Melissa Savenko's Richmond Real Estate Review

Real Estate Investment in the City of Richmond - The Too Typical Story These Days

Back in May 2011 I reported on news from Inman News that real estate investors would be major drivers in the real estate market for the foreseeable future, particularly in the foreclosure and short sale worlds.

That has certainly proved to be true. Experienced investors have been in the buying mode for the last several years, even if their personal investment models have radically altered. For example, I have several investor clients who went from flipping houses into "buy and hold" rental property. My condominium developers stopped doing condos and started doing apartments. The driver for all these changes: available financing for flipping and condominium development went "poof!" overnight. But money for income-producing investment properties, or developing apartments, was and is still available and even cheap.

The very interesting phenomenon that I observed beginning mid- to late last year, which seems to be gaining traction: people who have never held investment real estate are trying to get into the game. It makes perfect sense, when you realize over a ten (10) year time horizon real estate has outperformed the major stock and bond indices by substantial amounts - 40%+ return on investment compared to 15% or even negative returns. [NOTE: These statistics are according to the annual update program I saw at the Greater Richmond Association of Commercial Real Estate ("GRACRE") on Tuesday.] There are also special tax advantages to real estate, versus other types of capital investments.

Here is the typical "new investor" call I am getting more and more:

BUYER: "I'd like to start buying some investment real estate."

ME: "Great! What are you looking for, and what are your financing sources? What type of return on investment are you expecting?"

BUYER: "I want to buy a duplex or triplex in the Fan. I've talked to my banker, and (s)he says I'm qualified to buy. It needs to make money right away."

ME (Thinking, not saying): "Get in line. Everybody and their brother is looking for investment real estate in the Fan. If you don't have cash and you can't move quickly, your chances are somewhere between slim and none. And, P.S., by the way, Fan duplexes are almost NEVER going to cash flow. They are too expensive. They are great investments if you fit one of three (3) scenarios: (1) you have a ton of money you need and/or want to put down; (2) you are buying it as an owner-occupant, with the rental on one unit to offset your own mortgage expense; or (3) if you want to convert the property back to a single family residence."

ME (Saying): "Well, I think you are going to face a lot of competition from some really well-financed players in that submarket. Also, any investment real estate in the Fan is going to cost you well upwards of $300,000. That's a lot of money at risk for your first investment property. Why don't we consider single-family homes in [BLANK] neighborhoods, which I really think are going to have a continued upward trajectory in value and marketability."

BUYER (Oftentimes now huffy): Well, no, that's not what I want. I want a Fan multifamily property. My brother's sister's aunt's father-in-law bought a Fan duplex in pristine condition for only $150,000 just two weeks ago. And my lender says I will qualify for 80% financing up on properties up to $400,000.

Sigh. What's a girl to do? I've got colleagues who say it is not our job to protect people from themselves. If people want to make a stupid investment, you let 'em. Sell them the property, take your commission, and don't look back. The problem is, I feel like in many ways protecting people from themselves is exactly my job, and if I don't advise a client that I think is contemplating an....let's say "imprudent" investment....I am shirking my fiduciary duty.

What's the right answer?

Here's where I am right now: For any of you folks who want to start slow and small building an investment portfolio in the City of Richmond, give me a call. I'd love to help. For anyone who has buckets of cash and needs somewhere to put it, and likes City investment real estate, call me too. And for those people who fit into Categories 1, 2 and 3 for Fan or Area 10 multifamily properties, I'd love to help you also. New investors who sound like my fake Buyer above, I'm not sure I can help you buy, but I sure as heck have a bunch of properties I'd love to sell you. [:)]

The Real Estate News in Today's Richmond Times-Dispatch

I've read today's Business section of the Richmond Times-Dispatch, and there are several interesting articles about real estate. In no particular order of importance:

1. According to a report released by HOME, Housing Opportunities Made Equal, foreclosures in Virginia slowed considerably in 2011, but foreclosures + underwater houses, houses worth less than the total amount owed, will continue to be a drag on the housing market specifically, particularly on prices, and the economic recovery generally.

2. A Hanover couple will have their "For Sale" property featured on the Today show this upcoming Friday, February 24, 2012, at 9 a.m.

3. An Associated Press story on the National Association of Realtors' report on January 2012 home sales nationwide also supports the proposition that the housing market recovery isn't a Central Virginia phenomenon, but is occurring broadly across the U.S.

What are some of the takeaways, in my mind, from these stories?

• There is room for cautious optimism about the housing market, both nationally and locally.
• However, we still have long way to go.
• There will continue to be downward pressure on prices until the foreclosed and "shadow" inventory have worked their ways through the housing market.
• It continues to be a buyer's market, requiring sellers to take some extraordinary actions. Case in point, the Hanover couple, who not only have their home featured on a national show, but have moved out of the home and into a two bedroom apartment with three small children, perhaps to make their home easier to show and therefore sell.

