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Welcome! This blog tracks the real estate market in the Central Shenandoah Valley, featuring market data and analysis, an exploration of common buying and selling questions, and candid commentary on all things real estate.

If you are interested in discussing any of the topics on this blog, or the details of your specific real estate situation, call or e-mail me!

Downtown


Urban Exchange Construction Update
Construction Update - December 2008

Despite some rainy days in December (see above), construction is flying along at Urban Exchange --- framing for the fourth floor is being finished on the East Tower (apartments for rent), and the first floor is being framed on the West Tower (condos for sale).

Click here to see the latest construction photos of this exciting project in Downtown Harrisonburg, the future home of 196 condos, and 12,000 s.f. of retail space.
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Good News & Bad News: Downtown property values are on the rise
Courthouse

From the Daily News Record we learn that with the latest City assessment, the 173 parcels in the downtown business district had a median 25.22 percent increase in assessed value.

That's great news for downtown property owners, as the value of their properties have increased --- but not so great news for those same owners from a property tax perspective. 

And from a larger perspective, I think it's terrific news, as it shows that downtown Harrisonburg is continuing to be a great place to live, work, eat, shop, play and more.

Moving On UP at Urban Exchange!
Urban Exchange as of late November

The framing is continuing at a rapid pace at Urban Exchange in downtown Harrisonburg, future home of 196 condos, and 12,000 s.f. of retail spaceView more construction photos on the Urban Exchange web site.

Prasert, Taste of Thai, and a new downtown restaurant
Taste of Thai

Have you eaten at Taste of Thai

The owners will soon be opening a new restaurant downtown.

Learn more about Taste of Thai, Prasert, and more at "the state" a local blog that plans to interview many restaurant owners to provide an inside look at dining in Harrisonburg.

The One Million Twenty Fifth customer. So close!
Dave's Downtown Taverna

As mentioned last week, Dave's Downtown Taverna was coming up on a huge milestone --- having served 1,000,000 customers! 

I had lunch at Dave's this past Friday, and wouldn't you know, the one millionth customer was sitting just a few tables away.  IF ONLY I had come 30 minutes earlier!

Ah well --- congratulations to Dave's for over 14 years of great food and service in downtown Harrisonburg!

Hurry! Eat at Dave's Downtown Taverna this week!
Dave's Downtown Taverna

If you like eating at Dave's Downtown Taverna, you'll want to eat there this week!  (or maybe next week)

Dave's is getting very close to serving their one millionth customer, and when they do, that customer will receive a $500 gift certificate to Dave's Downtown Taverna.  Wow!

So whether you're going for their gyro, souvlaki, pizza or pasta, make sure to eat at Dave's this week!

Dave's is located in downtown Harrisonburg -- directions and a map are here.

Kai Degner elected to Harrisonburg City Council
Kai Degner - new member of Harrisonburg City Council

In local elections, Kai Deigner was elected to the City Council yesterday, along with Richard Baugh and Dave Wiens.  Kai won with the most (6,060) votes, followed by Richard (5,133) and Dave (4,663).

How did Kai do it?  What was his platform?

Of note, Kai is passionate about several real estate related issues, such as Smarth Growth, and Downtown Revitalization.

Kai on Smart Growth...
Harrisonburg is changing quickly, and Ibelieve we need to be proactive in making sure we preserve our openspace, control traffic, and build smartly. We should use the principlesof smart growth, "an urban planning and transportation theory that concentrates growth in the center of a city to avoid urban sprawl; and advocates compact, transit-oriented, walkable, bicycle-friendly land use, including neighborhood schools, streets that work for everyone, mixed-use development with a range of housing choices." (source)

Read more about smart growth...
Kai on Downtown Revitalization...
Downtown is the heart of Harrisonburg and I'm committed to continuingthe renaissance. Using the available retail, living, and office spacedowntown is a wonderful way to continue building on the momentum thatso many people, businesses, and organizations have contributed to inthe last decade. Harrisonburg Downtown Renaissance, with whom I workwith closely each week, is to be commended for their dedication.

