WallStreet Tower Omaha

Dark Eyes · Post by **Dark Eyes** » Wed Sep 03, 2008 11:39 pm

This is a telling sign about our current real estate market in Omaha,

Or maybe buyers just don't want to pay that much per square foot.

adam186 · Post by **adam186** » Thu Sep 04, 2008 1:35 am

I am an expert in the condo market. I can assure you Erik that everything is fine....although it could be doing better. Keep in mind this is the biggest condo project ever attempted in Omaha. Be patient and let the professionals handle it. Let's not get too far off subject here though.

Erik · Post by **Erik** » Thu Sep 04, 2008 1:47 am

adam186 wrote:I am an expert in the condo market. I can assure you Erik that everything is fine....although it could be doing better. Keep in mind this is the biggest condo project ever attempted in Omaha. Be patient and let the professionals handle it. Let's not get too far off subject here though.

I'm glad you can chime in Adam! Do you know if the Walstreet project is being negatively affected along with the rest of the 2008 Omaha real estate crash? (I know everybody, the rest of the US has been in a crash since 2006 and our market has been far better off)

Stargazer · Post by **Stargazer** » Thu Sep 04, 2008 2:14 am

I wouldn't say Omaha's market has 'crashed'. Homes are on the market longer... prices have retreated only slightly. Now my sister/parents home of Phoenix... that is a CRASH. Homes in my sister's neighborhood which went for over $300,000 (a 1,200 sq foot ranch no less)... are now in the low $200's. Of course they were in the low $100's at the turn of the century. Now that is volatility.

TitosBuritoBarn · Post by **TitosBuritoBarn** » Thu Sep 04, 2008 5:04 am

Erik wrote:If I were Townsend, I'd place the tower on hold until Omaha's real estate market picks up from the disaster of a year AND until the other developments which are overly saturating the market to have time to sell...

A witch! A witch! Burn him!!

almighty_tuna · Post by **almighty_tuna** » Thu Sep 04, 2008 5:52 pm

So, I was playing hangman with someone who knew the hotel that would be in Wallstreet Tower. I can't figure out what it is. Maybe you can help me...

adam186 · Post by **adam186** » Thu Sep 04, 2008 6:03 pm

I'm silent. :music: Let the speculation begin.

DTO Luv · Post by **DTO Luv** » Thu Sep 04, 2008 6:07 pm

Super 8?

S33 · Post by **S33** » Thu Sep 04, 2008 6:37 pm

I would think a developer such as Townsend would take the downtown job market and correlating demographics into consideration before new home sales in west Omaha as a better indicator of the success of the project as a whole.

I doubt the project will be hugely successful initially but in the long run it will be a good investment.

S33 · Post by **S33** » Thu Sep 04, 2008 6:39 pm

Erik wrote:
adam186 wrote:I am an expert in the condo market. I can assure you Erik that everything is fine....although it could be doing better. Keep in mind this is the biggest condo project ever attempted in Omaha. Be patient and let the professionals handle it. Let's not get too far off subject here though.

I'm glad you can chime in Adam! Do you know if the Walstreet project is being negatively affected along with the rest of the 2008 Omaha real estate crash? (I know everybody, the rest of the US has been in a crash since 2006 and our market has been far better off)

Omaha is not in a "real-estate crash". If you choose to define "crash" as would would in most other markets in the US Omaha would not fit that category. It's not 2004 but it sure hasn't crashed.

adam186 · Post by **adam186** » Thu Sep 04, 2008 8:16 pm

^Absolutely. The Omaha housing market has definitely not crashed. In fact, far from. Omaha in general has actually appreciated, only problem is, is that it didn't appreciate nearly as much as it usually does in previous years. Omaha is a very conservative bunch and there for you never you see a sudden rise and fall in value across the board.