An observation of my own: Certain areas of the City are already showing strong signs of recovery, with quick sales and multiple offers. Haven't seen those in a while! So be aware of that, buyers. Listen to your real estate agent if they advise you that you're trying to buy into one of those areas. Right now, for the areas I specialize in, that looks like parts of Area 10 (Fan, Museum District particularly) and almost all of Area 20 (West End of the City of Richmond).

Stay tuned, and keep your fingers crossed. A stronger housing market is good for everybody.

Richmond Public Schools Rezoning - What Do the Closures Mean?

Well, the City of Richmond is proposing to close three (3) elementary schools, and the proposals are generating all kinds of wailing and gnashing of teeth.  The three schools are Summer Hill, J.B. Fisher, and John B. Cary.  The only one I am going to talk about is Cary, because it is really the only one with which I am familiar.  And just to be clear, I have no dog in this fight, other than wanting all of the City elementary schools to be shining examples of excellence.  My daughter went to William E. Fox Elementary from Pre-K through Grade 5, and we had an AMAZING experience.  I can't say enough good things about that school.  In fact, Fox was one of the main reasons we moved to the Fan when we bought our first house in 1999.

John B. Cary ("JBC" or "Cary") serves the Byrd Park, Carillon, Carytown, and Museum District neighborhoods.  Apparently it is WAY under capacity, with only 210 students.  The more concerning statistic is that only 39% of the kids in the JBC zone actually attend JBC.  That means a lot of parents are either sending their children to out-of-zone schools with capacity - perhaps Mary Munford? - or sending their children to private school.

Michael Paul Williams wrote a column about Cary and its glory days as a magnet school.  I'm dating myself, but I remember how disappointed I was that I didn't get into Cary and my best friend, Kara, did.  My neighborhood school was Ginter Park, and that's where I went.

Cary is fairly close to both William Fox and Mary Munford.  I don't know much about Munford's enrollment levels, but it was my understanding that William Fox was at physical capacity.   So I'm not sure how Fox could absorb the JBC students.  Also, if given the option to attend William Fox, which consistently wins awards for excellence, you have to presume that more than the 39% of eligible neighborhood kids would sign up.  How would that be managed?

[NOTE:  According to the draft Study, Fox isn't anywhere near capacity.  That's odd.  I remember it being a big deal when my daughter was there, so much so that out-of-zone kids from the Museum District, who had regularly attended Fox rather than Cary, were no longer accepted unless they had an older sibling already at Fox.  It caused all kinds of hoo-ha.  I also thought there was some prohibition on Fox having trailers to house overflow students, maybe some sort of deal with the Fan District Association?  In any event, I really hope this doesn't mean that Richmond Public Schools doesn't consider Fox at capacity because they are advocating a substantially higher class size than what Fox's normal, uber-successful operations look like.  Does anyone know the answer to that?  Or is it just that attendance has dropped off significantly in the three (3) years since my daughter graduated?]

From a purely real estate perspective, Cary occupies a prime piece of real estate between Sheppard and the Downtown Expressway, adjacent to the City tennis courts.  Not only could the City save money from closing an unnecessary physical plant, but that property would be perfect for private redevelopment.  Could the City sell it?  For that matter, why don't they sell Maymont Elementary too? 

I agree with the commenters that object to fewer, bigger schools.   From a facilities standpoint, I am sure that makes more sense for the Richmond Public Schools system.  Fewer facilities = fewer costs.  But I do not think mega-schools are a good pedagogical approach.  Neighborhood schools should be the objective.   Oh, and P.S., by the way?  Those plans to put Grades K-2 at one school and Grades 3-5 at another, splitting current Fox kids by grade between Fox and Carver, that's  TERRIBLE idea.  Sucky-McSuckster.  Awful.  Kill it.  Immediately.

So...what happens when next to no one in the neighborhood is attending the neighborhood school?  I guess we will find out.  I predict they will split the Cary kids between Fox and Munford, although I have no idea how that will work from a pure physical capacity standpoint.  Stay tuned....

Ginter Place Condominiums and Other Similar Projects - How Do You Solve the Problem If You Have "Live," But Not "Work, Play?"

There was an article in the Richmond Times-Dispatch the other day about things looking up on the sales front at Ginter Place Condominiums.  For those of you not familiar with the project, it was a historic tax credit conversion - state credits only - of the old Richmond Memorial Hospital into sixty nine (69) luxury condominiums, marketed towards downsizing Baby Boomers who loved the Ginter Park and Bellevue neighborhoods but didn't want the huge house any more.

Well, for reasons that are not the developers' fault at all, the Ginter Place project has been languishing.  Only fifteen (15) units have been sold to date.  Reasons for that:

1.  It hit the market in October 2008.  The housing market was in the process of meltdown.  It was a scary, scary time.  No one was moving anywhere.

2.  Meanwhile, credit markets contracted, if not completely froze.  AND, in an almost death-blow to larger condominium projects, the FHA changed its financing rules for condominiums and would no longer provide FHA financing unless and until 51% of the units in a project had been sold.  So, if you've got 69 units to sell, you have to sell 35 units to buyers with cash or conventional financing (20% down or more) before later purchasers in the project are eligible for the most favorable financing product out there.  Well, most folks were conserving all the cash they could, because the general economic situation was so daggone scary.  And many folks didn't want to put 20% down for the exact same reason.

