SHR; Marshall Health and $50M Prichard Redevelopment

[Jbabbington]

Groundbreaking held for historic Prichard building revitalization plan

A groundbreaking ceremony was held on Tuesday for a $50 million revitalization plan that will convert the historic Prichard Hotel building in Huntington into affordable housing and a health center for seniors.

www.wsaz.com

 

[raleighherdfan]

While I commend the saving of this historic building from its current rotting state, I have to say, what a disappointment the new use ended up being.

 

[MUMAN3419]

Anytime you have an eyesore building being renovated, it’s a good thing. Glad it’s getting put to use and will ultimately help the community by not looking so crappy.

 

[sluggo72]

While I commend the saving of this historic building from its current rotting state, I have to say, what a disappointment the new use ended up being.

what would be your goals for the building? who do you think it would serve better?

 

[raleighherdfan]

what would be your goals for the building? who do you think it would serve better?

Boutique quality hotel with condo/apartment levels. Street level restaurant. Realize in this higher rate driven market, it would be harder to borrow the capital.

An "investment" for "Affordable housing" brings no value to downtown. Helps the bottom line of poor man housing corporations like Winterwood (Lexington KY) who will tap into the govt subsidy grants and medicare/medicaid reimbursement, but that's about it.

 

[Jbabbington]

While I commend the saving of this historic building from its current rotting state, I have to say, what a disappointment the new use ended up being.

It's going to bring 200 jobs to downtown supposedly, I'll take it imo.

Boutique quality hotel with condo/apartment levels. Street level restaurant. Realize in this higher rate driven market, it would be harder to borrow the capital.

This is the plan for the old Coal Exchange Building on 4th. The owner owns the Double Tree. I saw some workers there doing something in December.

 

[Rock98Dog]

The $50MM price tag is really an abuse of your tax dollars. You could build 108 brand new units for less than $15MM and they would be really nice. Add in a new 15,000 square foot medical office building in the complex for another $5MM and you have a total project cost of $20MM for the exact same functionality.

The cost here is higher simply because it can be with the use of a variety of tax credits. Those credits are maximized by increasing the soft costs and developer fees in the deal. I would rarely bid on a tax credit deal like this when I was in banking, just don’t believe in the whole waste of tax dollars.

 

[raleighherdfan]

This is the plan for the old Coal Exchange Building on 4th. The owner owns the Double Tree. I saw some workers there doing something in December.

A ton of work needs done on both of those buildings. I hope it works out. What did the coal exchange finally go for at it's auction sale?

 

[Jbabbington]

A ton of work needs done on both of those buildings. I hope it works out. What did the coal exchange finally go for at it's auction sale?

I believe it went for $500,000. I was talking to someone not too long ago who said that the amount of money that is needed for restoration of the CEB is astronomical.

Unfortunately for the buyer, he bought it like three months before the pandemic. Hopefully those workers is a sign of some movement. With all the plans for fourth ave, that building will be a huge eye sore in the middle of the Innovation District and Downtown.

 

[raleighherdfan]

I believe it went for $500,000. I was talking to someone not too long ago who said that the amount of money that is needed for restoration of the CEB is astronomical.

Unfortunately for the buyer, he bought it like three months before the pandemic. Hopefully those workers is a sign of some movement. With all the plans for fourth ave, that building will be a huge eye sore in the middle of the Innovation District and Downtown.

Yes, astronomical. There probably hasn't been a single update in that building since it stopped burning coal (for it's heating boiler) sometime in the late 80s.

 

[MStap]

Ignoring one's view on the use of tax dollars, as if this was any different than the government's routinely inefficient spending of tax money, this is great news for Huntington.

Sure, it would have been way better if national company put a regional headquarters in the building or something. However, it is hard to complain about hundreds of new jobs and hundreds of new residents coming to downtown Huntington. This will no doubt have a substantial and continuing economic impact on downtown.

This is massively better than the "hope tower" rehab center that was initially planned.

 

[goherdorgohome2]

The $50MM price tag is really an abuse of your tax dollars. You could build 108 brand new units for less than $15MM and they would be really nice. Add in a new 15,000 square foot medical office building in the complex for another $5MM and you have a total project cost of $20MM for the exact same functionality.

The cost here is higher simply because it can be with the use of a variety of tax credits. Those credits are maximized by increasing the soft costs and developer fees in the deal. I would rarely bid on a tax credit deal like this when I was in banking, just don’t believe in the whole waste of tax dollars.