Read more about Downtown Revitalization...
Kai's other issues (citizen education, open government, energy efficiency, city dog park) are also worth reading aboutCongrats to Kai --- I'm excited to see the things he will accomplish on City Council!

23 Guiding Values for the Revitalization of Downtown Harrisonburg
Below are 23 concepts for current (or future) property owners in downtown Harrisonburg to consider as they restore or revitalize downtown properties.

Downtown Rendering

These values are from the vision book entitled "urban values & vision for downtown harrisonburg" produced by Eugene Stoltzfus Architects for the City of Harrisonburg Downtown Renaissance.

  1. Build density within the City and maintain openness in the County.
  2. Use building position and massing to define urban place at a public scale.
  3. Use secondary building characteristics to tune-up how buildings relate to and form place at a public scale.
  4. Use urban accessory elements to tune-up the subtleties of access and definition of urban spaces.
  5. Use pedestrian-scale pavers for areas that are designed for and frequented by pedestrians.
  6. Use building transparency to relate inside to outside.
  7. Encourage mixed-use development throughout the city.
  8. Encourage sidewalk cafés.
  9. Develop a strategic parking plan.
  10. liminate large surface parking lots, and provide structured parking decks of 4 to 6 stories.
  11. Incorporate mixed-use into the sides of parking decks which front on streets.
  12. Encourage growth of trees in the city.
  13. Coordinate tree management and signage.
  14. Uncover and open up Black's Run where possible.
  15. Provide more park land in the downtown.
  16. Support individual low-tech transport such as walking, bicycles, and scooters.
  17. Develop good local public transport.
  18. Facilitate an appropriate balance between pedestrian and car movement.
  19. Engineer the downtown traffic plan to enhance downtown as a destination.
  20. Support green design.
  21. Cultivate the value that we are building a city for the long term.
  22. Inform private developers about the urban values the city considers important.
  23. Maintain in public places, visible displays of Harrisonburg's urban values.

Envision the Future of Downtown Harrisonburg!
Come discover the potential of downtown Harrisonburg TONIGHT (9/25/08), at 6:30 p.m. in the City Council chambers where Eugene Stolzfus Architects will be presenting exciting opportunities and possibilities for our historic downtown through a visionary look toward our future.  I hope to see you there! 

Get a preview: http://hburgnews.com/2008/09/24/vision-for-downtown/

Downtown Vision
This image is from a fascinating book compiled by Eugene Stolzfus Architects.  (25 MB)

New Urban Exchange renderings available!
Several new renderings of Urban Exchange are now available at www.LIVEUE.com.

Urban Exchange

Urban Exchange - Done Digging, Now Building UP!
After MANY weeks of digging down (down, down, down), the foundation for Urban Exchange is finally coming up out of the ground!

Urban Exchange - foundation coming up out of the ground!

For those of you who are not familiar with the project, Urban Exchange is a new construction project in downtown Harrisonburg to feature condos, apartments and retail space.

Check out more photos of the construction process here!

Digging Deep --- Harrisonburg's Downtown Condos
I am delighted to be a part of marketing and selling the Urban Exchange project --- an exciting new construction project in downtown Harrisonburg featuring retail space on the first floor and almost 200 apartments and condos

The photo below shows the excavation progress (these aren't just really deep footers, there will be two levels of underground covered parking).  See more photos of the progress by clicking here.

Urban Exchange - Excavation for Harrisonburg's Downtown Condos

Downtown Sewer & Gas Lines

Yesterday's issue of the Daily News Record included a letter to the editor from Dr. Bob Alotta commenting on the "local rock blasting" taking place at Urban Exchange -- or, as Dr. Alotta put it, "the new luxury condominiums on East Market Street."  (the site of the demolition is pictured below)

Urban Exchange demolition

Dr. Alotta (intentionally or unintentionally) makes a few false implications:

1.  Dr. Alotta states that "Since work began on this project, the water department had to replace three sections of sewer line in the middle of Newman Avenue..." 

I guess, technically, this is true, if you consider the start of Urban Exchange when the developers started making plans for the site . . . and if you don't assume (as many did) that the sewer line replacements were a result of the Urban Exchange project. 

