Copyright 2003 San Antonio Express-News
San Antonio Express-News (Texas)
March 15, 2003, Saturday , METRO
SECTION: BUSINESS EXPRESS; Pg. 10H
LENGTH: 1922 words
HEADLINE: cover story ; View from downtown ; Lots of people would love to live downtown. But in San Antonio, not all of them are willing to pay the price.
BYLINE: ANALISA NAZARENO
BODY: Tara Ford feels more alive when she walks from her three-bedroom condominium to the world-renowned River Walk. She marvels each time she steps onto her terrace and sees the Tower Life Building - her favorite of all downtown structures.
And something about the sound of cars and pedestrians passing by her Lexington Avenue home makes her feel like she's part of something bigger and more exciting than the Hill Country.
Nevertheless, her friends still say to her: "You could've gotten a huge house in the Stone Oak area for what you paid for this condominium."
"But to me, this is prime real estate," said Ford, 34, who is single and works as a public relations specialist. "It's a matter of taste and it's a lifestyle choice."
Because living downtown was a high priority for Ford, she paid the uppermost limit of what she was willing and capable of paying for a home - more than $240,000 for her 1,700 square-foot space at the Andalusia Condominiums.
But in this city of penny-pinchers and good value buyers, Ford's friends' feelings are more reflective of San Antonio's attitudes toward downtown living than her own.
According to a recent study commissioned by the Downtown Alliance, while many San Antonio residents may want to live in the downtown area, few are willing to pay for the higher price of real estate and construction.
This is one of the many reasons why more residential development had not taken place in San Antonio during the 1990s as it had in other Texas cities and the nation.
And it is a source of frustration for the Downtown Alliance and city officials. Both say that a greater residential presence downtown would enrich its economic diversity and make the city more attractive to businesses.
"There is no other type of development that would have a better long-term effect on the revitalization of downtown than residential development," said Ben Brewer, the president of the Downtown Alliance.
More people living downtown means more people caring for the safety, beauty, vibrancy and offerings of the area. More housing would make vacant office space a more viable option for businesses. And people living downtown would make the area even more attractive to tourists.
"Think of the great downtowns of this country - San Francisco, Philadelphia, New York, Washington, D.C., Boston - all of them have a complement of people living in them," Brewer said. "Downtown San Antonio used to have more people living in it, but as we all got cars, that promoted the growth of development outside the city. And that's what we're trying to change here."
But according to the $35,000 study by Addison-based PKF Consulting, it would take tax abatements, public land grants, low interest loans, streamlining the permitting process and reducing development fees to make developing downtown residences more attractive.
"It's a multifaceted issue that's not easily solved," said Gregory Crown, vice president for PKF Consulting. "The problem includes the higher price of land and the cost of developing in downtown, the availability of parking, tax issues.
"It includes the fact that San Antonio has relatively lower incomes than Dallas or Houston, and much less downtown employment in high-paying jobs than Dallas or Houston does. All this contributes to the challenge of putting market rate housing downtown."
The group surveyed potential residents - people who worked or were visiting downtown who said they would consider living there. Most said they preferred two-bedroom homes and would live downtown if it cost less than $1,100 a month.
But according to the study, what residents are willing to pay is considerably less than what developers would need to charge to make a 10 percent profit after paying for building or renovating, real estate and design costs.
It's a 13 to 36 cents difference for each square foot for a monthly rental - or a difference of between $130 and $360 a month for a 1,000-square-foot apartment.
Part of the reason the gap exists is that there aren't as many young white-collar workers in downtown San Antonio, said Austin-based developer Kent Collins.
"That's an issue, but with Southwestern Bell and Clear Channel Communications and some of these other great employers having moved to the area, they can bring the niche of people who would move into downtown," said Collins, whose company Centro Development has looked into developing downtown housing.
Another issue is that San Antonio residents are accustomed to paying less for more.
"There just aren't a lot of people willing to pay $1,800 or more in rent. There just aren't," said James Lifshutz, whose Liberty Properties Development group built the Cadillac Lofts and the Andalusia Condominiums, both on Lexington Avenue.
"One of the reasons is that San Antonio has a lower disposable income compared to other areas of the same size. And the options in San Antonio are diverse if you can pay that kind of money. If you can pay $1,800 a month, you can also afford quite a nice house."
Four years after renovating the former Riata Cadillac facility, Lifshutz's 153 units - studios, one- and two-bedroom apartments - are mostly occupied, with an average size of 792 square feet and average rent of $828 a month.
The San Antonio Express-News owns the copyrights to this story. For a full copy of this story, e-mail Analisa and she will send you a clip via e-mail or snail mail.
