Hue Building Closed - Zero Units Sold

smitty
05/28 12:13 AM

Maybe they can tear it down and build a new police station?

DLGuerra
05/28 02:50 AM

What if they convert the building into rental units?

canada drugs online
05/28 07:19 AM

I think it is because of its location, wide roads, and structural design.

canada drugs online
05/28 07:19 AM

I think it is because of its location, wide roads, and structural design.
http://www.northwestpharmacy.com/

crankasaurus
05/28 08:33 AM

i feel so justified right now. i was so superpsyched for the hue to be built because they were advertised so hard as the “affordable” condos for downtown, built to bring in young singles and no unit was supposed to be higher than like, 150k. i was in touch with the realtors before completion to get one the units and was constantly reassured of the lower prices. then the pricelists came out and the *smallest* units, barely 600SF were over 150k. i’m not sure what happened there, but no effing way. i backed out quick. i don’t know if it was false advertising or if their prices got screwed during the build, but they basically… lied!

can anyone back me up here? I’m sure my numbers are off, its been a while, but the gist is the same.

rl
05/28 09:16 AM

TURN IT INTO APTS thats what they should have done. no one right now wants to buy an expensive condo in dt raleigh.

Jake
05/28 09:18 AM

Should be noted that just the residential portion of the building is on hiatus - retail space on the ground level is still open, according to the article.

I considered the Hue when looking to relocate last year (for the same reason crankasaurus mentioned), but one issue that scared many away was the shoddy design/construction of the units (compared to competitors’ units). Truth be told, I never took the time to see the Hue’s in person, so I can’t really speak to it, but maybe someone here has.

I think rental is the logical option from here, at least until they can get their ducks in a row.

kg
05/28 09:54 AM

what a pos.

Chris
05/28 09:55 AM

Maybe the next owners will get rid of that horrid blue and yellow paint job. It looks like a clown hotel.

RaleighRob
05/28 09:59 AM

crankasaurus is right—-they kept repeating over and over that they were going to be “affordable” and then when finished they posted ridiculously-high prices. 

They need to wise up and do what the 712 Tucker folks did—Realize what the downtown market is really like, and convert the building to rental apartments.  There’s LOTS of demand for that still…..that is, of course, if the rent is reasonable!

Jason
05/28 10:05 AM

Wow, I guess you either love it or hate it. Crankasaurus takes it to a whole new level, though and feels like he/she is owed a larger home at a lower price and that everyone lied.

I’m really bummed about this because the price-point being offered seemed fair. I think they’d be great rentals, though.

CtrlBurn
05/28 10:13 AM

I toured the Hue just to see what it was like.  The units were nice, but they were a little small for the asking prices.

CJT
05/28 10:20 AM

How about they just do some extreme price slashing and cut their loses.  Downtown Raleigh doesn’t need any more rental units.

SMW
05/28 10:46 AM

CJT - How do you figure that downtown does not need more rental units?

Besides 712 Tucker, what downtown rental spaces are available?

The Hue makes the most sense to be converted into apartments and attract the 25-35 young prof (like myself) who wants to live downtown, but realizes condos are way overpriced.

Jon
05/28 11:03 AM

I toured the Hue on the downtown home tour last year and thought the units we saw were actually pretty nicely done, though small. And I do agree, the price for the sqft in Raleigh was not gonna fly. We ain’t in Atlanta!

CJT
05/28 11:03 AM

http://www.godowntownraleigh.com/at-home/residential-real-estate/apartments (And those don’t include duplexes, and single family homes rented regularly).  That seems like plenty to me.

If you’re renting central downtown, then for the most part you’re going to be paying as much (and usually more) as you would for a decent starter home inside or near Raleigh.  I agree that condos are overpriced downtown, but renting instead of buying isn’t wielding the power of a young professional.  It seems more like giving into the fad, especially given the affordability of real estate here in Raleigh.