Would be nice to see what elected city folk wives or husbands are driving by the end of this project… I doubt 50M$ actually goes into it

 

[Rock98Dog]

My step brother is a MAI appraiser out of Louisville (how I got my first job after college and my appraising background). He worked of a market and feasibility study for the buyer of the Coal Exchange Building back in 2020.

He called me for market info and my thoughts. What I told him still is true today, there were 3 options for the building:

1) partner with Marshall to create a combination learning/living facility. Told him this would require a hold period because Marshall had acquired too much property close to campus to use this in the short term.

2) create, ironically enough, low income senior housing because the property would qualify for both historic and low income tax credits.

3) a level 2.5 to 2.1 drug rehab and treatment facility. That sounds bad, but it could replace over 100 sober living houses in the downtown area.

There is simply no demand for office space or the amount of residential units that would be developed in the building, plus you have zero parking with the structure.

 

[W-S HerdFan]

My step brother is a MAI appraiser out of Louisville (how I got my first job after college and my appraising background). He worked of a market and feasibility study for the buyer of the Coal Exchange Building back in 2020.

He called me for market info and my thoughts. What I told him still is true today, there were 3 options for the building:

1) partner with Marshall to create a combination learning/living facility. Told him this would require a hold period because Marshall had acquired too much property close to campus to use this in the short term.

2) create, ironically enough, low income senior housing because the property would qualify for both historic and low income tax credits.

3) a level 2.5 to 2.1 drug rehab and treatment facility. That sounds bad, but it could replace over 100 sober living houses in the downtown area.

There is simply no demand for office space or the amount of residential units that would be developed in the building, plus you have zero parking with the structure.

This makes sense, as the renters most likely don’t have cars….

 

[TwolfHerdfan]

My step brother is a MAI appraiser out of Louisville (how I got my first job after college and my appraising background). He worked of a market and feasibility study for the buyer of the Coal Exchange Building back in 2020.

He called me for market info and my thoughts. What I told him still is true today, there were 3 options for the building:

1) partner with Marshall to create a combination learning/living facility. Told him this would require a hold period because Marshall had acquired too much property close to campus to use this in the short term.

2) create, ironically enough, low income senior housing because the property would qualify for both historic and low income tax credits.

3) a level 2.5 to 2.1 drug rehab and treatment facility. That sounds bad, but it could replace over 100 sober living houses in the downtown area.

There is simply no demand for office space or the amount of residential units that would be developed in the building, plus you have zero parking with the structure.

Speaking of sober living houses. Have to give big props to legislators Rohrbach and Tarr for pushing a bill to certify and register all sober living homes in the state. Currently, there are NO restrictions or regulations to set one up, thus a rampant abuse by anyone who wants to suck government drug treatment money by saying their home/building is a sober living facility. Those who don't register will be fined heavily or closed. ALL must show treatment plans and living plans for any residents.
Hopefully this will close many of those homes who are really taking advantage of the residents and not providing any treatment at all. We need to clean this up, pronto.

 

[raleighherdfan]

hundreds of new, old, low-income residents coming to downtown Huntington

I guess the city had to find some place to put everyone who got moved out of the Hal Greer Blvd part of town.

 

[Jbabbington]

On a different note, during yesterday's BOG break they agreed for Brad Smith to enter into negotiations alongside the city for the sale of the old baseball property. Sounds like they might have found some interested parties.

 

[TwolfHerdfan]

On a different note, during yesterday's BOG break they agreed for Brad Smith to enter into negotiations alongside the city for the sale of the old baseball property. Sounds like they might have found some interested parties.

I hope. That property may be tough to sell if it has to be remediated. Be cool to see a Pullman type development go there with another hotel. jmo.

 

[Jbabbington]

I hope. That property may be tough to sell if it has to be remediated. Be cool to see a Pullman type development go there with another hotel. jmo.

I heard Publix was interested in it

 

[raleighherdfan]

I heard Publix was interested in it

Interesting. But will they file permits?? @The Real SamC

 

[RhinoD]

I heard Publix was interested in it

I heard the same thing.

As for the Pritchard Building, questionable tax expenditures aside, I think the use of the building is going to better than most people realize. There is a similar setup where my folks live (a "historic" old building that was redone for senior living) and the impact on the downtown area has been significant.

The seniors get out and support the businesses in the downtown that are walkable, the city has built a new park that they can get to easily with additional accommodations for young families (a splash pad, pickle ball courts, playground, etc), and most of all an eyesore building has been made nice and attracted additional tenants to nearby buildings and spurred more redevelopment (a medical supply business bought an adjacent building for example).

