2400 14th Street Progresses
17 03 2009Good news, the demolition of the Nehemia Center is finally complete making way for work to start on the long awaited (and delayed) 14th Street project owned by UDR. You may remember that over the last few years this property has been passed around like a hot potato having been owned previously by both Level 2 and Metropolis Development, but it looks like UDR is going to actually take it across the finish line.
The building design is staying the same and has always been pretty decent, we like that the street retail wraps all the way around the first floor. Though we imagine the retail tenant will be much different that the ones that were in the old Nehemia Center. [Rendering: Shalom Baranes Architects]
Have they begun construction? It would be a great thing for this area of the city if this got underway.
Is there any info out about floorplans/ amenities?
From the looks of the picture they linked to, it looks like the construction has started, or at least demolition.
I wouldn’t hold my breath…this is one of UDR’s projects that has not yet received financing (From a recent conference: “We have two that we haven’t started yet. And one’s a piece of property we have in Washington DC inside the beltway…we’re not going to start those unless (A) we going to continue to evaluate the economic feasibility, but (B) we also need to have construction financing in place.”).
Another negative is that UDR has removed the property from their financial supplement. As of 9/30/08, they had spent ~$36m, expected to put up an additional ~$5m and borrow $78m. In this environment, a $78m, 62% LTV construction loan could be difficult.
Wow, the T clearly knows his stuff! Quite some research and real estate development insight there. Do you work in the industry?
SG -
No, not really. I work for an investment firm, so I’ve learned where to look for the publicly available info. I have done some work on UDR in the past, so I’m fairly familiar with their properties. Also – most of the publicly traded REITs provide a ton of information to investors and are quite good about transparency.
I didn’t finish my thought on my first post…2400 14th was on the 9/30/08 financial supplement, but not the 12/31/08 one. We’ll see if it’s mentioned when the 3/31/09 info is published. Also – that quote above was made on 3/3.
Here is a link to the Supplements:
http://www.snl.com/IRWebLinkX/GenPage.aspx?IID=103025&GKP=1073743223
T
They have not started building anything. They have only demolished the old strip mall. That was completed a few months ago, maybe before the new year. There has been no indication that construction there is imminent.