RaleighRob
05/28 11:18 AM

^Have to disagree, CJT.  There’s definitely room for more.
.
For starters, several places on that list are limited to people below a certain income (Gateway Park, Prairie Bldg, Heritage Park, etc etc).
.
Secondly, some are restricted to seniors (Sir Walter).
.
Thirdly, a few of those are really small buildings with like a dozen or less units (Bailey Bldg, City Market, etc). 
.
Finally, the larger market-rate apartments on that list are on the peripheral of downtown, and none on that list except for Capital Apartments are actually in the central downtown area.  Hue, if turned into apartments, would be.  And they would be very desirable.  (Not to mention the proximity to Campbell Law.)

blzebub
05/28 11:27 AM

I also toured these last year, and thought that they were kinda nice.  However, the price-point was wrong.  The sales agents were a little slick too.

jonn
05/28 11:30 AM

I hear they are going to convert it into a new, top of the line homeless shelter!

SMW
05/28 11:33 AM

Hi CLT,

I currently own a 1500 squarefoot town home in one of the developments off western Glenwood near the Carmax. It is far too much space for a married couple with no kids, and we would like to enjoy the growing downtown atmosphere, without caring for a yard (travel too much), and don’t need much space.

Could we afford a “decent” starter home for at/near the same price of a downtown apartment? Yes. Is that the lifestyle we want or prefer? No.

We are younger and don’t know if we will be in Raleigh for more than 3-5 years, so the investment to buy may or may not pay off.

Its all about individual tastes + preferences, and where one is in their life.

CJT
05/28 11:59 AM

RaleighRob, Good point about Campbell Law.
_________

SMW, I thought there were enough apartments inside the belt line, perhaps there are not.  There are a load of condominiums, single family homes, and duplexes inside the belt line (and plenty of them vacant).  More apartments downtown will encourage a very different kind of growth I think.  Buildings will be built cheaper and uglier else the apartments will be too expensive.  If the Hue investors are able to rent these units at decent rates then they can probably afford to sell them at prices young professionals like you and I can afford (and not be stretched by a oversized mortgage).
___

Also, there are plenty of local investors with enough resources to buy up units for the purpose of renting (like the aforementioned condos, and homes), perhaps this is a good compromise.  But with this, the developers will have to encourage these purchases and home buyers would also have to be amenable to renting in their building.  I would prefer this over lots of new apartment buildings because it encourages others’ property values, gives a local investor a chance to pull profit, and gives you a place to live.  But again, there are a lot of those types of units already available.
___

It’s definitely about individual tastes & preferences.  And I can see the value in renting, especially when you’re unsure of where you’ll be in the near future.

rl
05/28 12:25 PM

yo whoever said there is already too many apts in downtown must be looking at charlotte or atlanta’s dt not raleigh. all those that were mentioned are not in the core of dt and most are project housing.

GentleReader
05/28 01:13 PM

Wonder if the developers could turn it into an extended stay hotel? Anyone know what the market is for that?

chickenfoot
05/28 01:14 PM

Buying a condo at the Hue would have been foolish.  Renting could be plausible and maybe even fun!  The building will turn into rentals one way or the other.  The buidlings owner may be able to sucker people into buying with some crazy perks, but those people will never be able to resell because the exterior makes too many peoples eyes bleed… and they in turn will end up renting thier unsellable unit out.

TonyB
05/28 01:52 PM

I always liked Park Devereux.  I thought it was a classy looking building.  The Dawson came along and I was not really feeling the facade but it was slowly starting to grow on me.  Then the Hue comes along and it trainwrecks the entire block. Those 3 buildings look so awkward together.  I’ve taped newspapers to my passenger window so I don’t accidentally look over when I drive down Dawson Street

DPK
05/28 02:08 PM

This is what happens when a California developer thinks they know a market on the opposite side of the country.