In fact --- the sewer line replacements were not and are not being made to allow for the development of the Urban Exchange project. 

(Source: Marilyn, at Harrisonburg Water & Sewer, 540-434-9959)

2.  Dr. Alotta goes on to say that "A gas line was also ruptured." and that "...the city shouldn't have to absorb the cost of repairs..." that the builder should. 

I am not aware of a gas line rupturing --- but as the Urban Exchange demolition and site work has begun, a gas line did need to be relocated that traversed the Urban Exchange property.  However, despite Dr. Alotta's assertion to the contrary, the developers did have to pay for this work --- not the city! 

(Source: The developers, who had to pay for the work)

For photos of the Urban Exchange progress, visit http://www.ueharrisonburg.com/photos

Demolition Underway at Urban Exchange
Have you driven by Market Street, Mason Street or Water Street lately?  Here's what you have been missing --- lots of demolition on the Urban Exchange site . . .

Urban Exchange

Urban Exchange will be comprised of retail space, and four floors of condos and apartments.

Urban Exchange

To see more photos, visit: http://www.ueharrisonburg.com/photos.

Commercial Property Appreciation in Downtown Harrisonburg
I was recently asked about the rate at which commercial properties are appreciating (growing in value) in downtown Harrisonburg. 

Commercial Properties in Downtown Harrisonburg

Getting to an answer took quite a bit of data collection and analysis, but here's what I have compiled . . .

Methodology
Properties meeting the criteria below were considered in this study, which resulted in a data set of 145 properties:
  • B-1 zoning (downtown central business district)
  • Current commercial use categorization
  • Property improvements of $50,000 or greater

Point-to-point Sales Analysis
A point-to-point sales analysis was completed of all properties for which two historical sales prices and dates were available, where the sale dates were at least two years apart.  This resulted in a data set of 8 properties:
  • Appreciation per year ranged from 7% to 26%.
  • Average appreciation per year was 16%.

Five-Year Comparison of Assessed Values
The 2003 assessed value and 2008 assessed value were compared for each of the 145 properties.
  • Appreciation per year ranged from 1% to 56%.
  • Average appreciation per year was 12%.

NOTE: The 12% per year increase in assessed values includes a number of properties purchased and rehabbed by investors (which, in some cases, caused major increases in assessed values).  So, added value by investors is part of the 12% (not just perceived market appreciation by the assessor).


Condos Are Coming To Downtown Harrisonburg!
Urban Exchange, an exciting new mixed-use development, will be built with frontage on East Market Street and Mason Street --- within walking distance to downtown Harrisonburg and JMU campus.

Urban Exchange

The six-story structure will be comprised of (196) 1, 2 and 3 bedroom condos / apartments, as well as approximately 12,000 s.f. of retail space -- to house tenants such as a coffee shop, restaurant, and other retail operations.

These brand new, upscale units will be available both for sale or for lease. Amenities will include on-site parking, free internet and phone service, a state-of the-art fitness center, public space and an outdoor courtyard.

Demolition on the existing structures will begin this month, and the entire project will be complete by Summer 2009.

For more information about Urban Exchange, visit http://www.ueharrisonburg.com.

Harrisonburg Lures Downtown Development
Harrisonburg is putting financial incentives in place to encourage development in downtown Harrisonburg. According to the Daily News Record (DNR) on November 14, 2007, City Council is considering extending tax break incentives to developers who are building new structures downtown. Here's the math, as I see it, per the article....

A developer invests $10M in constructing a new building to get eight year waiver of tax assessments. If the assessed value were also $10M, the total waived taxes would be $472,000 ($10M / 100 * .59 * 8). That comes out at a nearly 5% savings over 8 years --- not bad!

This new proposal would be similar to the city's existing program for renovating downtown buildings. These financial incentives led to the re-development of the City Exchange building (now apartments and a restaurant). Per the DNR, "Real estate developer Barry Kelley said the historic building incentives were critical to his projects, including the renovation of the City Exchange building into apartments and a restaurant."

City Exchange building


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