[BRIEF ASIDE ON WHY FHA FINANCING IS SO GOOD:  First, it has the lowest down payment requirement, only 3.5% of the purchase price of the property.  Second, it accepts the lowest credit score, 580-620 scores are eligible.  Lastly, it provides close to market rate interest rates for these buyers, almost as good conventional buyers with the best credit scores.  On the down side, you do have to pay for private mortgage insurance ("PMI") for five (5) years.]

3.  Even if you could find a cash or conventional buyer, a lot of them had a house to sell.  And they couldn't sell their house.

4.  Lots of people are reluctant to be the earliest adopters in a large-scale condominium project.  What happens if the other units don't sell?  This concern is magnified in a down market.

5.  With respect to Ginter Place, the neighborhood association had extracted a DEED RESTRICTION from the developers, prohibiting the use of the units as apartments.  That really tied the developers' hands when the market went south.  In the normal world, the developers would have rented out the unsold units to keep the project afloat, then sold the units when the market turned.  I find it pretty incredible that they didn't just let the bank take the entire thing back. 

So there are the market-based and project-based reasons Ginter Place has suffered in a completely awful real estate market.  But IMHO there has always been another issue with this project and several others - Monument Square at Willow Lawn Drive, Rockett's Landing right across the City line in Henrico on the river - that has made the sales even slower going in this market.  Here's my theory:  Baby Boomers buy condominiums for the "urban" experience.  They want to be able to walk places.  Or they at least don't want to have to get into a car for everything.  They want proximate access to products and services that take care of most, if not all, of their needs.

So I actually have a proposed solution.  Maybe folks will think it's goofy as all get out.  But this is my proposal for Ginter Place.  You aren't quite close enough to shops and restaurants and activities to achieve that walkability that makes the Fan/Museum District/Carytown so desirable.  Yes, you could walk to MacArthur and even Bellevue and the few shops and restaurants there, although it's not a short walk.  And you can hop across that wacky intersection of Hermitage and Westwood to make it to Kitchen 64.  But a walk to the Boulevard corridor isn't easy to do because there aren't any sidewalks, and you have to get past the No Mans Land under the interstate overpass on Boulevard. 

So.....how about running a trolley service for your residents?  It could run up and down the Boulevard corridor, from Ginter Place south to the Byrd Park tennis courts, with stops all along the Boulevard.  It would run north all the way down Lakeside, to the Lewis Ginter Botanical Garden.  People could hop off to go to a ball game, or to go to the Virginia Museum, or to walk through Carytown and shop and have dinner.  They could go to the Lakeside Farmers Market or have tea at Feathernesters.  Start slow, and run it at set times on the weekends.  See how it goes.  Maybe the City of Richmond could help subsidize it, if it's successful, and it could be opened up to anyone.  And you don't even have to rely on the City to make it happen.  Just call Buck Ward at Richmond Trolley Company.  Maybe two private enterprises could make this a win-win for both sides.

Maybe this is the worst idea in the world.  But as I look at the condominium projects over the last several years that have succeeded, and those that have had a difficult time, the idea of flipping the model comes back to me over and over.  If you don't have the work and play right there, figure out a way to make it there.  In other words, if it won't come to you, bring your people to it.   The idea was "if we build it, they will come," even without an additional retail and commercial component.  In a booming economy, with the hyperinflated buyers' market, maybe that made sense.  But in this world, it has turned out the buyers come if the promised new urbanist ideal - the "work, play" of the "live, work, play" mantra - exists in some form or can be seen coming in the not-too-distant future.  Cf. West Broad Village as a good example of that.

So, if you don't have "work, play" as part of your project, and it's not realistically close, make it realistically close.  Just a theory.  Thoughts and discussion would be greatly appreciated.

Real Estate Development - Interesting Happenings in Richmond a/k/a RVA

There is SO much going on in Richmond, it's hard to figure out where I want to start.  Here are just the biggies:

1.  INTERBAKE FOODS:  The Interbake Foods building has transferred to Rebkee Company.  Yet another state and federal historic tax credit conversion in the making.  Word on the street is it will be apartments - shocker - with a hoped-for retail component. I'm curious to see whether the apartments are VCU-focused, or marketed instead to young urban professionals.

2.  TAX CHANNEL BUILDING:  The Tax Channel building on Broad Street near DMV is under contract.  I'm not sure if that transaction has closed.  I haven't heard anything about what the plans are for the building, but underneath that hideous facade and minus the ugly rear addition, it's supposed to be pretty spectacular inside.  AND the refacing, etc. that was done back when, apparently with the intention of making it God-awful ugly, was specifically done in such a way as to make it easy to convert the building back to its original glory.