 

[sluggo72]

Boutique quality hotel with condo/apartment levels. Street level restaurant. Realize in this higher rate driven market, it would be harder to borrow the capital.

An "investment" for "Affordable housing" brings no value to downtown. Helps the bottom line of poor man housing corporations like Winterwood (Lexington KY) who will tap into the govt subsidy grants and medicare/medicaid reimbursement, but that's about it.

sounds like you should buy the Morris building on 4th closer to downtown, I think you should go for it!

 

[MStap]

I guess the city had to find some place to put everyone who got moved out of the Hal Greer Blvd part of town.

Yeaaaa, considering Northcott demolition began almost ten years ago I'm sure that's what it is.

 

[raleighherdfan]

Yeaaaa, considering Northcott demolition began almost ten years ago I'm sure that's what it is.

Not just Northcott demolition. Have you not see the rest of the rot and decay all around that neighborhood, that is now being torn down block by block?

 

[raleighherdfan]

sounds like you should buy the Morris building on 4th closer to downtown, I think you should go for it!

It IS in downtown. Another old, formerly great peace of Htgn architecture. I do wonder if that real estate is still tied up in the Phil Cline estate, since his death last month. Unfortunately, after the fire several years ago, it was left to rot and cave in too.

 

[MStap]

Not just Northcott demolition. Have you not see the rest of the rot and decay all around that neighborhood, that is now being torn down block by block?

Huh, you are just making stuff up at this point. Outside of Northcott, name one block in that area that has been "torn down" and left void of housing... let alone "block by block. I can tell you live in Raleigh.

 

[MStap]

I heard the same thing.

As for the Pritchard Building, questionable tax expenditures aside, I think the use of the building is going to better than most people realize. There is a similar setup where my folks live (a "historic" old building that was redone for senior living) and the impact on the downtown area has been significant.

The seniors get out and support the businesses in the downtown that are walkable, the city has built a new park that they can get to easily with additional accommodations for young families (a splash pad, pickle ball courts, playground, etc), and most of all an eyesore building has been made nice and attracted additional tenants to nearby buildings and spurred more redevelopment (a medical supply business bought an adjacent building for example).

I think you are spot on. Even if they are low income seniors, with a large influx of people and big money renovations there is bound to be an economic ripple effect and increase in the desirability of the area. With the medical facilities going in as well, there are going to be doctors, nurses, support staff, etc. all working in that area that were not there before.

 

[Jbabbington]

There's quite a few developments going on in the Hal Greer area, with a few more to begin. Right behind UHAUL there's a 3 building 5 story complex that's already standing, and behind that is a new townhome development that already has tenants.

A couple blocks down from that next to the dollar store on eighth is another big complex they started a couple months ago. Drove by yesterday on my way home from work, and that one is already stood up as well.

 

[raleighherdfan]

Huh, you are just making stuff up at this point. Outside of Northcott, name one block in that area that has been "torn down" and left void of housing... let alone "block by block. I can tell you live in Raleigh.

i misspoke. The Hal Greer Blvd corridor is going to be changing in the coming years. Blocks of old, decrepit properties are going to be torn down and removed for improved development (at least that is what the city has claimed). The older "low income" owner for these properties is going to have to go somewhere.

Where do they plan to bus in the low income people to live in the renovated Pritchard if not from the low income areas in town?

 

[MStap]

i misspoke. The Hal Greer Blvd corridor is going to be changing in the coming years. Blocks of old, decrepit properties are going to be torn down and removed for improved development (at least that is what the city has claimed). The older "low income" owner for these properties is going to have to go somewhere.

Where do they plan to bus in the low income people to live in the renovated Pritchard if not from the low income areas in town?

That's fair. They are currently building three large residential developments in the area. Two directly on Hal Greer across from the old Northcott buildings and one on 8th ave near 20th street. With how fast these have gone up, I'm sure they can be ready for any demand needed.

Once completed, I'm sure the renovated Pritchard is going to be extremely desirable. If I had a low income relative in say Wayne County, Lincoln County, or elsewhere in an average apartment or home, I'd already be trying to figure out a way to get them set up in this place.

 

[RhinoD]

I think you are spot on. Even if they are low income seniors, with a large influx of people and big money renovations there is bound to be an economic ripple effect and increase in the desirability of the area. With the medical facilities going in as well, there are going to be doctors, nurses, support staff, etc. all working in that area that were not there before.

The key to any downtown redevelopment is mixed use... Do we want 10 buildings of low-income seniors in the downtown area? - Of course not... Can one nice, remodeled, building for such tenants add to the downtown? - It certainly can and has in other towns/cities.

