Hue Units Turning Into Rentals?
After the Hue condo building at the corner of Dawson and Hargett in Downtown Raleigh closed a few weeks ago, there was a lot of speculation about what was next all of the unsold units. The N&O reports today that CityView, the developer, has turned over the building to iStar Financial, the lender, to avoid foreclosure. The report also states that there has been interest in converting the Hue into rental units.
Three years ago, CityView borrowed $36 million from iStar to build the 208-unit Hue, the largest condo project ever attempted in downtown Raleigh. CityView’s decision to hand over the property was widely expected as the market soured and Hue was no longer worth what it cost to build.
“The debt amount exceeds the value of the property as a viable condominium project,” said Jim Anthony, CEO of Anthony & Co., a Raleigh real estate services company.
Anthony said he expectsiStar to quickly sell the property. He has heard of several groups of investors that are putting together offers to buy Hue and convert it into rental units.
Read More
Get Raleigh Updates
-
hackles10
06/10 12:16 PM
I think they will fill up quickly whenever they convert them to rentals. With Campbell law students, nc state grad students/upper classman, and young professionals that want to rent in the downtown grid this would be a great place to live. I am looking forward to what 500 more residents will do for the warehouse district area!
-
corey3rd
06/10 01:05 PM
would make sense for Campbell to buy the building at a discount - use half of it for the law students and keep a couple places open for guest quarters. Then they can rent out the lowest and highest floors at a higher rate to non-students.
-
Carver
06/10 01:40 PM
Oh boy! Soar Market or over priced condos for what you were really paying for? Probably a mix of both.
-
josh
06/10 03:35 PM
If you look at places like Oberlin Court and 712 Tucker who are charging $1,000 to around $1,200 for really small 1 bedroom apartments, think how much the Hue will charge. I spent about 6 months looking for and at apartments downtown and had trouble finding anything nice that the rent was not through the roof.
My hope is that if they turn the Hue into rentals they will drive the rental price for living downtown down to something much more reasonable.
-
Phil
06/10 07:09 PM
Whatever they do, I hope they repaint the exterior.
-
King D-Bag
06/10 10:01 PM
I think the key to attracting residents would be to make it remiscent of the Battle of Hue. Vietnam Was-retro is big this year.
-
Jeff
06/10 10:59 PM
i’d move there in a hot minute if they’re reasonably priced rentals. i might even move there if they are oberline court/712 tucker prices… expensive downtown condos don’t make sense for raleigh right now. upscale, decent-priced apartments do.
-
RaleighRob
06/11 09:22 AM
Well common sense is prevailing. Heck, Hue just looks more like an apartment building than a high-end condo, really.
.
I agree with Josh above—between Tucker and Oberlin Court, we don’t need any more over-priced rentals near downtown. Hopefully Hue will be more reasonable. -
arturo
06/11 12:32 PM
@josh - oberlin one br apts go for around $750 for the small ones. they used to be in the $1000 range though. the price drop is probably why that complex resembles a neverending frat party lately.
-
Rostel
06/15 10:22 PM
I am sick of hearing people complain about the aesthetics of the Hue. If it were built and looked exactly like oberlin court, you would complain about it looking too plain and like something you would see off Wade avenue. Boo hoo. Look. Its different its colorful, we dont have anything like it anywhere else in Raleigh and Ive never seen anything like it. If I had a million dollars, I would bet it and say that in 50 years we will look back and treasure its architecture. We will say that it is Raleigh’s finest example of (whatever name architectural style they come up with for this style in 50 years) and it should never be torn down. Plus, it brings diversity in architecture in that are and I think its cool.
-
TonyB
06/15 11:09 PM
Rostel, I will bet in 2 years the buildings exterior paint is toned down. No one argues Raleigh has not had anything like it. But at the end of the day you have to have a marketable product that attracts renters… or buyers if it ever comes to that again. We’ve learned a lot about our city from the Hue’s failure.
-
Noah
06/16 10:42 AM
Yeah bad timing for hue. The places look great though. Wonder what the rental price is going to have to be to make ends meet for iStar.
-
Rostel
06/16 09:19 PM
Tony B
If its an apartment building, nobody will care what it looks like on the outside. In an apartment building, all that matters is the location and the look of the unit on the inside. If it were an actual house, that would be different. -
notsobright
06/24 12:53 AM
@arturo
The rental rates at Oberlin have never been in the $700’s since it opened in 2005 the prices have been in excess of $895, only dipping below $850 once in it’s history. And the $850-895 is for a very small unit in the corners with not much light, trust me I know! The two bedrooms start around $1,200 and go up to $2,000. It’s a nice building, too bad during my time as a resident here, I’ve seen it go from a beautifully manicured well run luxury condo community into a backwoods trailer park. I still pay for the location which I love and alas, it’s my decision and one that will keep as long as I don’t have to interact with the kids or poor excuse for an office.
Share Your Thoughts
Commenting is not available in this channel entry.