The same thing happened to the Warehouse District a few years ago with that New York developer.  I miss The Hurricane bar to this day.  :(

Raleigh’s downtown is not your typical downtown.  You can’t treat it the same way you would California or New York.

gd
05/28 02:19 PM

dpk: you mean Raleigh’s dotwntown is bland and doesn’t like anything other than more bland stuff.

ct
05/28 02:26 PM

Price per square foot ranged from $200 (small units) to $260 (large units). That’s about double the prevailing prices outside downtown. How many people—particularly coming out of a sharp recession—are willing to pay a 100% premium to live downtown? Some, but not large numbers. So, the marketing had better be very crisp and precise.

smitty
05/28 02:27 PM

Whatever happened to the Bloomsbury?  Does anybody live there?

miamiblue
05/28 02:36 PM

People want to live downtown, but obtaining financing for a condo is different than getting financing for a house right now. From what I understand, Hue had interested buyers, but the devlopers didn’t have their own finances in order and strung people along until those people gave up and found other places. Now prospective buyers have a much harder time getting a mortgage to finance a unit in a building that doesn’t have a certain percentage of units sold. It’s a big vicious circle.

I think part of the problem was timing. Hue was built when the market was high and construction was expensive. It was ready for occupancy when the financial market was going into the dumps and lenders were no longer throwing mortgages at anyone with a pulse. I’d guess many in Hue’s target market probably don’t have a 20% down payment, so it makes getting financing that much more difficult.

The other part of the problem is that I just don’t think downtown Raleigh is at a point yet where a 600 sq ft studio condo is in demand. People would likely rent a unit like that, but not buy to occupy.

The remedy, unless the developer enjoys losing money, is clearly to turn Hue into rentals for now until things stabilize. Sometime in the future they can always convert back to condos, offering the current tenants first option to buy.

A variety of housing options is essential in downtown Raleigh. Currently, the only other option in the downtown core area that would be comparable to Hue (should it become apartments) is 712 Tucker, and they seem to be doing well despite having premium rental rates.

ct
05/28 02:53 PM

Miamiblue’s analysis makes sense. Besides young professionals, a substantial piece of the downtown market is empty nesters looking for a place to live in their 50s, 60, and 70s. Empty nesters are usually selling houses with appreciated value in the suburbs, or they have come into inheritance money, or they have accumulated wealth in their careers. Whatever the source, they can pay cash for a downtown condo. Clearly the marketing campaign for Hue did not appeal to them. Without these buyers, Hue was in a very difficult position when the recession hit and the mortgage process froze solid.

Reilly1
05/28 02:56 PM

Whoa New Raleigh let’s get a little more info before spreading false rumors…
HUE starts at 653sq ft at a negotiable $140,000. This includes all stainless appliances w/d pool gym and two parking spaces.  20 units were under contract with several more units having reservations.  HUE has only been available for purchase since late Feb.  Many people were interested and it’s a great project for Raleigh.

bustabozo
05/28 03:02 PM

i see a lot of ppl here complaining about pricepoints of the DT condos….if you know the facts, then you’ll know most 1BRs (Park Dev, 222, Paramount, 444, West, etc etc) are around $200K or more.

Hue’s 1BR was around $170K which was already the cheapest. If yall still think this is high, then what do you think is reasonable for a 1BR condo in DT Raleigh? $100K?

Please get real. I see people paying $200K for townhomes along Glenwood and Brier Creek. And those places don’t even compare to DT Raleigh.

jbee
05/28 03:18 PM

Does anyone know what the monthly HOA fee was going to be for the Hue? Different condo buildings downtown have quite a big difference in monthly HOA fees that can break some peoples budget. I know it played a part for me when I decided which building to buy in.

ct
05/28 03:28 PM

Sure, there are $200/sq-ft townhomes and condos being bought in selected locales. But for every one of those, there are probably ten $100/sq-ft townhomes and condos being bought in mundane locales. The ‘selected locales’ game is a tough one and a risky one, because a potentially large number of projects are competiting for a relatively small number of buyers.