With that said, one must only look at the sales recently in some of the major new construction condo projects. Examples include Riverfront Place which have pre-sold about 45-50% in RFP Tower II in only 4 months. jLofts on the Market just sold 8 units (+15%) in the last 2 months. Most condo projects that WTO is competing is against are filling up quickly as is WTO itself. I can continue on and on, but I have an appointment with a condo buyer in 15 min. We're going to look at 19th St Lofts, wish me luck!

Now back to regular progamming! I can't wait for the announcement.

thenewguy · Post by **thenewguy** » Fri Sep 05, 2008 2:58 am

DTO Luv wrote:Super 8?

Motel 6. Tell 'em Tom Bodette sent you, they'll leave the light on.

Erik · Post by **Erik** » Fri Sep 05, 2008 5:24 am

adam186 wrote:^Absolutely. The Omaha housing market has definitely not crashed. In fact, far from. Omaha in general has actually appreciated, only problem is, is that it didn't appreciate nearly as much as it usually does in previous years. Omaha is a very conservative bunch and there for you never you see a sudden rise and fall in value across the board.

With that said, one must only look at the sales recently in some of the major new construction condo projects. Examples include Riverfront Place which have pre-sold about 45-50% in RFP Tower II in only 4 months. jLofts on the Market just sold 8 units (+15%) in the last 2 months. Most condo projects that WTO is competing is against are filling up quickly as is WTO itself. I can continue on and on, but I have an appointment with a condo buyer in 15 min. We're going to look at 19th St Lofts, wish me luck!

Now back to regular progamming! I can't wait for the announcement.

Thanks Adam, you've said all that needs to be said.. It sounds better than what the media and other outlets are making it out to be (surprise, surprise huh?)

StreetsOfOmaha · Post by **StreetsOfOmaha** » Fri Sep 05, 2008 5:02 pm

Thanks for that Adam.

thenewguy · Post by **thenewguy** » Sun Sep 07, 2008 2:25 pm

Has anyone else seen the commercials for Wallstreet Tower? I was watching a show on the travel channel and they had one on there, very nicely done, talking about the lifestyle, showed some of the units and people watching football, entertaining, relaxing, and talked about the rooftop pool, movie theater, fitness center, and proximity to downtown living. Pretty schnazzy. And in regards to construction, i thought that (with available units being sold) they were going to start in like November, or late 08/early 09, not a year from now? Obviously, they may not hit that schedule because of units still not being sold, but is that the time frame they originally were talking about (without having to reread all those pages)?

Bobcat · Post by **Bobcat** » Thu Sep 18, 2008 10:18 pm

almighty_tuna wrote:So, I was playing hangman with someone who knew the hotel that would be in Wallstreet Tower. I can't figure out what it is. Maybe you can help me...

I mentioned Indigo (Intercontinental Hotel Chain) in an earlier page on this thread since that was the rumor I heard. At this point it is tough to say where this project is heading. It has taken more than two and a half years (yawn) for Townsend to get to this point. A deal with a hotel is crucial since that represents a large number of the pre-sold space. If Townsend drags his feet on that negotiation like he has with the rest of the project and it falls through I just don't see this project taking place.

S33 · Post by **S33** » Fri Sep 19, 2008 1:40 pm

Bobcat wrote:
almighty_tuna wrote:So, I was playing hangman with someone who knew the hotel that would be in Wallstreet Tower. I can't figure out what it is. Maybe you can help me...

I mentioned Indigo (Intercontinental Hotel Chain) in an earlier page on this thread since that was the rumor I heard. At this point it is tough to say where this project is heading. It has taken more than two and a half years (yawn) for Townsend to get to this point. A deal with a hotel is crucial since that represents a large number of the pre-sold space. If Townsend drags his feet on that negotiation like he has with the rest of the project and it falls through I just don't see this project taking place.

Trust me, the project will go through, just maybe not quite as scheduled.

