HARRISBURG, PA - The economy is torn to shreds, and the local real estate market is reeling, but those problems aren't stopping Dick Richardson and another local developer from building multi-million-dollar luxury apartments and condominiums in the Harrisburg area. Richardson is building a high-end, six-unit apartment building in Wormleysburg, Cumberland County. He would not disclose the project cost. Construction of the 20,000-square-foot building started in April and should wrap in February.
The structure sits on a half-acre where five small houses used to exist at 10 N. Front St. The previous property owners tore the houses down and had planned to build condominiums before abandoning their plans, Richardson said. The two-bedroom apartments have 2,425 square feet of space and will have two full baths and an office. Perhaps the best feature is the views, said Craig Deimler, vice president of Deimler and Sons Construction Inc., based in Swatara Township, Dauphin County. Deimler & Sons is building the wooden-frame, concrete and stone structure.
The building sits directly across the Susquehanna River from the state Capitol. Tenants will have clear views of the Capitol and the rest of the Harrisburg skyline, Deimler and Richardson said. Apartments will increase in price on each higher floor because of the sightlines, Deimler said. The first floor will house the rental office and a small parking garage. The apartments will be on the second, third and fourth floors.
Richardson began his development process before the economy went south about two years ago, he said. But he hasn't changed course. The apartments will rent for between $2,100 and $2,500 per month, but that could change, he said. "Somebody will rent the places," Richardson said. The developer expects seniors who no longer want to own houses to rent the apartments. And while Richardson was secretive about his reasons for developing the building, he does have a nose for the senior real estate market.
Richardson is a retired owner of long-term-care facilities, and he still sells senior-living complexes up and down the East Coast. The 60-year-old is developing the speculative luxury apartment building on the side under Richardson Real Estate, based in Lemoyne, Cumberland County. Richardson is not the only developer putting up high-end living quarters in the Harrisburg area, where a niche market for high-end apartments and condominiums has sprouted, some developers said.
York's Susquehanna Real Estate is developing a high-end residential condominium project farther north on the east side of the river in Harrisburg. The $22 million Tracy Manor condominium project sits in the 1800 block of North Front Street. The developer is building a 92,000-square-foot seven-story condominium building adjacent to the historic Tracy mansion. The high-rise will house 32 units and, like Richardson's apartments, will boast front-and-center views of the river. Susquehanna is turning the mansion into offices and a restaurant.
The economy was also different when Susquehanna Chief Executive Officer Jack Kay announced the project in May of 2007. The project has since been delayed by fluctuating building-materials prices and the economy. But Susquehanna's plans changed only slightly because interested buyers wanted to reconfigure some of the condominiums, Kay said. The condominium building was going to contain 37 units and now will house 32. Some customers have decided to combine units into bigger condos, he said.
Susquehanna's 1,600-square-foot condominiums will start selling in the mid-$300,000 range. The bigger, combined units go up to the $1 million range, Kay said. Susquehanna is still heavily marketing the project, and Kay said he expects construction to start in the spring. Kay started unofficially marketing the building last year, but he ramped up marketing efforts last month when Susquehanna opened a marketing center in the mansion's carriage house. The marketing center has a built-out kitchen, bathroom and finishes planned for the condos.
Susquehanna has sold 12 units. That includes several that were combined into one larger condominium. The company needs to sell six to eight more condos to move ahead this spring, and Kay said he is confident that will happen. Building a condominium project in the capital city makes sense, Kay said. He expects to sell units to professionals who work for the state and others from accounting firms, law firms and organizations that work with the state, he said.
Tracy Manor is close to highways, it is across from the walking path next to the Susquehanna River, it's near a train and bus station, and it is within walking distance of the capitol and downtown Harrisburg. All these factors make Tracy Manor attractive to the clientele he plans to sell to, he said. Richardson has not started marketing his apartment building but has potential tenants seriously pursuing two of his six apartments, he said. He is developing a Web site for the building, but since there are not many units to rent, he is depending on signs at the structure and the building itself to catch eyes, he said. The project is about 60 percent complete.
One luxury apartments project that has shown staying power in Harrisburg is The Old City Hall Apartments. The apartments have been around since 1982, when a Philadelphia-area developer converted the historic City Hall building at 423 Walnut St. into luxury loft-style apartments. The building was originally constructed as a technology high school in 1910 and remodeled in 1928 and became Harrisburg's new city hall building. Historic Landmarks for Living bought the building and converted it into 82 luxury apartments. Old City Hall apartments start at $975 per month.
Source: CentralPennBusiness.com