With all that Marshall is doing in terms of building new facilities and helping spur development between Hal Greer and 28th Street, seeing some redevelopment in the downtown is a positive. Making Huntington nicer and more desirable isn't going to happen over night, or even in a single decade, it's going to take continued efforts by the state, city, Marshall, private businesses, etc to make it happen.

I'm looking at buying a second home in Huntington currently to use as a vacation home (during football/soccer and basketball seasons) and I am purposely looking at "bargain" properties in less desirable neighborhoods. I have the means to renovate and if it's just a second home the neighborhood isn't really a huge concern for me. Im by no means some big time real estate investor, but with how cheap the prices are in Huntington right now, it's an opportunity to buy low, have a place that can save me on hotels throughout the year, and make a bad property better.

 

[ru4_mu2]

The key to any downtown redevelopment is mixed use... Do we want 10 buildings of low-income seniors in the downtown area? - Of course not... Can one nice, remodeled, building for such tenants add to the downtown? - It certainly can and has in other towns/cities.

With all that Marshall is doing in terms of building new facilities and helping spur development between Hal Greer and 28th Street, seeing some redevelopment in the downtown is a positive. Making Huntington nicer and more desirable isn't going to happen over night, or even in a single decade, it's going to take continued efforts by the state, city, Marshall, private businesses, etc to make it happen.

I'm looking at buying a second home in Huntington currently to use as a vacation home (during football/soccer and basketball seasons) and I am purposely looking at "bargain" properties in less desirable neighborhoods. I have the means to renovate and if it's just a second home the neighborhood isn't really a huge concern for me. Im by no means some big time real estate investor, but with how cheap the prices are in Huntington right now, it's an opportunity to buy low, have a place that can save me on hotels throughout the year, and make a bad property better.

Doesn't get more bargained price than this one. Good luck ;-) https://www.realtor.com/realestatea...ngton_WV_25701_M49737-97589?from=srp-map-list

 

[RhinoD]

Doesn't get much more bargained price than this one. Good luck ;-) https://www.realtor.com/realestatea...ngton_WV_25701_M49737-97589?from=srp-map-list

Haha... Could probably get the two adjacent houses in a package deal for less than 50k... Demolish the whole block and put something decent there.

 

[sportsphantom1]

On a different note, during yesterday's BOG break they agreed for Brad Smith to enter into negotiations alongside the city for the sale of the old baseball property. Sounds like they might have found some interested parties.

Why would they sale the property? They may need that land for some type of future Marshall development. Its expensive enough as it is to get property around the University. I dont know why they would get rid of that land. Its very shortsighted. Im surprised Brad Smith wouldnt understand the importance of keeping land like that. Bad decision IMO.

 

[TwolfHerdfan]

Why would they sale the property? They may need that land for some type of future Marshall development. Its expensive enough as it is to get property around the University. I dont know why they would get rid of that land. Its very shortsighted. Im surprised Brad Smith wouldnt understand the importance of keeping land like that. Bad decision IMO.

I'd say there are remediation issues, utilities, etc. those items killed the stadium project for that piece of land. They weren't even considered. Just a guess.

 

[Jbabbington]

Why would they sale the property? They may need that land for some type of future development. Its expensive enough as it is to get property around the University. I dont know why they would get rid of that land

Going off of Patrick Farrell's comments on facebook, who's on the BOG and currently running for mayor, it seems that there are parties ready/getting ready to develop some of the land. That's why BS was put in charge of negotiations.

 

[MStap]

Why would they sale the property? They may need that land for some type of future Marshall development. Its expensive enough as it is to get property around the University. I dont know why they would get rid of that land. Its very shortsighted. Im surprised Brad Smith wouldnt understand the importance of keeping land like that. Bad decision IMO.

I assume they would only sell that property contingent upon the buyer using it for something that would benefit Marshall and/or the students. That is the only thing that makes sense as to why they would want to get rid of land at that location.

 

[raleighherdfan]

Wasn't there major utility (water line main) under the lot that made the cost of development (moving utilities, removing contaminated soil) prohibitive?

I always thought that parcel was too small for a baseball stadium facility anyway. The original design looked like it was crammed into the land. Maybe Marshall made a profit on it's sale???

 

[goherdorgohome2]

I’ve only heard that Krogers was supposed to build on that corner.. current location on 5th is to small to expand and they want to expand.. we will see.. Publix or New Krogers will be fine by me. Better then another Bank, vape shop, pawn shop or dispensary!

 

[goherd73]

Rumor was a Kroger Marketplace. First one in the area.