Monday, June 29, 2009

Construction Stalled!

It appears that activity has completely ceased at the contstruction site. The Glen At Valley Glen may be looking for a bailout! Or maybe just some new financing?
Posted by at No comments:

Tuesday, November 18, 2008

Discussing Mixed Use Developments Like The Glen

Here is the first of a series of videos of a very educated man discussing the value of mixed use in California, just like The Glen At Valley Glen. He first defines what mixed use is, then gives a short history of mixed use and the population of California in particular. He begins to touch on the evolution that Los Angeles is going through before the video stops, and on to number 2.

The second part of the series addresses traffic congestion, increased population density as a solution, and how mixed use helps accomplish this goal. Using San Francisco as an example, he illustrates that the limited area of the geography forced them into mixed use much earlier than Los Angeles. He also touches on how the urban sprawl of the Los Angeles Real Estate market lacks a sense of community. Part of the reason is lack of mixed use.

Pasadena is a great example of a city that does already incorporate mixed use. Developers swarm an area once mixed use begins being used, making property values soar. This is the expected effect that The Glen At Valley Glen will have on the area, by opening the flood gates for more similar developments. So buying in the adjacent area now is a speculative but wise move in seeking fast value appreciation without even developing the property. Addressing the parking issues come to the forefront of creating mixed use developments. Public parking using underground, above ground, easing the parking restrictions, mass transit, and hydraulic lifts are the solution to parking congestion.


The local market determines what type of residential offerings are made in mixed use. The short history of local mixed use has tended towards high end condominiums and apartments. When governments offer incentives to make "affordable" housing, it tends to create housing for the middle class. The Los Angeles population is slated to grow by HUGE numbers just in the next 6 years. This means that Los Angeles Real Estate in general will continue to see increased demand and values. New development projects are already planned and in process across Los Angeles. The Glen At Valley Glen is the first mixed use in this area, and I know of at least one more planned to follow this development.


Even without government incentives, mixed use is inevitable. But government restrictions do hinder how fast it will come. By requiring developers to control large contiguous lots, governments are effectively halting mixed use development until the economics allow developers to pay for and organize multiple adjacent property purchases. Zoning and allowable density are the major concerns of mixed use developers.


Go to the city zoning office, find out the zoning for a parcel, then find out the allowable density. Finding out the number and size of units that can be built are the keys to evaluating a mixed use project. Then evaluating the net rental value of the sum of those units is the second piece of the puzzle. Construction and acquisitions costs are the third step. Retail rental rates can carry a development on their own sometimes, and is definitely the focus of the developers of The Glen At Valley Glen.


More and higher taxes for the local governments are a very attractive incentive. The high population density also allows for more operating hours for local businesses. Think of New York. You can get a piece of pizza at any time of the day or night. This is really a series spelling out the basics of mixed use from multiple points of view, mostly the developers, brokers, and governments are addressed and the tangible benefits of mixed use for the residential owner/renter are not truly addressed.
Posted by at No comments:
Labels: , , , , , , ,
Subscribe to: Comments (Atom)