Bobcat · Post by **Bobcat** » Fri Sep 19, 2008 4:04 pm

Midtown Crossing has more condominiums and is going to meet or beat the schedule they originally stated. Midtown Crossing is blowing away the cash strapped, inexperienced developers from KC. Wall Street Tower Omaha has, to this point, been an embarrassment for the city and Fahey. If you don’t agree, wait two more years when the site still hasn’t broken ground. Condo towers like this have been built all over the US during the past 5 years. Construction should take 18 months to a maximum of 2 years. It might be better if Townsend doesn’t start since they will be extremely challenged to finish in a reasonable time (I’m thinking 3 or 4 years).

Townsend has never built a condo tower (especially a thirty plus story tower). It’s too bad Omaha has to be their guinea pig. It would help if the real estate market liked a Celebrity home packed into a condo tower made from store front glass …. at least they would have hit the magic number that some people believe actually has a bearing on the project.

S33, why do you think that it will happen? I’ve provided reasons why, at this point it seems more unlikely. Please provide reasons why you think it will happen.

Erik · Post by **Erik** » Fri Sep 19, 2008 4:10 pm

So, what floor would they be currently on if we would've gone with America First?

Stargazer · Post by **Stargazer** » Fri Sep 19, 2008 4:15 pm

Yes, take a breath people ... it's not going to happen. There... I said it.

I've come to the conclusion that Townsend is just a slightly more savvy Steve Minard.

Well, the site is basically ready to go... hopefully this will all hit the fan soon, and someone else will come along.

DTO Luv · Post by **DTO Luv** » Fri Sep 19, 2008 4:19 pm

Nope. With the City giving into a suburban mindset again (a la Conagra) with BCBS, their is currently not a large enough company to anchor the building AF wanted to build which would have had space for other companies to lease as well. For the UP site it's Wallstreet or bust. Hmm.. with what's been going on the last few days maybe I should use "Wallstreet" and "bust" in the same sentence.

Erik · Post by **Erik** » Fri Sep 19, 2008 4:20 pm

Stargazer wrote:Yes, take a breath people ... it's not going to happen. There... I said it.

I've come to the conclusion that Townsend is just a slightly more savvy Steve Minard.

Well, the site is basically ready to go... hopefully this will all hit the fan soon, and someone else will come along.

Well, at least we got the UP building to be demolished...

Erik · Post by **Erik** » Fri Sep 19, 2008 4:29 pm

I say, we should use the old UP site to build a couple of statues..

One of Minard sitting in a rollar coasting staring into the sky...

And the other of Townsend with Legos building a sklyine, but crying because one of the buildings collapsed :D

Tornado · Post by **Tornado** » Sat Sep 20, 2008 3:30 am

This project has been nothing but frustrating from the get go. After every hurdle and delay, the height obsessed part of me would take over and I would suddenly think things are going to turn positive on the project. I honestly think the chances of this tower actually being built from this point on are really slim. I hope I'm wrong but I just don't see it. I guess all of us height obsessed, skyline fans will have to do with River Front tower 2. Does anyone know exactly what the process would be if Townsend backs out of this project?

Erik · Post by **Erik** » Sat Sep 20, 2008 6:23 pm

Tornado wrote:This project has been nothing but frustrating from the get go. After every hurdle and delay, the height obsessed part of me would take over and I would suddenly think things are going to turn positive on the project. I honestly think the chances of this tower actually being built from this point on are really slim. I hope I'm wrong but I just don't see it. I guess all of us height obsessed, skyline fans will have to do with River Front tower 2. Does anyone know exactly what the process would be if Townsend backs out of this project?

Well, when in fact it is true that this is to be the case, I'm sure there would be some quick meetings taking place in the city council... I'm sure they would open the property back up for bids again..

Even if Wallstreet doesn't work out, the fact of the matter is there is legitimate interest to build in DTO.. We are just going to have to sit and wait this one out..

Big E · Post by **Big E** » Sat Sep 20, 2008 6:43 pm

Erik wrote:Even if Wallstreet doesn't work out, the fact of the matter is there is legitimate interest to build in DTO.

Yeah, the housing market is in shambles and the federal government is bailing out lenders as fast as the sun can come up. Let's get to digging.

