Tyvek homewrap flaps over the unfinished wooden beams of the , as a sign proclaims "Now Leasing." Another sign entices the first 20 renters with free Taco Bell for a year, a tie-in with the fast-food chain that will occupy the mixed-use development鈥檚 first floor.
Right now, though, that first floor is just a large concrete atrium. Like four other luxury apartment complexes near The Ohio State University, this six-story development at North High and 8th Avenue is set to open next fall.
Local developers are building it--will students actually come?
For junior Kiersten Ahrens, who鈥檚 still searching for housing for next year, the answer is a definitive "no."
鈥淚 would love to live them. They鈥檙e in great locations," Ahrens says. "But it鈥檚 just so expensive, it鈥檚 not even worth it.鈥�
Indeed, rents for the swanky complexes can top $1,500 for a one-bedroom. Managers like Tom Heilman, with Hometeam properties, still think the market is there.
鈥淟et鈥檚 just say they鈥檙e $1,000 beds when the market鈥檚 used to $500 a bed, but you鈥檙e getting High Street locations and views, you鈥檙e getting amenities, you鈥檙e getting granite countertops, flat screen TVs, low utilities, safety, workout areas, and all the other amenities," he says. "And it鈥檚 just a fun experience for students that may are gonna experience this for a year or two and the parents are more than happy to do that.鈥�
Other towers plan to offer things like movie theaters and 24-hour doormen. Still, occupancy rates for Hometeam鈥檚 two new properties on Lane Avenue - Wilson Place and The Point - are just now reaching 50 percent for next year. Another developer, Edwards Communities Development Co., reports similar numbers for a tower under construction at 15th and High.
Heilman says they鈥檝e had to offer discounts for the first year in an effort to lure students, but he鈥檚 confident the market will stabilize when students can actually tour the complexes.
鈥淭hey鈥檒l meet their budgets. They鈥檒l be fine. Everybody鈥檚 gonna be happy. University鈥檚 growing, so there will be more demand than less in the next 5 years," Heilman says. "But everything鈥檚 short term - people look at things like, 鈥極h what鈥檚 going to happen here, what鈥檚 going to happen there?' And I think, you have to look, and it鈥檚 hard to look, a little bit longer term.鈥�
Heilman says once they鈥檙e built, the new luxury units will only make up about 5 percent of the entire campus housing market.
Wayne Garland, president of Buckeye Real Estate, has been in the business for nearly 40 years. He says the shift toward luxury student housing comes in the midst of the most competitive market he鈥檚 ever seen at Ohio State.
鈥淲ell, I wouldn鈥檛 say I鈥檓 not worried about losing any business, but I鈥檇 say we鈥檙e primed to compete very well,鈥� he says.
Of the 1,000 or so apartments Buckeye Real Estate owns, only 10 need to be filled for the coming school year. Garland says that means he doesn鈥檛 plan to follow in Hometeam鈥檚 footsteps and build luxury apartments any time soon.
鈥淣o, that鈥檚 not our model. I鈥檓 not going to leave our model," Garland says. "We鈥檙e going to be at a price point, in general, that鈥檚 significantly lower than those properties. And we won鈥檛 have the workout facilities or pools or theaters. But we鈥檙e going to give you an apartment that has everything you need.鈥�
That鈥檚 a sentiment echoed by student Kiersten Ahrens. Her current place is rented through InnTown apartments, and falls under the $600 cap she and her parents agreed on.
鈥淭his place has everything I need," Ahrens says. "And yeah, it鈥檇 be nice to have a fitness center and a pool and stuff, but they literally say all the time, like, 鈥榊ou鈥檙e in college, you need the college experience, you don鈥檛 need to be living like that when you鈥檙e in college, you need to save up and do that later on.'"
Still, developers are betting that enough college students will forgo that classic college experience and fill the thousand-plus beds they鈥檙e adding to the Ohio State housing market.
