Standard Newsletter
June 17th 2020
The Central design concept (De La Vega Development)
Staying centered, The Central development
is still on track in light of COVID-19.
In February 2020, multiple press releases announced a green light to De La Vega Development's rumored project just north of City Place in Dallas.
The majority of Dallas residents will remember the location as the former home of the now infamous Leaning Tower of Dallas. The development, called The Central, is slated to feature 5 million square feet of office, residential, hospitality, food, beverage, entertainment and retail. A 3.5-acre park will also be built on the property.
Plans for phase one of the project entail a large office building, two apartment communities, and two hotels. This phase will also open up over 110,000 square feet of restaurant and retail spaces.
The developer De La Vega has been working on the project for more than five years. That's no small time commitment, so we wanted to find out what's the latest happening on the project now that COVID-19 has reared its ugly head.
In a recent call with the media team, we confirmed that all projects for The Central are still currently green lit even in light of the COVID-19 economic disaster. So what does this mean for residential real estate?
The Standard Real Estate is forecasting the area north of Haskell, East of 75, South of Henderson, and East of Gaston Ave to be the benefactor of tremendous increases in property value in relation to the surrounding areas. In real estate, situs (position/site in latin, meaning the area where a property is located) rules all and the Central is about to put that area of East Dallas on the map. In fact the impact should be similar in manner to the development of Uptown.
In the 80's Uptown was not what we remember it as today. In fact, the development of Uptown was one of the largest projects the city has ever seen. Given, the $2.5 billion influx from The Central, we expect the entire surrounding area to one day resemble Uptown. This would feature high walkability scores, increased property values, and a continued increase in pace for zoning changes in the area. Those zoning changes will allow builders and developers of residential real estate to realize the returns necessary to build new homes in the area, ultimately spurring the real estate boom of the area.
Mortgage applications and refinancing are on the rise.
More people applied for mortgages June 1-5 than May 25-29.
The Market Composite Index is a measure of mortgage loan application volume. The index rose 20% from the last week in May to the first week in June, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
Refinancing increased from 59.5% to 61.3% of all applications. The Refinancing Index was up 11% from late May to early June and 80% from last June. The Purchase Index rose 15% during that time period and 13% from a year ago.
“Fueled again by low mortgage rates, pent-up demand from earlier this spring, and states reopening across the country, purchase mortgage applications and refinances both increased. The recovery in the purchase market continues to gain steam, with the seasonally adjusted index rising to its highest level since January. Purchase activity increased for the eighth straight week and was a notable 13% higher than a year ago,” says Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Refinances moved higher for the first time in nearly two months, with both conventional and government applications rising and the overall index coming in 80% above year-ago levels.”
From late May to early June, FHA applications increased from 11.3% to 11.5% of total applications; VA applications increased from 12% to 12.3%; and USDA applications decreased from 0.7% to 0.6%.
(National Association of Realtors)
Closing Time
Residential DFW: The priciest closing recorded yesterday was in North Dallas 75230 Ave at $1,642,500.
Residential Tyler: The priciest closing recorded yesterday was in Tyler 75703 at $425,000.
New on Market
Residential DFW: The priciest listing to hit the market yesterday was 3737 Normandy in Highland Park at $3,195,000.
Residential Tyler: The priciest listing reported yesterday was 14101 W. Peninsula Dr in Whitehouse at $890,000.
Article written by The Standard Real Estate Team