36 & Leavenworth Apartments (3612 Leavenworth )

[yman97]

New apartments proposed for 36th and Leavenworth next to the Kwik Shop. 24 one-bedroom units with 20 parking stalls. Parking access from the alley.

[Louie]

New apartments proposed for 36th and Leavenworth next to the Kwik Shop. 24 one-bedroom units with 20 parking stalls. Parking access from the alley.

Would that fit in between the Kwik Shop and the building on the NW corner of 37th and Leavenworth? Or does that building get taken down?

[yman97]

New apartments proposed for 36th and Leavenworth next to the Kwik Shop. 24 one-bedroom units with 20 parking stalls. Parking access from the alley.

Would that fit in between the Kwik Shop and the building on the NW corner of 37th and Leavenworth? Or does that building get taken down?

I believe it will be sandwiched between the gas station and other building.

[ita]

New apartments proposed for 36th and Leavenworth next to the Kwik Shop. 24 one-bedroom units with 20 parking stalls. Parking access from the alley.

Based on the site plan the 1 bed units are a decent size 800 sq. ft. Nice parking ratio less than 1:1. It's a fine design and decent density on a basically 1/4 acre lot. Leavenworth corridor keeps filling out.

[ita]

Dang, just reviewed the TIF docs and they are anticipating charging $1800-2200 for most of the units. 3 are planned to be rented at $1200.

https://planning.cityofomaha.org/images ... cation.pdf

[PWL73316]

Hey I hope they get it and the tenants are happy - but really weird pricing IMO. That said they are clearly hand-waving a lot, those room sizes that are listed as identical are definitely not identical on the floor plan, and there are 20 units on the plan but 24 on the application.

Sometimes I wish we would just reject stuff out of hand until they get their filing in order. I would not trust a developer who can't get a filing together to build and then lease my unit.

[halgy]

I am always surprised at how expensive new apartments are, and that there seems to be a market for them. Before I bought my condo a few years ago, I never spent more than $1200, and I wasn't living in bad buildings. Those prices are more than my mortgage by a considerable bit. Still, the only way to reduce rent is to build more.

That said, I'm starting to get warry of using TIF for developments like this. With the plan to charge rents like that, do they really need TIF to make the project profitable? Or is it just giving money to a project that would be built anyway? I understand the idea of funding a couple buildings to spur further development around the are, but if every new building gets TIF money, then is the city really getting the full benefit.

I don't mean to sound like a NIMBY, but surely a line has to be drawn somewhere eventually.

[TitosBuritoBarn]

I have to imagine that to receive TIF a developer needs to submit a proforma showing a break down of building costs and that the person approving applications knows a little something on the current cost of building materials.

[Brad]

I have to imagine that to receive TIF a developer needs to submit a proforma showing a break down of building costs and that the person approving applications knows a little something on the current cost of building materials.

Pages 11, 12, and 13:
https://planning.cityofomaha.org/images ... cation.pdf

[Dundeemaha]

Interesting update on this from the OWH:

Studio units are 595-square-feet with monthly rent set at $1,250. Three of the six studios will be rented on Vrbo for $140 per night.

One-bedroom units are 875-square-feet with monthly rent set at $1,795. Nine of the 18 one-bedroom units will be rented on Vrbo at $150 per night.

https://omaha.com/business/local/planne ... -top-story

[Garrett]

Well that sounds like a potentially miserable experience for the residents

[Linkin5]

Good luck finding people to pay those prices living in an Airbnb building. Hope this project goes miserable for the investors.

[NEDodger]

Really don’t get that. They have Staybridge Suites and other hotels for those types of situations. You’ve now made your regular residents live in a hotel.

[TitosBuritoBarn]

Landlords want in on that sweet sweet extra cleaning fee money from guests forgetting to put used towels in the washing machine.

[Mapguy]

So we are using TIF to fund VRBO rentals instead of housing?

This is why we need TIF reform. Im all for TIF being used to defray housing costs in blighted areas, but blackstone isnt blighted. Midtown as a whole isnt blighted. The housing they are building with these tax credits isnt affordable. TIF in midtown Omaha is a giant moneygrab where you put in a new sidewalk and trees and you get 1-5 million dollars in tax credits.

We need standards that makes this program benefit the renter and developer. Minimum apt sizes for the renter. Every housing TIF should be required to have 10% of its units set aside for moderate income renters.

The program should require more from the developer than saying "well I wouldnt build this apt without the money" its an incredibly easy bar to get over to get approved for TIF. Everything east of 72nd short of your DIY home renovations gets TIF assistance.

[GenX]

It also looks like they’re trying to encroach upon their neighbors’ property based upon a witness pole.

[jjjjhskr]

So we are using TIF to fund VRBO rentals instead of housing?

This is why we need TIF reform. Im all for TIF being used to defray housing costs in blighted areas, but blackstone isnt blighted. Midtown as a whole isnt blighted. The housing they are building with these tax credits isnt affordable. TIF in midtown Omaha is a giant moneygrab where you put in a new sidewalk and trees and you get 1-5 million dollars in tax credits.

We need standards that makes this program benefit the renter and developer. Minimum apt sizes for the renter. Every housing TIF should be required to have 10% of its units set aside for moderate income renters.

