In the next stage of the saga that is The VUE, all listing have been pulled from the Multiple Listing Service that Realtors use to look for properties. This normally means one of two things; the project is being repriced; the project is being converted into rentals. Here are my thoughts on both.
Repricing. Without having exact numbers to work with, I have made some estimates to use for projections. Assuming there are 408 units in the building, and assuming a number of units at similar sizes, and assuming that the new owner did in fact secure the debt for $100,000,000, my math tells me that the purchase price by the new owner is around $220 per square foot. It would not be inconceivable that the new for sale price could be in the $300 per sq ft range, down from the initial $535 per sq ft.
Please remember these projections are based on assumptions that are probable, but not confirmed.
Rental. It is a hot rental market, and the new owner could certainly price the units at market rates and do very well. Current rental availability in downtown Charlotte is pretty low, and the units available either lack amenities, or professional ownership.
My projection for a final decision is mid June.
Should the new owner decide on selling the units, I believe there would be a rush on the building. The immediate effect would be to put a damper on other resale activity in the downtown market, certainly during the first few months, perhaps even through to the 1st quarter of 2013, but the building would fill in fast.
Should the new owner decide on rentals, again I believe there would be a rush on the building, but not as intense.
In either event, the sudden onslaught of people into the Fourth Ward of downtown Charlotte will have a serious impact on city living. Additionally, lights on in the building for the DNC will make for some dramatic TV shots.
Whatever the outcome, the near term impact of this building is about to be felt.