I remember when Colony Square condos in Atlanta were selling for a pittance. 35 years later, those condos have appreciated about 20X for an annual return of 9%. Not bad.

Rob
05/28 03:31 PM

I tried to buy a unit, and I had one reserved. It was very badly managed. They would never call back or let me know when I could move in. They never even let people into the building to see actual units for a long time. I’m sure there were many willing to buy, but they just kept pulling this stuff. It’s in a great location and will take off when someone else takes over.

smitty
05/28 07:21 PM

LOL at Reilly1.  Yes, a great project for Raleigh indeed.  A big ugly empty building that will be empty until further notice.

VaNC
05/28 09:32 PM

I agree about the need for more rentals downtown.  Have talked to several campbell students that say they are hard to find.  Many are renting in 712 or ....the place over the Borough, but wish there were more nice, downtown rentals.

King D-Bag
05/28 11:26 PM

“Whatever happened to the Bloomsbury?  Does anybody live there?”

It’s impossible to get a unit there. Everyone is fighting over the exclusive view of the prison yard. My biggest complaint about my current living situation is that my porch doesn’t afford a view of prisoners being shanked.

DPK
05/28 11:41 PM

@gd: No, downtown Raleigh is not bland.  It is what you make of it.  Cry me a river.

gd
05/29 02:07 AM

I’ll be the first to say I enjoy living here - no river needed.  The thing is, theres nothing special about Raleigh.  Theres no unique building.  Theres nothing that you MUST see downtown.  Raleigh is average as hell visually.  Thats what I meant by bland.  At least The Hue stands out.

gd
05/29 02:11 AM

Let me take back -we do have a few buildings, but generally, Raleigh looks like it was built by Pulte Homes.

gd's dad
05/29 07:16 AM

gd, get off that computer and stop shitting on everyone’s dreams and aspirations of growing this town into something great.  And clean your room.

viewwatcher
05/29 04:46 PM

To be more humorous than curious (yet curious just the same)REILLY1, do you work for Hue?

Also I never considered that buying at Hue would have been a mistake because of the coloring, but I can agree with the statement- not to say a unit at the Hue would be a BAD purchase but the color is a lot.

GD, I see your point. Raleigh is bland. (what good does it do to NOT know where you are???)I wonder, when are people going to have a more open mind and let Raleigh expand (I know there are other and bigger issues besides the residents’ openmind-ness) or will it always be a sub-metro?

bcb
05/31 10:58 AM

I recall the N&O article mentioning only 4 units in Bloomsbury have sold.  Anyone want to speculate as to when that project faces a similar demise?  I say 5 at most months.

dwntwndwllr
05/31 11:32 PM

To be honest I’m not sure that, other than lacking sales, Hue and Bloomsbury can be compared to each other.  Hue was developed by speculators from outside the state and Bloomsbury by a localite with the best of intentions.  From a quality standpoint while Bloomsbury might not exactly fit in within its context it is a well built building, with attention to detail, they didn’t skimp and I have to admire the developer for following through on their vision.  Hue is the exact opposite.  In both cases I hope they’re able to eventually succeed.  Downtown needs them both to do so, for different reasons.

smitty
06/01 12:53 AM

What are you talking about dwntwndwllr?  These buildings are absolute fucking disasters!  They have no tenants.  They are EMPTY.  Apparently nobody wants to pay $150k+ cash for a 600sqft dorm room or $400k+ for an ugly condo overlooking the backyard of Central Prison.  This will never change.  The intelligent citizens of Raleigh have roundly rejected both of these incursions.  Bruckel is no saint, these people are charlatans.  http://www.raleighpublicrecord.org/news/2010/02/03/luxury-condo-development-in-trouble/

