Walton, Okaloosa officials meet to discuss housing challenges
- Thread starter Mike Jones
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Move to a place more affordable is better.
edit - I'm terrible at the quote function.
Thanks. I knew I had replied to one of them and you linked it. We can watch this in real time now. From December I posted this -
"Hammock Bay is *asking* $1.82 per foot and is at 9% vacancy with a great amenity package. Market is at 13% vacancy (all per CoStar)."
Now they are at 49.3% vacancy and asking $1.77 per foot. Property manager has to be freaking out. It sold for $67,000,000 in Oct 2021. At 400 units, that's going from 36 empty units to 197 empty units in 6 months. Not coincidentally, around this time Riverwalk delivered 312 units. They are asking $1.49 per foot and are at 59.5% vacancy. 185 units sitting empty BUT they filled up 127 units. Really looks like a lot of the tenants in HB moved to RW. Market vacancy is 15.6% (not sure how Costar is determining "market" probably auto pulling a comp set based on location) - up from the 13% I posted in December. Between those two that's 382 empty units and 330 filled units in Freeport, and that's before Owl's Head delivers another 300 units. This is gonna be a bloodbath.
Also from that thread in December - "Asking rents are at $1.78 next to Dune Lakes, 280 units delivered in 2020 and still at a 17% (!!!) vacancy. 331 delivered in 2018 asking $1.74 and at 12.5% vacancy."
Now DL at 8.9% vacancy, asking $1.97 per foot. 331 at 3% vacancy, asking $2.10 per foot. 280 and 264 total units respectively. Not sure if some is seasonality because I haven't tracked it but that's quite an improvement for both. Still - did read a week or so ago that DL was on watchlist because it was at a 0.80x debt service coverage. Almost certain it was floating rate debt so until treasuries see lower yields DL ownership will probably be coming out of pocket to keep it current.
I've posted a lot of new apartment projects in the last couple of years - so many I can't remember them all.
Here are some:
Commercial - The Sandbar - 330 Multifamily, Commercial, Hotel on U.S. 98
https://defuniakherald.com/news/no-public-hearings-required-for-330-unit-apartment-bank-hotel-project-in-santa-rosa-beach/ By DOTTY NIST No public hearings will be required for The Sandbar, a large apartment/hotel/bank development proposed for the south side of U.S. 98 in Santa Rosa Beach...sowal.com
Commercial - $50M Construction Begins: The Grove at Seascape Resort
The Highland Group is pleased to announce that construction is set to begin for The Grove at Seascape Resort, a luxuriously appointed, multi-phase development within the Seascape Golf, Beach & Tennis Resort in Miramar Beach, Florida. This expansive project is set to redefine luxury living on the...
Commercial - Arcadia at Hwy 20 - 352 Apartments in Freeport
The agenda item coming forward with the most proposed units was Arcadia at Hwy. 20, consisting of 352 multi-family units on 26.9 acres. The property is located on the southeast corner of the Hwy. 20/CR-83A West intersection, west of Freeport. It had been rezoned by the Walton County Board of...
Commercial - 510 multi-family units, 138,000 sf commercial on US98 at Peach Creek
By DOTTY NIST https://defuniakherald.com/news/conceptual-plan-okd-for-apartments-aging-in-place-development-on-old-barretts-store-property/ A recently-approved conceptual plan has set the stage for one of Walton County’s most historic properties to transition into the 21st century in a big way...
Commercial - Hawk's Landing - 150 townhomes at Chat Holly Road
Hawk's Landing Townhome Community: Request to approve by final order. Project MA]20-000023 is being reviewed by Stephen Schoen. This is a major development order application submitted by Nautilus Civil Engineers, Inc. on behalf of Southstar Communities requesting to construct a phased...
Commercial - 63 townhome units at Moll Drive - Helen McCall Park
Moll Townhomes - Request to approve by final order. Project number MAJ23-000006 is being reviewed by Tim Brown. This is a major development order application submitted by Emerald Coast Associates Engineering, LLC on behalf of SRB Land, LLC, requesting approval to develop 63 townhome units with...
