at least the last four years with last fall reaching 11,000. That's a lot to house on campus. I guess A&M could mandate it in the future, but I think if RELLIS grows it will become unlikely. Those students may want to live closer in to use their sports passes and be near shopping etc.