3.  BOULEVARD:  The City of Richmond Fleet Maintenance facility is moving.  Check out the recent Richmond Times-Dispatch article about it here.  Only five (5) years after Umesh Dalal, the City auditor, recommended it do so.  Oh, well, that $2.4M annual savings over five (5) years, that $12M, we don't really need that....But that the City of Richmond is slow-moving and borderline incompetent isn't really news.  The more significant implication of the Fleet Maintenance Facility move is it opens up almost that entire Boulevard parcel for redevelopment, including, one would hope, a new ball park for the Flying Squirrels.  Now, if we can just get the City School Board to blow up the monstrosity that is the Arthur Ashe Center, we'd have the final piece of the puzzle.  Plus the porn store is becoming a Mexican restaurant!  Yea!

4. CITY STADIUM:   Still no word on that "highest and best" use study that was supposed to be done for the City Stadium property.  Shocker.  My personal opinion is the site is perfect for mixed use development.  However, I also strongly believe the City owes it to us, the citizens, to do a competitive bid/request for proposals on that parcel.  In fact, weren't there supposed to be TWO (2) studies done on that parcel?  One was to explore "highest and best" use, one was to explore ways to maximize the property if it stayed a sports stadium.

5.  VCU/VUU APARTMENTS:  More apartments are planned for the Virginia Union area at Brook and Lombardy.  The Gilbane project in Carver has been approved with less density and less height.  [ASIDE TO GILBANE:  Please, please, PLEASE don't value engineer that building into some hideous nod to the industrial and Victorian architecture of the era. The renderings look OK.  But 8 1/2 Canal is AWFUL.  Don't do it again.  I'm begging.]  The apartments in the VCU/VUU area make sense, but apartments continue to go up all over Downtown and Shockoe Bottom.  In one of the next few posts, I'm going to try to count up the apartment units added east of Belvidere  in the last year or so, just for fun.

6.  FAN BUS BARN:  No word on plans for the Bus Barn located at Robinson and Cary in the Fan.  6+ acres of prime real estate in one of the most expensive areas of the City.  Why the radio silence?  Why isn't the City talking about potential plans for that parcel?  At least why aren't they throwing one of their "highest and best use" studies at the thing?

7.  3600 BROAD:  The big grey whale of a building on Broad at Hamilton, the former Chesapeake & Southern Railroad headquarters, is being converted to apartments.  This is also a historic tax credit renovation, using state and federal credits.  [ASIDE:  Is this tax credit thing becoming a sort of refrain?].  Apparently the building is considered a "contributing structure" in the Scotts Addition Historic District.  Hmmm......interesting. 

8.  CONDO INVENTORY:  The number of available condominiums in the City of Richmond is rapidly approaching undersupply.  The reason:  There have been NO condominiums developed since 2008.  Projects funded and in progress when the market crashed were completed, like Windsor Court.  But there was no financing for new projects, and therefore no new inventory in the pipeline - until now.  A high-end "luxury" condominium development called The Tiber is going up on Libbie Avenue near Grove.  I'm keeping my eye on it to see how it goes.  It's been my position for a long time that there is an under-supply of "luxury" condominiums available, even before the market crash, for the wave of down-sizing Baby Boomers.  And in my opinion, there is also a pretty specific formula for floor plan, size, amenities you must have to develop successful high-end condominium units.  Let's see if these folks first-to-market get it right.

This is only scratching the surface on what's going on in the real estate world here in Richmond. There are so many interesting things, such as the increasing number of out-of-town developers entering the market.  Some of those developers are entering the Richmond market with (IMO) really great plans, some with not just head-scratching plans, but "what the H-E-double hockey sticks are you THINKING?" plans.  I'm happy to name names, and we can all sit back and watch whether my predictions are correct or not.  But for now, it is back to the salt mines.  As always, I welcome your comments and/or suggestions for topics or otherwise.  Hasta la vista, baby.

Zillow Zucks AGAIN! - They Win, Consumers and Agents Lose

OK, this post will probably be of interest only to agents, and maybe I'll get feedback that I'm way off base, but I've got to vent.  AND I am really curious as to the opinion of other real estate professionals, and consumers too, for that matter.

Since 2010, I have been paying for Zillow's "Premier Agent" program.  What it means is I pay for the privilege of having my mug pop up on the right hand side of the screen when a consumer is looking at a property in the particular zip code I "own."  I pay for X% of ____ zip code, which means my contact information will be included one of the three agents in that list X% of the time. 

When I first purchased the Premier Agent program in 2010, it was a big deal for me, because the market was still slow and money, especially money spent on anything not absolutely required, was extremely tight.  But I know how many consumers start their home search on the Internet - over 85%, last statistics I heard - so I bit the bullet and paid some amount for 25% of 23220.  I think it was about $115/month, but I got a decent discount if I paid for a full year.  I told myself if I got ONE sale out of it, the Premiere Agent program would pay for itself.