Commercial - The Landing at Santa Rosa - 40 townhomes East Hewett Rd
https://defuniakherald.com/news/planning-commission-takes-up-townhomes-subdivisions-commerce-park-gym-facility-amendments-and-abandonment/ By DOTTY NIST The Landing at Santa Rosa is a proposal for 40 townhomes, clubhouse amenity, pool, and infrastructure on 10.03 acres on the east side of East...
Commercial - 42 Townhomes on Goldsby Rd North of 98
https://defuniakherald.com/news/trc-oks-scenic-sothebys-addition-advances-mcdonalds-and-other-projects/ The Walton County Technical Review Committee (TRC) July 5, 2023 Dotty Nist Hidden Pines Townhomes was one of two major projects on the meeting agenda that was advanced in the process by...
Commercial - 300 Apartments + Commercial in Freeport at 331 and 3280
At this time known only as EMF Freeport (Encore Multi-Family, LLC) - Apartments just north of the 331 bridge on land owned by 331 Town Center LLC Not certain if this is related to "Encore at 331" already approved 258 apartments nearby to the north...
A thread on affordable Housing in Walton County:
Misc - Walton County Affordable Housing
https://defuniakherald.com/news/walton-county-affordable-housing-advisory-committee-discussion/ Can a teacher afford a home in Walton County? By RUBY KEARCE At the July 18 meeting of the Walton County Affordable Housing Advisory Committee (AHAC) committee member Teresa Jones discussed...
Thanks. I knew I had replied to one of them and you linked it. We can watch this in real time now. From December I posted this -
"Hammock Bay is *asking* $1.82 per foot and is at 9% vacancy with a great amenity package. Market is at 13% vacancy (all per CoStar)."
Now they are at 49.3% vacancy and asking $1.77 per foot. Property manager has to be freaking out. It sold for $67,000,000 in Oct 2021. At 400 units, that's going from 36 empty units to 197 empty units in 6 months. Not coincidentally, around this time Riverwalk delivered 312 units. They are asking $1.49 per foot and are at 59.5% vacancy. 185 units sitting empty BUT they filled up 127 units. Really looks like a lot of the tenants in HB moved to RW. Market vacancy is 15.6% (not sure how Costar is determining "market" probably auto pulling a comp set based on location) - up from the 13% I posted in December. Between those two that's 382 empty units and 330 filled units in Freeport, and that's before Owl's Head delivers another 300 units. This is gonna be a bloodbath.
Also from that thread in December - "Asking rents are at $1.78 next to Dune Lakes, 280 units delivered in 2020 and still at a 17% (!!!) vacancy. 331 delivered in 2018 asking $1.74 and at 12.5% vacancy."
Now DL at 8.9% vacancy, asking $1.97 per foot. 331 at 3% vacancy, asking $2.10 per foot. 280 and 264 total units respectively. Not sure if some is seasonality because I haven't tracked it but that's quite an improvement for both. Still - did read a week or so ago that DL was on watchlist because it was at a 0.80x debt service coverage. Almost certain it was floating rate debt so until treasuries see lower yields DL ownership will probably be coming out of pocket to keep it current.
Didn't see this one coming out of the ground but it is now. 258 units with a $40 million construction loan.
liveoakcontracting.com
Looking at the multi market in Freeport. First two are in lease up, HB was pretty well occupied but Riverwalk opened and rents south of the bay dropped and now they are half empty.
Madison at Owl's Head - 300 units - 90% vacant - asking $1.95 per foot.
Riverwalk - 312 units - 48% vacant - asking $1.50 per foot
Hammock Bay - 400 units - 49% vacant asking $1.81 per foot
A few south of the bay
Dune Lakes - 280 units - 9% vacant - asking $1.93/ft
Sanctuary 331 - 264 units - 2.3% vacant - asking $1.94/ft
Terra Mar - 310 units - 7% vacancy - asking $1.85/ft
So for now south of the bay is mostly stabilized, albeit with, like 2018 rents, but there are a ton of deliveries coming. Freeport is in trouble for a while. Can't believe a bank closed on a construction loan in Freeport late last year.