Bobcat · Post by **Bobcat** » Sat Sep 20, 2008 8:27 pm

Tornado wrote: Does anyone know exactly what the process would be if Townsend backs out of this project?

Townsend has a lot invested (I'd guess at least $4M) with the Sales Office and Effort as well as the demolition. I think the company owns the property and bought it for something like one dollar from the City of Omaha. There may even be some tax increment money already spent that I suppose could be assigned to a future owner.

I've not met Mr. Townsend but I take him at his word that he is a long term player in the Omaha market. The Brandies purchase helped support that notion.

It's not 2003 anymore. It takes more determination, resources and experience than ever to pull this condo tower off right now for arguably smaller profits.

With the collapse of the credit market and Townsend already being thinly financed (loan covenent of 50% sold) I wouldn't be surprised at all if the company is facing increased lending requirements. Another thing, with the price of steel going through the roof it has too be difficult to price the condos that won't be closed on and moved into for 3 or so years.

Big E · Post by **Big E** » Sat Sep 20, 2008 9:02 pm

Bobcat wrote:With the collapse of the credit market and Townsend already being thinly financed (loan covenent of 50% sold) I wouldn't be surprised at all if the company is facing increased lending requirements.

Unless there were contingencies for a $700 billion dollar government lending bailout written into their contract two years ago, no bank is going to have the audacity (ie, steel balls) to come back and start renegotiating terms at this point.

Bobcat · Post by **Bobcat** » Sun Sep 21, 2008 1:38 am

Big E, The $700 billion bailout is exactly why a lender would change the financing. Similar to a mortgage situation, instead of putting down $10 Million to finance a $100 Million it now requires $20Million or more not including the level of personal guarantees and other collateral to back the note. It’s not uncommon (especially in today’s lending environment) to hear of banks calling the loan for payment or renegotiating terms because things change … the price of steel, the price of the bank’s money, interest rates, a hotel inside the tower instead of all condos etc …

Big E · Post by **Big E** » Sun Sep 21, 2008 2:05 am

No way. Unless there is something specific in the contract for the original loan (which neither of us know, frankly) - or unless there's something in this legislation we haven't heard about yet - the bank has absolutely no recourse to change the terms to the borrower. Absolutely |expletive| zero.

They can come knocking and negotiating all they want, but if I have a contract in hand they better be locking their |expletive| doors before they try to change terms that I don't want changed. It's pretty black and white, really.

Erik · Post by **Erik** » Sun Sep 21, 2008 4:36 am

Big E wrote:
Erik wrote:Even if Wallstreet doesn't work out, the fact of the matter is there is legitimate interest to build in DTO.
Yeah, the housing market is in shambles and the federal government is bailing out lenders as fast as the sun can come up. Let's get to digging.

Well, go get a shovel.. I'm certainly not holding my breath on this one!

thenewguy · Post by **thenewguy** » Sun Sep 21, 2008 3:06 pm

So Adam...are we just making too big a deal of this? Do we have a real reason to worry or is this typical for a project this size, in a market our size? Care to lend your expertise?

adam186 · Post by **adam186** » Sun Sep 21, 2008 6:10 pm

I agree with everything that Bobcat has said. Well, worded.

Let me also add this, the sales center has been open for LESS than a year. One thing I have noticed lately is that the pricier buyers are more actively looking and reserving than the less pricier buyers. Don't let the 19 units number fool you. If they sell some bigger units near the top or start combining units it may only take 10 or so.