The program has been extremely successful for me.  It has recently become MORE successful, because Zillow has added a Customer Review section, which allows clients to review you and hopefully say very nice things about you.  Presumably a consumer will chose to contact the agent with the highest rating to get additional information about the listing.  The benefit to the Premiere Agent:  You get the opportunity to capture that customer and hopefully convert them into a buyer client.  Because I have had success with Zillow's program, because it has been a good investment with positive return, I have purchased more coverage for the zip codes where I practice.  So I have coverage in 23220 (Area 10 - City), 23221 (Museum District, Near West End), 23223 (Church Hill, Montrose), and 23227 (Northside, mainly Bellevue). 

Here's the problem, in my opinion:  ANY AGENT can purchase ANY Zip Code.  So the agent the consumer sees in the right hand column, the agent the consumer contacts, might have absolutely zero experience in the geographic area where the property of interest is.  So what does that do for Zillow?  As agents figure out the power of Zillow's program to generate buyer leads, agents buy profitable zip codes.  Demand for profitable zip codes - areas where the real estate is expensive - increases.  The PRICE of those zip codes increases exponentially. 

I just got a call from my Zillow representative letting me know my 50% share of 23220 and 50% share of 23227  is "out of contract," meaning I am paying on month-to-month basis my "legacy pricing rate," which was $137/month.  Because of the "high demand" for this zip code and the LENGTHY waiting list of agents frothing at the mouth to buy it, my monthly payment will now be $576/month.  And, oh yes, by the way, we will no longer do one year contracts, only six (6) month contracts.  So of course they can jack up the rate yet again in six (6) months.

Needless to say, I'm p*ssed.  I've been a good customer, was one of the first to buy into the program when it was brand new, and I feel like I should be able to keep my legacy pricing, or at least get some sort of more graduated increase.  It's like now that the investment is FINALLY paying off, they increase the price 400%.  I'm stamping my foot and hollerin' "It's not FAIR!"  [To which my Dad would reply, "Who ever told you life was fair?"  But I digress.]

So I'm getting screwed, but you probably don't care about that.  But here's how this program screws consumers, which you should care about.  Agents with no experience in an area, but with deep pockets, will get in line for zip codes with the priciest real estate.  In Richmond, Virginia, 23220 is one of those zip codes, because of the Historic Fan District.  Rather than the about $170,000 median home price for a home in the Greater Richmond area, the median price for a home in the Fan is in the neighborhood of $625,000.  [NOTE:  That figure comes from an article in Style Weekly about the battle over the Fan House's downstairs bar].  It's a lot easier to make a living selling $600,000+ homes than it is selling $170,000+ homes.  Agents line up for that zip code, increasing the demand, increasing the price.  Very good for Zillow.

But how about the consumer who clicks on the agent who pops up 100% of the time when that consumer is reviewing  Fan listings?  Isn't it reasonable for that guy or gal potential buyer to expect the agent is an expert in that area in which the property of interest is located?  What if they are a suburban agent in Chesterfield County who doesn't know the first thing about historic property?  Or better yet, what if they are an agent in WILLIAMSBURG,  that doesn't even belong to the local MLS?  Both things have happened with me and my listings, and are going to happen more and more, as agents catch on to the power of the Premier Agent program.

So, what's the ultimate effect?

• Zillow gets richer;
• Agents pay more for access to zip codes and those buyer leads;
• Agents without any experience in a particular area, but with deep pockets, can and will buy the priciest zip codes; and
• Consumers end up with agents that have little to no experience in a particular area.

[NOTE:  Consumers should be doing their own due diligence on the agents they choose to work with, particularly when looking at an area or property type that requires specialized knowledge, like historic property, resort property, farms, to name a few.  But I am constantly surprised at how little research people do on the agents they choose.  Consumers should be asking how many listings in the area that agent has had, how many sales, how long they have worked there, etc.  But that is a topic for another day]. 

What do I think is the solution to the problem?  Well, it's not one Zillow will adopt, I will tell you that.  I think there should be some nexxus between the agent purchasing a zip code and the zip code.  What do I mean by that?  The agent should have sold a property there, listed a property there, have his or her office there, live there...I am sure there are other means to establish nexxus.  My poor account rep, Gus, who has graciously and patiently listened to me vent about how much Zillow SUCKS, said this would be "way too difficult" for Zillow to do.  Horse hockey.  They are running so many algorhithms with all the Zillow data they collect now, I am sure the agent zip code nexxus would be a piece o'cake.

What would the result be, in my opinion?

• Consumers would be better served by Zillow, which already has a host of data accuracy issues, by getting appropriately experienced agents;
• The artificially high demand for pricey zip codes would drop; and
• Agents in an area wouldn't have to pay such exorbitant pricing for the privilege of getting buyer leads off what was originally our own d*mn data [NOTE:  Again, topic for another day].

Yes, I know this is somewhat self-serving.  I want my zip codes, and I don't want to have to pay $576/month to have them!  But this goes to a more core issue for me.  I am continually frustrated with agents practicing in areas they have no d*mn business practicing.   I know what I know, and I know what I don't.  In the 6+ years I have been in real estate I have learned the hard way to stick to my knitting, to practice in the areas where I am knowledgeable and value-added, and to refer any other business outside of my comfort zone.  There are not many people, except possibly my broker and some other of his contemporaries, who can really truly claim to have expertise in ALL of the Greater Richmond metropolitan area these days.   But agents will tell you all day long they can sell anywhere.

