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The five-story Proctor Station development will soon begin to rise in Tacoma's Proctor Business District. The project will include 154 apartments and several ground-floor retail spaces. RUSHCOMPANIESBCRA
Proctor Station, a five-story, 154-unit apartment and retail building once criticized by neighbors as too large for the Proctor Business District, will soon begin construction.
Demolition is nearly complete on the site, said Devin Page, Rush Companies vice president of construction. Rush is the buildings principal developer. Excavation of the site will begin the week after Independence Day, he said.
The $20 million development, the largest in the history of Gig Harbors Rush, is due to be completed in late 2015. The building will include studio, one and two bedroom units built over a two-level garage. Ground-floor spaces will be available for retailers to lease.
The building site, adjacent to Mason Middle School, had been occupied by a small strip mall and three houses. The developers allowed the Tacoma Fire Department to conduct fire training exercises in the vacant buildings before demolition was completed.
The plans for Proctor Station encountered opposition from some neighboring homeowners when Rush sought to vacate an alley that bisected the property. Those neighbors complained the building at five stories was too large for the neighborhood business district where existing structures are a maximum of two stories.
A hearings examiner ruled the plans were in compliance with Tacomas zoning codes provided the developers built the structure in a way that would allow fire and garbage trucks access to the back side of the building through a ground-level corridor. The Proctor Business District is one of several neighborhood business districts within the city that the City Council had previously approved rules allowing higher and denser development.
Former City Councilman Bill Evans, a Proctor businessman and one of the co-developers of the project, contended the additional population that the building will bring to the business district merchants more traffic from new residents who live within walking distance of the district shops.
Some nearby residents also complained that the building would increase traffic congestion in the neighborhood and create parking problems in the business district. The developers countered that the building would include parking for residents plus creating more street parking for merchants.
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Construction on a five-story, 154-unit apartment in Proctor Business District beginning soon
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A closely held Shanghai developer has suspended construction at a property project due to a lack of funds, according to two government officials familiar with the matter.
Construction at Shanghai Yuehe Real Estate Co.s mixed-use project, including residential, office and retail space, in the city was halted this month and the project was frozen by a court, according to the people, who asked not to be identified because they arent authorized to speak publicly about the matter. Shanghai Pudong Development Bank Co. (600000), a medium-sized Chinese bank, loaned about 240 million yuan ($39 million) to the 220,000 square meter (2.4 million square foot) development in suburban Jiading district, they said.
There will be more developers having troubles as the property downturn prolongs, said Duan Feiqin, a Shenzhen-based property analyst at China Merchants Securities Co., in a phone interview today. Many Chinese cities face oversupply of those mixed-use property projects amid the e-commerce boom, while a lot of developers, especially those small ones, are not capable of doing such developments.
Yuehe is the latest example of Chinese developers facing pressure as the nations slowing property market weighs on the growth of the worlds second-largest economy. Moodys Investors Service in May revised its credit outlook for Chinese developers to negative from stable, citing a slowdown in home- sales growth as liquidity weakens and inventories rise.
Home prices in Shanghai decreased 0.3 percent in May from April, the first decline in two years, according to the National Bureau of Statistics. New home supply in the city rose 16 percent in May on a monthly base, while sales fell 22 percent, according to SouFun Holdings Ltd., the nations biggest real estate website.
Premier Li Keqiang has sought to rein in credit expansion, particularly in the off-balance sheet shadow-banking industry, by tightening lending and curbing real-estate price speculation. He must balance such steps with efforts to meet a 7.5 percent economic growth target, after 7.7 percent expansion in the previous two years, which was the slowest since 1999.
Pudong Bank loaned more than 200 million yuan to Yuehe and has taken steps to preserve assets, the lender said in an e-mail statement to Bloomberg News queries yesterday. Collateral for the loan is adequate and valid, the bank said. Two phone calls to Yuehe went unanswered.
In March, Zhejiang Xingrun Real Estate Co., a closely held developer in a city near Shanghai, became insolvent with 3.5 billion yuan of debt. Its residential projects have been halted and authorities have detained its largest shareholder and his son, according to the citys government.
While the central bank last month called on the nations biggest lenders to accelerate the granting of mortgages, the government has refrained from broad-based easing of property restrictions imposed over the last four years to rein in prices.
Home sales fell 11 percent last month from a year earlier, the statistics bureau reported earlier this month, and private data also signaled the housing market is cooling.
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Shanghai Developer Said to Suspend Project on Funding Shortage
Work is underway on a long-stalled project in West Hollywood on the site of the former Movietown Plaza shopping center.
The residential and retail complex being built at 7300 Santa Monica Blvd. is one of several in the pipeline in the eastern blocks of West Hollywood.
Virginia real estate investment trust AvalonBay Communities Inc. is developing the 3-acre former Movietown Plaza lot at Santa Monica and Poinsettia Place with 370 apartments, a grocery store, restaurants and shops.
Trader Joes, a fixture for many years at the now-demolished Movietown mall, has agreed to return as the grocery tenant when the new project is completed in early 2016. The future complex will be called Avalon West Hollywood.
AvalonBay declined to put a value on the new development, but in a document filed with the Securities and Exchange Commission at the end of last year the company put the expected cost at more than $152 million.
AvalonBay picked up the project after a previous developer was unable to complete it.
First proposed in 2006 by Casden Properties, the project was approved by the West Hollywood City Council in 2010 only to fall victim to the economic downturn.
Casdens plans called for a mix of residences, senior affordable units, and retail space accented by multiple landscaped courtyards in a design that included two 10-story structures on the southern end of the site.
When AvalonBay Communities took over the development in 2012, it redesigned the project and reduced the maximum height to seven stories. The company also brought the West Hollywood Community Housing Corp. in as its partner for the 77 affordable housing units.
Avalon West Hollywood was designed by Irvine architecture firm MVE & Partners.
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Construction underway at Movietown Plaza site in West Hollywood