In my opinion they have too much money invested already in this project to back out at this point when they only need around 19 more units sold. That hotel deal means a lot to this project as well, it will probably be a game changer. And don't forget that they have 4 floors of retail space that can be leased to offset the need to presale some of those units. I think it's okay to get a little impatient with the process, but it may be too early to start needless speculation.

thenewguy · Post by **thenewguy** » Mon Sep 22, 2008 11:33 am

thanks! ...that's what i was hoping you'd say

S33 · Post by **S33** » Mon Sep 22, 2008 1:58 pm

Bobcat wrote:Big E, The $700 billion bailout is exactly why a lender would change the financing. Similar to a mortgage situation, instead of putting down $10 Million to finance a $100 Million it now requires $20Million or more not including the level of personal guarantees and other collateral to back the note. It’s not uncommon (especially in today’s lending environment) to hear of banks calling the loan for payment or renegotiating terms because things change … the price of steel, the price of the bank’s money, interest rates, a hotel inside the tower instead of all condos etc …

Don't forget the demise of the Dollar with that 700Bill bailout.

HskrFanMike · Post by **HskrFanMike** » Mon Sep 22, 2008 5:35 pm

From January 2006:

adam186 wrote:I'm interested in buying a unit here and sent them an email and this is what I got. Nothing really new here, but thought it was worth posting.

Adam-

Thank you for your inquiry of the exciting WallStreet Tower-Omaha condominium project that will change Omaha's skyline! A few highlights of the project are:

Rooftop pool
Every suite comes with 2 parking spaces
Climate controlled storage room per suite
Fitness facility
Movie theatre
Gourmet coffee lounge

Groundbreaking is expected spring 2006. The demolition process should take 10-12 months. Construction will begin immediately after that, with estimated completion of spring 2009. We are currently finalizing all details on the project and will be in contact with you. For you reference, attached is a flyer of the WallStreet Tower Omaha.

Thank you.

Just to remember what the original schedule was. http://eomahaforums.com/phpBB/viewtopic ... &start=930

Big E · Post by **Big E** » Mon Sep 22, 2008 5:49 pm

S33 wrote:
Bobcat wrote:Big E, The $700 billion bailout is exactly why a lender would change the financing. Similar to a mortgage situation, instead of putting down $10 Million to finance a $100 Million it now requires $20Million or more not including the level of personal guarantees and other collateral to back the note. It’s not uncommon (especially in today’s lending environment) to hear of banks calling the loan for payment or renegotiating terms because things change … the price of steel, the price of the bank’s money, interest rates, a hotel inside the tower instead of all condos etc …

Don't forget the demise of the Dollar with that 700Bill bailout.

My point in stating that a bank could not change the terms of the deal assumes there actually is a deal of some sort in place. If Townsend hadn't secured materials contracts or if the bank had put a contingency in the loan that ABC would be completed by XYZ, or any number of other things that were left up in the air by either party... well, that obviously changes the game and is their own fault for not having that stuff nailed down.

Everything is negotiable assuming both parties want to negotiate. But, if I have a contract and all my poop in group, I'll be damned if I'm renegotiating unless something comes along in my favor.

OmahaChef · Post by **OmahaChef** » Tue Sep 23, 2008 12:06 pm

I know we all wanted this tower to start rising from the ground the day after it was announced but I am not sure why everyone has become so gloom and doom about it. jLofts, Riverfront Place I, and other projects were all delayed due to the lending requirement that a certain percentage of their units be pre-sold, and this project has the same stipulation. Every developer is sure their project is the next great thing, and sets aggressive timetables, which end up not being met. Even non-condo projects get held up because the process of approvals takes longer than expected. And in 2006, I don;t think anyone expected the economy to be what it is today. The housing crisis has another year till it bottoms out, so I am sure they are not booking new unit sales on a weekly basis.

S33 · Post by **S33** » Tue Sep 23, 2008 6:36 pm

To end everyone's nervous speculation I will say this project is absolutely going to happen. The project is still 2 years out and The hotel will be a Hyatt Place. Forgive me if that was old info.

i can probably elaborate a bit more on that later next week.

OmahaJaysCU · Post by **OmahaJaysCU** » Tue Sep 23, 2008 7:27 pm

S33 wrote:To end everyone's nervous speculation I will say this project is absolutely going to happen. The project is still 2 years out and The hotel will be a Hyatt Place. Forgive me if that was old info.

i can probably elaborate a bit more on that later next week.

Excellent news! Cant wait until next week to hear about.