By Bradley Parsons
Staff Writer
The City has taken some positive steps toward a healthy downtown residential market, according to a report released this week. But the report’s author said City planners should ensure rentals and more affordable apartments are available as that market develops.
Downtown currently offers a near even split among rentals and for-sale apartments. There are about 1,100 apartments available in the area surveyed with another 1,100 scheduled for construction in the next few years. Most of those units are intended for sale at the expensive end of the market.
As downtown continues to add apartments, the City should encourage developers to build affordable units as well, said Ray Rodriguez, who presented his report to the Downtown Development Authority board.
In 2002, for-sale apartments were scarce among the more than 400 units.
There were about five rentals available for every for-sale unit. That statistic evened out last year when Berkman Plaza decided to sell more than 200 apartments instead of collecting rent.
Downtown will need rental and affordable apartments to draw residents who can’t afford to pay $250,000 for a Plaza condo, said Rodriguez. Board member Jay Jabour said thousand-dollar monthly apartments would attract young people, who could help enliven downtown after business hours.
“When I look in the future, I see more sales than rentals on the way,” said Jabour. “We have to make sure we have market-rate rentals downtown to bring more young people downtown. If we provide available, affordable units downtown, people will come.”
With or without the City’s prodding, Rodriguez said developers could have another reason to build cheaper units: they sell out. The Parks at the Cathedral, the only downtown development the report classifies as “affordable,” sold out its 52 condos in 14 months. An average price tag around $100,000 drew buyers despite little promotion from realtors.
Several Cathedral residents told Rodriguez that some realtors wouldn’t show the low-cost condos.
“Realtors weren’t even aware of the Cathedral but, despite the obstacles, it sold out in 14 months,” said Rodriguez.
At the luxury end of the market, the Plaza at Berkman has sold 65 of 206 condos, according to the report.
Board member Denise Watson, whose office is a short walk away from the Cathedral, said the presence of full-time residents has transformed the area. More affordable apartments would translate to more residents with a personal stake in downtown, she said.
“Whether they’re for rent or for sale, we should be looking to add affordable housing,” she said. “I’ve seen a dramatic improvement in the area since the Parks at the Cathedral filled up. It’s turned into a full community; people are in the street walking around at night.”
To keep those residents happy, Rodriguez said the City needed to make everyday conveniences available. In interviews with downtown residents, Rodriguez recorded less concern about crime and more frustration with the absence of a supermarket or gas station.
“People want to know, ‘Where can I buy a bottle of milk or a can of soda? Where can I take my kid to a movie?’” said Rodriguez. “In due time, you’ll have 10,000 residents downtown. You have to have something for them to do.”
The DDA paid Rodriguez $6,790 for the study. The board will question Rodriguez about the results at next month’s meeting.