San Antonio Express-News (Texas)
March 15, 2003, Saturday , METRO
SECTION: BUSINESS EXPRESS; Pg. 10H
LENGTH: 1922 words
HEADLINE: cover story ; View from downtown ; Lots of people would love to live downtown. But in San Antonio, not all of them are willing to pay the price.
BYLINE: ANALISA NAZARENO
BODY: Tara Ford feels more alive when she walks from her three-bedroom condominium to the world-renowned River Walk. She marvels each time she steps onto her terrace and sees the Tower Life Building - her favorite of all downtown structures.
And something about the sound of cars and pedestrians passing by her Lexington Avenue home makes her feel like she's part of something bigger and more exciting than the Hill Country.
Nevertheless, her friends still say to her: "You could've gotten a huge house in the Stone Oak area for what you paid for this condominium."
"But to me, this is prime real estate," said Ford, 34, who is single and works as a public relations specialist. "It's a matter of taste and it's a lifestyle choice."
Because living downtown was a high priority for Ford, she paid the uppermost limit of what she was willing and capable of paying for a home - more than $240,000 for her 1,700 square-foot space at the Andalusia Condominiums.
But in this city of penny-pinchers and good value buyers, Ford's friends' feelings are more reflective of San Antonio's attitudes toward downtown living than her own.
According to a recent study commissioned by the Downtown Alliance, while many San Antonio residents may want to live in the downtown area, few are willing to pay for the higher price of real estate and construction.
This is one of the many reasons why more residential development had not taken place in San Antonio during the 1990s as it had in other Texas cities and the nation.
And it is a source of frustration for the Downtown Alliance and city officials. Both say that a greater residential presence downtown would enrich its economic diversity and make the city more attractive to businesses.
"There is no other type of development that would have a better long-term effect on the revitalization of downtown than residential development," said Ben Brewer, the president of the Downtown Alliance.
More people living downtown means more people caring for the safety, beauty, vibrancy and offerings of the area. More housing would make vacant office space a more viable option for businesses. And people living downtown would make the area even more attractive to tourists.
"Think of the great downtowns of this country - San Francisco, Philadelphia, New York, Washington, D.C., Boston - all of them have a complement of people living in them," Brewer said. "Downtown San Antonio used to have more people living in it, but as we all got cars, that promoted the growth of development outside the city. And that's what we're trying to change here."
But according to the $35,000 study by Addison-based PKF Consulting, it would take tax abatements, public land grants, low interest loans, streamlining the permitting process and reducing development fees to make developing downtown residences more attractive.
"It's a multifaceted issue that's not easily solved," said Gregory Crown, vice president for PKF Consulting. "The problem includes the higher price of land and the cost of developing in downtown, the availability of parking, tax issues.
"It includes the fact that San Antonio has relatively lower incomes than Dallas or Houston, and much less downtown employment in high-paying jobs than Dallas or Houston does. All this contributes to the challenge of putting market rate housing downtown."
The group surveyed potential residents - people who worked or were visiting downtown who said they would consider living there. Most said they preferred two-bedroom homes and would live downtown if it cost less than $1,100 a month.
But according to the study, what residents are willing to pay is considerably less than what developers would need to charge to make a 10 percent profit after paying for building or renovating, real estate and design costs.
It's a 13 to 36 cents difference for each square foot for a monthly rental - or a difference of between $130 and $360 a month for a 1,000-square-foot apartment.
Part of the reason the gap exists is that there aren't as many young white-collar workers in downtown San Antonio, said Austin-based developer Kent Collins.
"That's an issue, but with Southwestern Bell and Clear Channel Communications and some of these other great employers having moved to the area, they can bring the niche of people who would move into downtown," said Collins, whose company Centro Development has looked into developing downtown housing.
Another issue is that San Antonio residents are accustomed to paying less for more.
"There just aren't a lot of people willing to pay $1,800 or more in rent. There just aren't," said James Lifshutz, whose Liberty Properties Development group built the Cadillac Lofts and the Andalusia Condominiums, both on Lexington Avenue.
"One of the reasons is that San Antonio has a lower disposable income compared to other areas of the same size. And the options in San Antonio are diverse if you can pay that kind of money. If you can pay $1,800 a month, you can also afford quite a nice house."
Four years after renovating the former Riata Cadillac facility, Lifshutz's 153 units - studios, one- and two-bedroom apartments - are mostly occupied, with an average size of 792 square feet and average rent of $828 a month.
The San Antonio Express-News owns the copyrights to this story. For a full copy of this story, e-mail Analisa and she will send you a clip via e-mail or snail mail.
Résumé
