iStar partnership with AvalonBay. Let’s discuss apartment demand!

Long Beach Herald: READ iStar says it needs tax break. Will not move forward with Superblock project without PILOT

“The apartments, expected to rent for $2,275 to $3,575, will be marketed to young professionals and empty-nesters. A local official with knowledge of the project, who declined to be identified, said that iStar recently brought on a developing partner, AvalonBay Communities, to invest in the project. [LINK]

Towers_ThumbnailHead over to the Long Beach Herald and read the full article , but let’s talk about that AvalonBay partnership. I was discussing this with some folks earlier today and we concluded with the following: The fact that Avalon is now involved tells us there really is a demand for these types of apartments at these prices.

As of today, The Avalon Towers (10 W. Broadway  & Edwards Blvd) advertises these rents [LINK]:Screen Shot 2015-05-22 at 11.35.41 AMI don’t know the exact rent breakdown for iStar, but based on available info, it could look something like this:

1 bedroom…. from $2,275
2 bedroom…. to $3575

I cannot seem to figure out how many total units Avalon Towers has 109 units. If you look on their website, it appears there are 11 available:

(****as of May 22nd, 2015 [LINK])
Studio  – 0 available
1 bedroom – 7 available
2 bedroom – 3 available
3 bedroom – 1 available

I’m just putting this our there to see if the demand for 522 (1) & (2) bedroom apartments is viable or not. What do you folks think? And does anybody know how many units the Avalon Towers has total? (update: 109 units as per zillow)

35 Replies to “iStar partnership with AvalonBay. Let’s discuss apartment demand!”

  1. I am really counting on Denise Ford to stop this nonsense. As a resident and leader, Denise is totally opposed to Pilot. We can only hope this I-Star project does not happen.

  2. I think 10% open apts is not good. prices are over the top for the area. You need to know if they are investor owned vacancies? how quickly are they filled? I again say it’s not good for Hospital,cuts to Fire Dept./emergency squads..will cause water and sewer issues…and on and on.. the current tax payers (mostly hard working families) having to pick up the blunt of taxes that they should be paying.. and the city council is composed of mostly real estate people yeah they want the deal to line their pockets…LB BS again and again ..people just give in…they pay and complain I should have..later..

  3. well 10%, but many of the units have renovations going on with the windows. I’m not sure if that effects anything, but there will always be some vacant units in larges buildings like this. I guess the real why to judge is how much movement happens: Will these 11 units rent right away, only to have a different batch of 11 vacant next week?

  4. Almost everything in your post is not correct, Avalon never has that many units vacant , it’s only since they gave their tenants a high rent increase . It had nothing to do with the renovation .
    Long B each does not call for the rents that they have there. Or in many of the other building near by, I have a close friend that just vacated there who less born and raised in Long Beach and just moved tthe North Shore,

  5. Denise has been the only legislator speaking against the PILOT program as well as the initial request for the variance from the Zoning Board.
    Unless this was sarcasm, sometimes difficult to grasp on a blog.

  6. Amazing isn’t it – every level of the Long Beach Democrat machine clears the way for this monstrosity, and they want to blame Denise Ford for it, when she is the only elected official in LB trying to stop it.

  7. According to iStar and their economic team rents will “average” $2,910 for a one bedroom and $3,998 for a two bedroom

  8. Denise is 100% in favor of PILOTs she said so in Newsday and when the meeting occurs she will be in favor of this one. I guarrantee you will NOT hear her say she is against the project or the PILOT when she gets up at the Nassau IDA meeting.

  9. Avalon wants in because they know better than anyone, that the demand for oceanfront luxury apartments, 50 minutes from Manhattan. outstrips the supply by a huge margin. They are pros. That’s why they have been able to raise their rents with ease. They will do the same once the i Star building’s first leases begin to expire.
    There is no reason for them to get a tax break, other than they want to maximize their profits at our expense. They are hard nosed business people. The Great Neck project is built on a petroleum tank storage site. That’s why the Mayor of Great Neck went along with the PILOT program. He said so. The Long Beach project will be built facing the ocean. There is no comparison.
    Contrary to the naysayers, these two buildings make sense. Long Beach’s future depends on new apartment building construction, and the people and business they attract..

    Say no to the tax breaks. They are a taxpayer rip off.

  10. Liz,

    You are mistaken. Everything she says after “I’m not against PILOTs” is completely worthless. She’s trying to play both sides. At the IDA meeting she will NOT say she is against the project or the PILOT. I guarantee it. I repeat Denise Ford will NOT clearly state that she is against the project or the PILOT.

    You are being played.

  11. If “demand for oceanfront apartments 50 minutes from Manhattan” were so strong, the Rockaways would be like Miami Beach right now. Guess what, it’s a slum except for Arverne by the Sea, which was specifically NOT built as high density/high rise rental units for obvious reasons – because we know what they became in the rest of the Rockaways.

  12. If the buildings are so necessary, why do they have to keep lying to people to get them built?

    Examples: we have the $. It will be a tax boost to the region. It won’t be a strain on resources. It will bring in 450 jobs.

    I’m sure I’m leaving some out.

  13. Good points being made, but the obvious question is this…..if the apartments are so badly needed, then why the need for a tax break? Shouldn’t market conditions provide the kind of supply and demand pricing that makes this a profitable project? Sounds like the story keeps changing when all along this has been the plan. The developer (Pilevsky) has been a bad actor for LB for a long time. Is there a point in time when the City Council says NO??? Or does the Dem Leader see more cash to grab? This is a smelly deal for this city.

  14. I just don’t understand this issue AT ALL! Why isn’t each member of our elected officials speaking out against this deal?!!

    Sure, use our water, roads, bridges, Boardwalk, schools, recreation center, beaches, garbage pick up, snow removal, fire and police, buses, sewers, etc. ….and thet are exempt from paying taxes!!! And will make a huge profit! Are our elected officials morons? Why would we ever agree to this?

  15. Richard Bad man, oooops Boodman, correctly points out that the future of LB depends on future apartment building construction.

    This can be viewed as either a good thing or a bad thing.

    Certainly the erection of these two buildings will open the door for more of the same as will the granting or denying of the PILOT application.

    If more apartment buildings of an ever higher and higher elevation is viewed as a good thing then so be it.

    If the granting of tax exemptions is viewed as a good thing then so be it.

    I’m not setting forth my opinion on either of these issues but am merely pointing out that whatever the outcome there will be precedents set that will determine the future of LB for many, many years to come.

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