Thursday, January 6, 2005

The new year means new beginnings — and if you’re currently renting or outgrowing your current living situation, it also might mean the perfect time to buy or sell a home. While the past few years have boasted record-breaking real estate industry statistics, industry experts tell us that 2005 will be another great year for real estate. Although interest rates will most likely rise a few points, the increase will be gradual and won’t significantly impact the market, reports Inman News.

Of course, a strong finish to 2004 also means a positive start for the New Year. Economic conditions across the United States — as well as at home in central Ohio — improved in late 2004 and consequently pave the way for continued optimism in 2005.

Take a look at the following examples of this economic upswing and why you should seriously consider buying or selling a home in 2005:

Ñ RIS Media reports that the Conference Board’s Consumer Confidence Index, which decreased in mid-2004, rebounded in December. Based on a boost in economic expansion and job growth, 24.4 percent of consumers generally view current conditions as good, up from 23.2 percent in November.

Ñ Consumers also view the job market as improving, with 19.4 percent (an increase from 17.1 percent in November) claiming jobs are “plentiful,” RIS Media states in a recent article. In addition, 17.6 percent (up from 16.2 percent) expect more jobs to become available in the coming year.

Ñ According to Inman News, central Ohio homes sales in November rose to 1,875, the highest number ever reported for November home sales and 17.6 percent above the 2003 home sales number. Through November 2004, 24,812 homes were sold in central Ohio, which is 9.7 percent over last year’s number. Condo sales also increased in November. Clearly, these healthy home sales ultimately mean a plentiful market for buyers.

Ñ In addition, Inman News reports the average November home price of $171,588 jumped 4 percent over last year’s number, based on a report by the Columbus Board of Realtors’ Multiple Listing Service. If you’re looking to sell your home in 2005, higher home prices translate into additional equity.

Overall, home sales remain strong for central Ohio as we start fresh in 2005, and based on economic improvements nationwide, consumers should only see conditions improving in the New Year. If you think 2005 will be your year to buy or sell, remember that your Realtor is armed with the tools and knowledge to guarantee you can capitalize on these prime housing market conditions.

Spectrum spending $11M on third project

By Brian R. Ball
Business First of Columbus

A building that once housed a shoe factory will become the latest downtown Columbus condo conversion by the developers behind the nearby Connextions and Eclextion lofts condominiums.

William Shelby and Jack Hoopes, principals of Spectrum Properties Inc., plan to transform the six-story building at 78 E. Chestnut St. into 48 condos. The residences, many of which would be priced under $265,000, could be completed by spring 2006 after a $9 million renovation.

Spectrum bought the 86,000-square-foot building Dec. 27 for $1.9 million from Nationwide Mutual Insurance Co.

Shelby likes the building’s location. Though Chestnut Street isn’t heavily traveled, he said, the building’s location near North Third Street puts it at a “gateway” to downtown.

“The nice thing is, you have tons of support services along Nationwide Boulevard,” he said. “And it’s within walking distance to Capitol Square, the Arena District and the Short North.”

The project also is less than three blocks from the developers’ first downtown condo conversion, the Connextions Lofts at 104 N. Third St., and their most recent project, the Eclextion Lofts at 221 N. Front St.

It’s also around the corner from JDS Cos.’ Sixty East Spring project, an apartment and condo complex on East Spring between Third and North High streets.

Hoopes expects the Chestnut project to complement Eclextion Lofts, which has 55 units mostly priced between $165,000 and $225,000, though some sell for more than $275,000.

“We don’t have anything at Eclextion between $225,000 and $275,000,” Hoopes said. “We’re hoping this project fills that void.”

Spectrum picked Mary Raysa and Helen Nilsson of HER Realtors, marketers of Connextions and Eclextion Lofts, to sell the Chestnut condos.
Extended history

Huntington National Bank is providing a $7.56 million loan to redevelop of the Chestnut building, which was built between 1910 and 1920.

Developer Robert J. Weiler, whose family once owned the property, said the building once was a shoe factory but has been used for offices in recent years.

Abel Corp., a tire producer, had its corporate offices in the building in the mid-1950s, when Weiler joined his father’s real estate company. At the same time, slipper producer R.G. Barry Corp., now based in Pickerington, had its headquarters and a sewing operation in the building.

The Weilers’ involvement with the property ended in the 1970s.

An affiliate of Columbus developer Taggart Marryott Reardon owned the property for much of the 1980s. Documents also show the lender to the affiliate took control of the property at a sheriff’s sale in November 1991 after bidding $3.3 million. The lender sold the property in 1994 for $2 million to an affiliate of Dublin-based Stavroff Venture Corp., which leased the property to state and federal agencies.

Nationwide bought the building in December 1999 for $5 million. Terry Mathews and Scott Pickett of CB Richard Ellis marketed the property last year for Nationwide.

Spectrum’s acquisition includes access to 65 parking spots at a neighboring Nationwide parking garage. The developer also has several parking spots in a two-story annex to the property, as well as a two-car garage planned for a 2,000-square-foot, ground-floor condo.

Shelby said the building should be more easily redeveloped than the Eclextion and Connextions properties. The Chestnut structure has a sprinkler system and better electrical system than the other properties, which should mean less interior demolition. Shelby said the plywood floors likely will need reinforced with a layer of concrete.

Beyond that, specific plans for the project remain in flux.

“We have a lot to do,” Shelby said.
© 2005 Business First of Columbus