Development effect - Posted by Bert G

Real Estate Investing
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Posted by Randy -IL- on April 06, 1999 at 17:22:33:

Perhaps the University won’t develop the residential area but a private investor will?

There is a certain area in a nearby town where this sort of thing happened. About ten years ago this area with very high traffic count was just a regular neighborhood (some rentals, some owner occ.) Eventually, nearly all the houses along the busy street were rezoned for small business. Now the same landlords who were renting to college students now rent to lawyers, doctors, psychologists, etc for high visibility office space. It’s my guess that the rents went up too!

I think the higher traffic and close proximity to things like strip malls and other student draws will help raise the rent. At least thats true in my area.

Is it a big house? Maybe you can strike a deal with the athletic director at the school to house the hockey team. I know it sounds crazy but in college towns the students will pay (IMHO) outrageous rents to be nearer to the action. Imagine how much the team members would pay to be that close to the arena. True, they may break things but you have their deposits and the U. officials to look after their behavior!

Randy

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Development effect - Posted by Bert G

Posted by Bert G on April 06, 1999 at 10:07:09:

In you all’s experience, how does development affect ajacent property values?

Reason I’m asking. There’s a couple houses for sale(one SF and one duplex). In the next couple of years, The University is putting up a new $50mil hockey arena and a strip mall across the street. I know you flippers will probably say “so what”, but I’m thinking buy & hold. Any rentals within a mile of the University are hot. (And in case you’re wondering, no, the residentaial neighborhood won’t ever be bought for commercial development, the U owns several dozen acres of vacant land.)

Will the prospect of having Barnes & Noble in the neighborhood outhweigh the hassle of extra traffic?

BG