Zillow is selling its data to the highest bidder, without regard to any link between that zip code, that agent and that agent's experience.  I'm sure my complaints aren't going to change that.   Free market, right?  But to sell a Richmond zip code to an agent that is not even in the same MLS is, I think, outrageous.  If Zillow really is a product for the consumer, don't they want the consumer to get the best possible service from a true local expert? 

All this and $0.25 still won't get you a cup of coffee.

 

A New Leaf for 2012 - Regular, But Shorter, Posts

I wasn't the most consistent of posters in 2011.  In fact, my last post was in November and it was restaurant recommendations for the Lincoln cast and crew.  My new leaf for this year:  I'm going to do better.  Yeah, yeah, I've said it before.  But this year, I am going to take a page from the play book of some successful bloggers I follow.  Better to post shorter posts, more frequently.  So that's what I want to try to do.

My biggest problem - no shocker to anyone who knows me well - is there are so many things I want to "talk" about,  if I "said" or wrote about everything I wanted to, I wouldn't be doing my "real" job, selling real estate.  I have a hard time editing myself.  So my posts are really long, and when they can't be really long, and to my mind, "thoughtful," well, I fall into the trap of not writing at all.  So I'm going to try the shorter, pithier approach, we'll see how that goes.  Right now, there is a TON going on in the Richmond real estate market.  Here are a few topics I plan to cover in the days and weeks to come:

• My Predictions for 2012
• Review of 2011, Now That There is Some Time/Distance/Perspective
• 2015 World Cycling Championships and What It Means to Richmond
• Green Is Still the "New" Black, But Are Tear-Downs the "NEW, New" Black?
• The Condos Are Coming, The Condos Are Coming!
• My Love/Hate Relationship With VCU as a Real Estate Developer
• Why I Love the Fan, and You Should Too!

And more.  As always, if you have ideas, suggestions, comments, criticisms, bring it on.  I'm happy to address topics you send me.  And I promise, I promise, I PROMISE, I am going to do a better job of writing on a regular basis.  I'm sure y'all are all so happy.  [;)]

 

Richmond's Best - A Suggestion List for the Lincoln Cast and Crew

Dear Stephen Spielberg, Sally Field, James Spader, Tommy Lee Jones, and other members of the cast and crew of "Lincoln":

Welcome to Richmond.  You've been here a bit now, and I really hope y'all are enjoying yourselves.  Hopefully, you have been welcomed graciously, and have been able to move about your business with a minimum of gawking.  I see that many of you have discovered some of the best restaurants, coffee shops, and hang-outs that Richmond has to offer.  I thought I'd share with you some of my suggestions for some places that are off-the-beaten path, often old Richmond traditions, that you otherwise might miss.  Some are old, some are new, and all of them are near and dear to my heart.  So if you've had dinner at Morton's too many times to count, maybe you could give one of these a whirl.

In no particular order, here we go:

1.  Sally Bell's Kitchen.  I just had to put this as No. 1.  I love it so much.  I'm almost afraid to let you in on the secret, what if there is a run on Sally Lunn bread or cream cheese and olive sandwiches?  Just trust me, if you were not let in on this secret, you would never, ever, ever stumble across this treasure.  Tucked away in a non-descript building on Grace Street, surrounded by VCU, Sally Bell's does carryout boxed lunches, the exact same way they have done them since I was a kid, and since my Mom can remember.  Pick your sandwich, pick potato salad or macaroni salad (if you ask nicely, you can get tomato aspic instead, my Mom's favorite), pick your favorite flavor of upside down cupcake (9 choices!).  Each lunch also comes with a deviled egg and a cheddar wafer with a pecan on top.  This bounty of deliciousness is packed in a cardboard box with the black-and-white Sally Bell logo and tied with string.  Everything is made from scratch on-site by some lovely ladies, many of whom have been there since I was a kid.  The food is smack-your-mama good.  Let's put it this way:  Richmonders are a generally genteel, polite bunch, but Sally Bell's imposes a 5 pounds of potato salad/2 dozen rolls/2 pie limit for Thanksgiving Week.  Otherwise, there would be a run on the place and there might be riots.  Call ahead and place your order, then get your Production Assistant to run on down there to pick it up.  Trust me, you will not be sorry.  Sally Bell's Kitchen, 708 W. Grace Street, Richmond, Virginia 23220. (804) 644-2838.

2.  The Dairy Bar.  Another Richmond treasure tucked away in an unexpected location. The Dairy Bar is located in Scotts Addition and was attached to the former Curles Neck Dairy bottling facility.  Well, the Curles Neck dairy is long gone but the Dairy Bar remains.  The "DB" is beloved by locals for the affordable menu of traditional choices, the wonderful homemade soups and stews, and the best milkshake, bar none, in Richmond.  It always feels like stepping back in time to me, with the green vinyl diner booths and the walls covered with crayoned cow pictures.  Kid-friendly and affordable, with the friendliest service you can imagine.  Now I'm craving a milkshake....The Dairy Bar, 1602 Roseneath Road, Richmond, Virginia  23230.  (804) 355-1937.