Arcadia 331 – Live Oak Contracting
Arcadia 331 Apartments offer an array of luxurious amenities for residents to enjoy. A clubhouse, pool with grills, dog park, and Guest suites for visitors.
liveoakcontracting.com
Looking at the multi market in Freeport. First two are in lease up, HB was pretty well occupied but Riverwalk opened and rents south of the bay dropped and now they are half empty.
Madison at Owl's Head - 300 units - 90% vacant - asking $1.95 per foot.
Riverwalk - 312 units - 48% vacant - asking $1.50 per foot
Hammock Bay - 400 units - 49% vacant asking $1.81 per foot
A few south of the bay
Dune Lakes - 280 units - 9% vacant - asking $1.93/ft
Sanctuary 331 - 264 units - 2.3% vacant - asking $1.94/ft
Terra Mar - 310 units - 7% vacancy - asking $1.85/ft
So for now south of the bay is mostly stabilized, albeit with, like 2018 rents, but there are a ton of deliveries coming. Freeport is in trouble for a while. Can't believe a bank closed on a construction loan in Freeport late last year.
Owl's Head trying to get SoWal prices? WTF
Hammock Bay I could almost see but still.... Loooong way from civilization and the beach.
Hammock Bay I could almost see but still.... Loooong way from civilization and the beach.
James - one thing interesting I wish I had been tracking is concessions. Owl's Head is offering 2 months free, so effective rents are $1.62. Concessions are normal in lease up, but 2 months shows how bad it is (typically a month). Riverwalk, also in lease-up, is offering 3 weeks free (5.8% - could mean some are getting half month, some whole, not sure). Despite 49% vacancy, HB is not offering concessions. Guessing they are still trying to process going from 9% vacancy to 49% in a matter of months. Honestly the entire Freeport multi market is trying to figure out why their actual numbers are so far off what they modeled.
Don't see anyone offering concessions south of the bay (1% or less). To Matt's point - they would probably only be collecting their deposit if they did.
Don't see anyone offering concessions south of the bay (1% or less). To Matt's point - they would probably only be collecting their deposit if they did.
Good time to revisit this out of my own curiosity. These are as of 10/4/24. All info from costar.
Madison at Owl's Head - 300 units - 88% vacant - asking $1.95 per foot. 0% concessions (I know this is wrong)
Riverwalk - 312 units - 36.7% vacant - asking $1.52 per foot. 4.1% concessions (probably a mix of new concessions and burn offs)
Hammock Bay - 400 units - 36.3% vacant - asking $1.83 per foot. 1% concessions.
Dune Lake - 280 units - 11% vacant - asking $1.95 per foot. 1% concessions.
Sanctuary 331 - 264 units - 11% vacant - asking $1.78 per foot. 1% concessions
Terra Mar - 310 units - 6.8% vacant - asking $1.70 per foot. 0.8% concessions.
NEW
The Beacon (by SWHS) - 260 units - 99.6% vacant - asking $2.02 per foot. 16.7% concessions (about 2 months free)
In Freeport, of these 3 multis with 1012 units, we went from 616 empty (61% vacant) to 524 empty (52% vacant) from July to October. Rents slightly down but about constant. Not terrible considering the off-season. Still a ton of units to absorb with many more under construction.
Of the first 3 in south Walton, of these 3 multis with 854 units, we went from 53 empty (6.2% vacant) to 81 empty (9.5% vacant) from July to October. Rents however dropped from averaging around $1.91/ft to around $1.81/ft.
So south of the bay, rents are down and vacancy is up. North of the bay is about holding steady with tenants bouncing around. Really interested to see how the new construction impacts the market. The one behind SWHS (The Beacon) is just starting to lease 260 units. Really interested to see how the one on Moll by St Rita (Saltaire - 256 units) delivers and continues to push down rents in the area. If anyone wants me to add a development to the list let me know - there are a few that I haven't tracked but can start.