TonyB
06/01 09:56 AM

Smitty, Small square footage and a prison in your backyard are things people living in an urban environment tolerate and at some level appreciate.  The real estate melt down was triggered more by rural cluster mcmansions that went out of favor along with their subprime mortgages.  A lot of quality urban infill projects just got caught up in the snowball effect for no fault of their own.  I would put Bloomsbury in this category.  When the market returns, you will see the “intelligent citizens of Raleigh” fill up these buildings and hopefully everybody will have learned from their mistakes.

ct
06/01 10:32 AM

The subprime mortgage collapse hit all sectors of the market, including Hue. Don’t tie subprime problems to rich people or suburban sprawl. Most properties foreclosed or seriously underpaid since 2008 are at the low end of the market. Most of them are OTB simply because relatively few properties ITB are within reach of low end buyers.

john
06/01 07:13 PM

I love Raleigh I swear I do, but this city needs to get a grip on better planning and become more innovative. I’m trying to toughen it out here but I can’t take the citizens lack of progressive attitudes. This is why Charlotte will always be 10 steps ahead of us.

ct
06/01 07:32 PM

Charlotte may be ten steps behind us in another 30 years. The reason why Charlotte is what it is has nothing to do with progressive government; for 22 consecutive years, Charlotte had a Republican mayor. Charlotte’s development is a direct consequence of the growth of First Union/Wachovia and NCNB/NationsBank/BofA, which were wealthy, influential, ambitious, and (most importantly) downtown-centric. Raleigh has no counterpart.

But now that bank power is moving from Charlotte to New York (BofA) and San Francisco (Wells Fargo), nobody can predict the trajectory of Charlotte development.

WILLNCSU
06/01 11:28 PM

Exactly.  Development mostly is and should be driven by industry, not government(stupid liberals).  I actually like the layout of the triangle better than most places.  The cities surround the park where lots of people work.  Where in most cities people drive in from the suburbs to the center of cities to work, here lots of people leave the cities to drive into RTP to work.  This way when you get home you’re where the action is.  Really, who needs a ton of bars and restaurants where you work.  I love my giant townhouse right outside the belt line and only have a 10 min drive downtown, 20 to work, and 10 to football/hockey/bball even with traffic.  I got 2500 sqft with a two car garage for the same cost of 1000 downtown with one spot.

semiDave
06/06 07:19 PM

@ the dumbasses bitching about Pricing :

The HUE has the SAME layout as 222, price out the 1bedroom at HUE v/s the same layout at 222 and you save a little over 100k.  So those of you saying they were ” too pricey ” get the hell out of downtown, cheap pricks.

I was moving into the HUE had a condo and everything they know they had a few units sold, hell I owned one on the 7th floor.  However until they ‘sold’ enough condos they could not take anyones money, or allow us to live there.  I believe they sold about half of what they needed to do in order to open the building.

The ONLY thing they killed this place was delays.  I had a move in date of Aug 09, so did about 30 other people…when it was pushed back 3 times for no reason people went elsewhere. Walking into my condo on the 7th floor (last level to be done) and seeing my lights, water, washer/dryer ect in my condo back in Sept but them telling me I can not move in killed it for me. I even tried 222 but they could not beat or even come close to my deal I had at the HUE.  Sooo I like VERY few others, waited it out.. the start of the year I gave up and rented a place.  I know 3 people who moved to 222 and paid 60-110k MORE just because they were sick of wating….I think I will just rent for a year and see what condos are open when my lease is up.

semiDave
06/06 07:29 PM

Also, Bloomsbury has about 10-24 cards there nightly.. so I am going to say more than a few homes there have been sold.  Too old school for my taste but all in all a very nice building, and it does have some great views of the city.

BTW us who live downtown, enjoy the ‘city live’ if you want your lame ass yards and kids riding their bikes into your cars that’s fine…..but i’ll keep my trains, buses, and the random bum or two.

ct
06/06 07:35 PM

What a wonderful statement in support of diversity that was.