3.  Lamplight Roasting Company. Based on the Lincoln sightings reports, everyone seems to have found a favorite coffee shop.  But if you or the crew wants to hang out with local writers, artists and actors, as well as the super-cool hipster tattooed folks, and the people that ride those crazy tall bicycles, this is where I would send you.  It's a bit off the beaten path, on the backside of the Fan District at the corner of Addison and Parkwood.  The food is homemade and excellent, and there are lots of options for vegetarians and vegans.  It's always fun to people watch, and the coffee is really, really good.  I mean, I just like mine hot and dark, but a friend who roasts his own beans and is a bit of a coffee fanatic - yes, I am talking about you, Charles - begrudgingly gives Lamplighter high marks, although it's "not as good as [his] coffee."  But Lamplighter was voted Richmond's Best Coffee.  Plus they have bicycle delivery of coffee beans - how cool is that!  So if you want great coffee and to hang at a local restaurant where the cool factor is such that the other patrons won't be impressed by you and will therefore leave you alone, Lamplighter's my recommendation.  Lamplighter Roasting Company, 116 S. Addison Street, Richmond, Virginia  23220.

4.  Sidewalk Cafe.  One of the many establishments owned and managed by the powerhouse restaurant couple, Katrina and Johnny Giavos, this oldie-but-goodie on the bar scene has the best. brunch. EVER.  The rest of the menu is awesome too, but I have a particular love affair with the Cajun hash.  Before I became a responsible adult, there were some Saturdays I entered Sidewalk at 11 a.m.-ish, not to emerge until hours upon hours later.  Pitchers of mimosas will do that to you.  And when I say pitchers of mimosas, I mean the good kind, where there is just enough OJ to make them orangish.  When I waited tables, back in the day, this was the first bar the restaurant folks would hit when we got off work late night.  When I was at University of Richmond Law School, this was "our" bar, and there was many a night that I danced on those tables.  You'll note, the disco ball is still up and I'm sure they still flip that sucker on at 1:30ish.  [I'm using "ish" quite a bit here, huh?  Memories of the glory days and late nights can do that to you, I guess].  Known for good food, HUGE portions, and stiff drinks, this is a great casual options for brunch, lunch or dinner.  Make sure you ask for Edwina as your server, she will have you in stitches with her many crazy stories the whole daggone time.  Sidewalk Cafe, 2101 Main Street, Richmond, Virginia  23220.  (804) 358-0645.

5.  Stella's.  And speaking of the Giavos clan, Mama Stella is back, and has re-opened her namesake restaurant.  Praise the Lord!  This will be the third iteration of Stella's, which was originally in the space occupied by Edo Squid, then in the space currently occupied by Rowland's, and now springs forth like the phoenix, to life again, in a completely new space on Lafayette in the Malvern area.  As an aside, it looks like Stella leaves some of her magic fairy dust behind in each former location, because each of those restaurants is absolutely wonderful and would be on my Top Ten Best Restaurants in Richmond list.  I almost cried when I found out Stella's was reopening.  It has been, in each of it's iterations, my favorite restaurant EVER in Richmond.  And that's saying a lot, because there are a lot of really, really wonderful restaurants in Richmond.  At the new place they even have my favorite entree on the menu - filet mignon with lump crabmeat and a sherry cream sauce.  Seriously one of the best things I've ever tasted.  But running a very close second are Stella's Greek green beans.  Oh. My. God.  And then for dessert, please, please, please, PLEASE let there be baklava.  You see, sometimes they run out.  Wonderful food and a professional service staff make this a great dining experience.  And if you want a second opinion, check out Style Weekly's recent restaurant review.   Stella's, 1012 Lafayette Street, Richmond, Virginia  23221.  (804) 358-2011.

I wish I had time today to write more.  There are so many other fabulous places here in the City, could go on and on.  I feel terrible leaving out places like Acacia and Magpie and Mezzanine and Rowland's and Zeus Gallery Cafe....there is such a bounty of great restaurants!  So feel free to ring me up for any recommendations you might need.  But duty calls, so I'm off to the salt mines now.  Have a great day filming on Monument Avenue! 

 

RVA Creates and Venture Richmond and Now the "Shockoe Design District" - Really? I Mean REALLY?

I am so sick of these folks just getting it wrong, over and over again.  Apparently, someone told them that the "Creative Class" was the key to urban revitalization.  Per Richard Florida, the leading academic researcher and publisher on the topic, that's exactly right.