The program should require more from the developer than saying "well I wouldnt build this apt without the money" its an incredibly easy bar to get over to get approved for TIF. Everything east of 72nd short of your DIY home renovations gets TIF assistance.

We’ve done tiff for hotels and apartments so with the extremely loose interpretation of what tiff is for this “deserves” it as much as any other tiff recipient. (and yes it needs to be reformed).

[PWL73316]

My brother in Kansas City had an absolutely miserable time in his apartment building when they converted many units to Airbnb.

They absolutely should not get TIF for building a VRBO building and the city should be doing everything in its power to discourage development that is geared toward these pseudo-hotels.

[Louie]

Yeah, this is not even a blurred line, it's straight up wrong.

[PotatoeEatsFish]

These Air BnB shells are the Frankenstein’s monster of gentrifying. I’m not sure why so many millennials still support |expletive| like this. Normal people can’t afford to get an apartment but let’s build a bunch of units the Berkshire oldies can use once a year!

[ita]

While I am not justifying the too high rental rates or development strategy of making half of the units VRBO-only or arguing one way or the other regarding granting TIF, I do think there is a space/need for short term rentals. There are some occupations that take people to cities, like Omaha, for short periods of time. Travelling nurses is a popular one that's been on the rise. The residents' experience is likely to be poor with different people coming in and out, so I do wonder how the long term units fair. I do not think we have a short term rental problem yet in Omaha, this project may raise red flags as the first built for VRBO/Air BNB property we've seen.

[Mapguy]

VRBO/AirBnB was never meant to be for commercial property owners. It was developed for people with grandma suites and extra bedrooms to fill.

This is a hotel masquerading as an apt building for tax breaks and TIF funding.

Yes the city funds hotels and apts using TIF. But theyve never funded a hotel pretending to be an apt.

How is it in the City's best interest to subsidize this development? The locals arent getting apts to live in. The existing AirBnBs owned by locals now are now competing with a city subsidized AirBnB. Those local who are paying full freight on taxes unlike TIF properties that get a TIF check cut to them every year for 15 years.

[TitosBuritoBarn]

I have to imagine that to receive TIF a developer needs to submit a proforma showing a break down of building costs and that the person approving applications knows a little something on the current cost of building materials.

Pages 11, 12, and 13:
https://planning.cityofomaha.org/images ... cation.pdf

Ah yes. Having built a few artificial proformas for grad school, I guess it assumes the reviewer takes the developer at their word. That said IIRC you want to shoot for a 10% ROI so the 6% ROI with TIF is toward the lower end of the acceptable ROI range.

[Garrett]

Seeing the word pro forma crop up a lot suddenly is mildly triggering to me as I'm learning about them in a very dry real estate financing class.

[iamjacobm]

Seeing the word pro forma crop up a lot suddenly is mildly triggering to me as I'm learning about them in a very dry real estate financing class.

What I do basically every day can't be all that boring

[Garrett]

Seeing the word pro forma crop up a lot suddenly is mildly triggering to me as I'm learning about them in a very dry real estate financing class.

What I do basically every day can't be all that boring

Today I did an assignment in 1 hour that somehow involved 5 weeks of 2 hour classes to teach.

[nativeomahan]

My brother in Kansas City had an absolutely miserable time in his apartment building when they converted many units to Airbnb.

They absolutely should not get TIF for building a VRBO building and the city should be doing everything in its power to discourage development that is geared toward these pseudo-hotels.

I totally agree. Transient tenants do nothing positive for a neighborhood and often show little to no respect for the properties they rent, or the neighbors who have invested there. We deal with these issues regularly at our condo property, and the existing owners are now desiring to place a 15 day minimum for any vacation rentals.

[ita]

Approved by City Council for TIF yesterday. This guy did the neighboring Conrad (don't know if that's been mentioned). I know there's consternation about the use, but from a design standpoint, I am glad the garage is off an existing alley. No new driveways off Leavenworth. Also, sub-1:1 parking space per unit is nice to see in the urban core (this area still counts, right?).

[Athomsfere]

Approved by City Council for TIF yesterday. This guy did the neighboring Conrad (don't know if that's been mentioned). I know there's consternation about the use, but from a design standpoint, I am glad the garage is off an existing alley. No new driveways off Leavenworth. Also, sub-1:1 parking space per unit is nice to see in the urban core (this area still counts, right?).

Yes it does! Right near UNMC and really everything is close enough.

[iamjacobm]

This might be starting soon. Noticed the lot is fenced up.

[Louie]

Did this get approved as an AirBnB structure?

[Louie]

This did get approved. Decent amount of dirt work done this past week.

[iamjacobm]

https://bvh.com/project/36th-leavenworth/

"With its location two blocks east of the University of Nebraska Medical Center (UNMC), 36th & Leavenworth is being developed to utilize the concept of VRBO and Airbnb as one of its primary leasing tools for 75% of the building, while also focusing on the short-term, traveling medical professional. The development contains 28 units of which the seven units located on the top floor will utilize traditional leasing or possibly be for-sale condo units."

[iamjacobm]

Walls are going up here. Kind of cool construction site considering how tight the lot is.

[Brad]

Been a min since I have seen this project. Its mostly framed up.

1.

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