Effect of $40 mil development in Hilltop

[Annie G.]

Hi all,

I'm curious to hear your thoughts on how the new $40 million dollar development in Hilltop (98405) will effect the neighborhood & price of real estate in the area. The development will be located on a currently vacant lot on S 11th, between MLK and S J, and will bring 247 market rate apartments to the area, as well as retail spaces.

There has been talk for years about the changing tide of the Hilltop area, but this development seems to be the first substantial private investment. As a resident, it is exciting to see a mixed use space come to fruition and I can certainly see that there is lots of potential. Though there are legitimate concerns that this complex will push gentrification, I think it will add to the vibrancy of the Hilltop neighborhood.

As a new investor, I'm not sure if the addition of this complex will push up rents in the area by increasing average rents and desirability, or depress them because it is adding a significant number of new units, thus decreasing the demand on other units.  

Am I wrong to think that this single complex can have a large impact on the vibrancy of the neighborhood, and thus change the profit margins for other investors in the neighborhood? How do you see it playing out?

http://www.thenewstribune.com/news/politics-government/article143449899.html

Keywords: Pierce County, Tacoma, Hilltop, 98405, South Sound, Washington

[Kim Webster]

I can tell you what I have seen as an agent in the Tacoma market the past month.  I put in an offer on a 1500sf 3 bed 2 bath in Hiltop 2 weeks ago.  We competed agains 13 offers and it went for $45k over asking price.  The next week I put an offer on a very similar home a little further south in Tacoma and the house went for $25K over asking.  Hiltop seems to be taking off at the moment!