I was just in Downtown Graham earlier today and it kind of made me jealous.
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Not sure the best thread for SkyHouse news, but the building just hit the market. TBJ has been told they are looking to get ~$71m. It was bought in 2016 for $103m.
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Just read the reviews from residents of this building on google and you will see why.
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Wow. That’s quite a crash in value. I wonder how much of that is due to the building and its condition, vs the land it sits on.
It seems there is an impression on here that the neighborhood has gone downhill, and that would affect the value of the land.
As for the building, part of it is just expected depreciation (stuff wears out, the schedule for residential rentals is 27.5 years) but things like construction defects or a lack of routine maintenance that lead to issues beyond what you’d expect for an 11 year old building could also be a factor.
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Current tax value is $76M+ ($21M+ land and $55M building. At 262,500 SF that is $290/SF. This valuation compares favorably with the $71M asking price.
I lived there for 6 years through three eras of property management firms. What began in 2018 as a high-end hotel experience (near concierge level front desk) declined to perfunctory (third-party security firm). Maintenance also declined with Kane siphoning off the talent to properties they owned.
Elevators are minimal in count and aging. There has been multi-floor water damage from infrastructure issues.
Stayed there despite issues for what was arguably one of the best views in the City. Had a high-floor SE corner unit with floor-to-ceiling glass which afforded 270-degree views down Martin to the Knightdale ridge and down Blount to the Garner ridge. Spectacular. But eventually yet another multi-floor flooding event drove us out.
At the time there were few high-rise residential options. But there are many now with more on the way. And they are all new construction.
I believe it is the building more than the neighborhood that has devalued the property.
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MAN! Who on Earth would’ve thought that a copy/paste designed building that was slapped up in a couple of months and has been repeated in cities all over the country would be low quality and decline this rapidly???
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Interesting. Perhaps they are pricing in the cost of repairs and renovation. Which, to be sure, 11 years is much earlier than expected for a major renovation.
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Naturally occurring affordable housing?
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I’m pretty sure Skyhouse is still charging exorbitant prices for their allegedly dogshit units 
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Skyhouse is 94% leased which is pretty good given the market conditions. It is being offered at 60% OFF replacement cost according to this article.
https://www.connectcre.com/stories/raleigh-highrise-hits-the-market/
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I’ve never been in the building, but I’ve always thought that the exterior looked like 
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“Rental rates start at $1,257 and go up to $2,354. Unit sizes range from 546 to 1,508 square feet.”
I haven’t been inside in probably 8 years, but depending on the conditions that doesn’t seem too crazy with everything considering.
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So that means that’s $1,257 for a studio apartment (read: one medium sized room with a bathroom) in the sleepy city of Raleigh, North Carolina.
Sorry, but in no universe is that not insane to me.
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Those rates are lower than they were a couple of years ago when studios were closer to $1500 and 2-bedroom (1000 SF) units were over $2000. Not sure where the 3-bedroom units (1500 SF) were at that time.
Looks like they have made a more realistic rate reduction which is probably why their occupation rate is 94%.
They also run a stealth airbnb operation although residents are prohibited from doing so. Not sure of the extent or how that is reflected in the occupancy rate.
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It’s almost half the cost of living in the same sized unit at the Maeve. Granted all of this is hard to fathom it being significantly more than my mortgage.
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So: insane vs psychotic. Sorry, just never going to get on board with rental rates in a city like ours that exceed actual, big 24hr-cities with cool shit to do any given day, like Philly or Portland.
I think it’s all nuts, but Philly spent several years shrinking in population while we’ve been growing. We have traditionally had less supply, and with increased demand comes increased prices.
For personal reference, that Maeve apartment is more than my mortgage and HOA. My house is 4x bigger with a fenced in yard for my dog, a community pool, landscaping, etc. 10 minutes from downtown and closer to Durham. Plus I have probably half a million in equity that appreciates every year. Living in a nice new apartment downtown appealed to me when I was late 20s but there wasn’t much then. I wouldn’t do that now if it was free. I’m too old and grumpy and lame.
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1300 to live in DTR would be a reasonable deal… for a 2BR.
For a 1BR it’s absurd but also very typical for everywhere in the Triangle. Rents are absurd for suburban units as well.
I can find these in Morrisville.
$1700 for all the disadvantages of urban and suburban living combined with planes flying over your head. The rental market is a cartel basically. That’s why rents are converging in all cities.
And the price for a single is only $100-200 less than a double in a lot of places. The anti-social tax is real.
Remember: that $1300/mo at Skyhouse is NOT for a 1-bedroom. Their base rent would be for a STUDIO. So literally just one room - total - with a small bathroom lmao.
In Raleigh, NC. Where there is zero useful public transit, nothing other than endless, overpriced bars open after 8PM, and a city government that is always 3-steps behind.
It’s insane, full stop.
It doesn’t get much better when looking outside of large buildings either. This is the cheapest place to rent in Glenwood south. 500 sq ft. $1,050 per month, zero amenities. I’d happily spend $200 per month more to get garage parking, gym, pool, outdoor space and its newer than this building. Rent is just stupid expensive.
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