But Florida doesn't characterize the "creative class" as only designers, artists, restaurant owners, architects, etc.  In fact these categories of folks are the significant minority of Creative Class members.  However, it appears that Venture Richmond, RVA Creates, and the founders of the Shockoe Design District didn't bother to read "The Rise of the Creative Class," "The Flight of the Creative Class," any of the numerous academic studies and papers Florida has published on the subject, the City of Richmond's own commissioned studies, including "The Young and the Restless," the Crupi Reports I and II....I could go on and on.  In fact, it doesn't appear the folks responsible for these (costly and time-consuming) Richmond initiatives have read ANY of the extensive published materials about what the Creative Class is, what it wants, and how to attract and retain it.

Because if they had, they would have found this definition on Wikipedia:

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Florida describes the Creative Class as comprising 40 million workers—30 percent of the U.S. workforce—and breaks the class into two broad sections, derived from Standard Occupational Classification System codes:

• Super-Creative Core: This group comprises about 12 percent of all U.S. jobs. It includes a wide range of occupations (e.g. science, engineering, education, computer programming, research), with arts, design, and media workers forming a small subset. Florida considers those belonging to this group to “fully engage in the creative process” (2002, p. 69). The Super-Creative Core is considered innovative, creating commercial products and consumer goods. The primary job function of its members is to be creative and innovative. “Along with problem solving, their work may entail problem finding” (Florida, 2002, p. 69).
• Creative Professionals: These professionals are the classic knowledge-based workers and include those working in healthcare, business and finance, the legal sector, and education. They “draw on complex bodies of knowledge to solve specific problems” using higher degrees of education to do so (Florida, 2002).

In addition to these two main groups of creative people, the usually much smaller group of Bohemians is also included in the Creative Class.

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This took me five (5) seconds to find, with a Google search for "Creative Class" and Richard Florida.

Now, people may not believe it, but I appreciate what the Powers That Be are trying to do.  But it bugs the ever-living-you-know-what out of me when it is done poorly and wastes resources that could be better spent on other initiatives that would benefit the entire City, rather than one limited area.  I'll explain later the specifics of why I'm completely annoyed with Venture Richmond, RVA Creates, and now the Shockoe Design District.  Here's the very short version:  Labels and perceptions matter.  You are intentionally or unintentionally excluding a huge number of the Creative Class you want to keep, by focusing only on the "design professionals," restaurant owners, and Bottom-dwelling urbanites.  I sure as heck don't see any resources being flung around to attract and retain the bankers who live in the Munford School District, or the realtors who live in Westover Hills, or the young lawyers who live in Bellevue.

You've got the Creative Class wrong.  And I'm also sick of constantly hearing about Shockoe Bottom.  I've got an idea.  I'll make and sell a T-shirt that says "Richmond.  It's All About the Bottom."  With a big ole' graphic of a hiney on it.  Maybe then I can get my creative punch card stamped.

Meantime, this non-creative, non-young, non-hipster urban dweller and lifelong Richmond resident needs to go make a living.

Squirrels Stadium Controversy - Is It About Baseball or Strategic Development?

Lordy be.  Here we go again.  There are articles, and editorials, and letters to the editor, about whether or not "Richmond," which really means the Richmond Metropolitan Authority ("RMA"), made up of Richmond, Henrico, and Chesterfield, should contribute the money to build a new stadium for the Squirrels AA team.  If they won't commit to building a stadium, there are rumblings that the Squirrels will go away.

Major public reaction seems to be: "Tough noogies. Who cares what the community promised to lure the Squirrels here. Times are tough. That money should be spent on ______ [insert your favorite cause here: education/roads/downtown development]." I should also note that it appears from a very unscientific review and poll that the vast majority of the letter writers and commenters are from the counties. Shocker.

Here's the Letter to the Editor du jour:

I may not be the target audience for the Richmond Squirrels.  I'm just a casual baseball fan who will go out to see the local team a couple of times a year.

This year, I went near the end of the season, when the club was trying to make it into the playoffs. The stands were not full.  I also went to the first home playoff game, and again the stands weren't full.  I fail to see how a new ballpark will increase attendance after the novelty wears off.

I had an enjoyable time at the game, and it didn't matter that the Diamond isn't state-of-the-art.  But I will object strongly to subsidizing a new building just for the sake of keeping this or any other team.

I think people are missing the point.  It's not about the Squirrels per se.  It's about committing to strategic development in a specific part of the City that has the greatest possible likelihood to leverage additional private investment in the City.  A successful City of Richmond is the rising tide that will raise all boats.  Even though Henrico and Chesterfield will never believe that.

And by the way, my recollection is the Shockoe Bottom Stadium proposal was about exactly that, driving private investment in the area and how the cumulative effects of a new baseball stadium would benefit the City. So people who wanted a Shockoe Bottom Stadium can't talk out of both sides of their mouths, and claim in their priposal a new stadium would be an economic driver, but a few years later and in a different location, a new stadium would be an economic suck.

I'm sure this debate is going to continue.  I think next I am going to lay out the reasons a stadium on the Boulevard is the right strategic investment.  And if you want more background on why I felt then the Boulevard was the right place, or more accurately that the Bottom was the wrong place, there are a bunch of old posts on the topic.  Go wild.