Infill Development Commands Top Dollar

FAYETTEVILLE HAS SUPPLY OF 93 NEW HOMES LISTED FOR SALE AS OF MARCH 15

Cam Mosley, left, looks at a house at 25 Gregg Ave. on Wednesday in Fayetteville while visiting with real estate agent April Hamm, middle, and builder Todd Jacobs. Utility costs in the house are estimated to be $1,000 per year.
Cam Mosley, left, looks at a house at 25 Gregg Ave. on Wednesday in Fayetteville while visiting with real estate agent April Hamm, middle, and builder Todd Jacobs. Utility costs in the house are estimated to be $1,000 per year.

— Green conscious homebuyers seeking sustainable urban living quarters are willing to pay top dollar for the right property, according to Tom Reed, appraiser and partner with Streetsmart Data Services in Fayetteville.

That’s true even when the broader real estate market is still trying to work its way back to health.

Fayetteville had a supply of 93 new homes listed for sale as of March 15. The median price per square foot for homes priced between $150,000 and $199,000 is $102 per square foot, according to MountData.

New homes listed between $250,000 and $300,000 breaks down to a median price of $104 per square foot. In all price categories115 new homes sold in Fayetteville last year with a median sales price of $185,000 or $104 per square foot. This compares to $176,000 or $100 per foot across the region.

Reed said prices are substantially higher in some areas where demand overshadows supply.

“There is a limited supply of new single family property within walking distance to University of Arkansas, public library or the central business district and a wide range of buyers who prefer the urban setting,” Reed said.

He said communities across the nation have been experiencing urban revivals for the past decade after years of suburban sprawl, which was part of the impetus for Fayetteville’s downtown condo market building in recent years.

“Infill redevelopment is a vital part of a city’s identity. There willalways be limited lots available for single family homes near downtown,” Reed said.

Jake Newell and Todd Jacobs, local building entrepreneurs, have been successful filling that market niche during the past year. The partners find infill property they can transform into sustainable single family homes priced between $165,000 and $260,000.

“We work together from the design concept to the finishing touches making sure the homes are energy effcient and fit in well with the neighborhood surroundings,” Jacobs said.

Their latest two properties at 21 and 25 N. Gregg Avenue earned a silver rating by the National Home Builders Association Green Standard and are Energy Star certifi ed.

Newell said the homes’ energy bills will average $1,000 a year,another important perk for buyers looking for ways to reduce their carbon footprint.

Newell said one property is under contract to a university student who is purchasing the home with her parents because of its low yard maintenance and it allows her to walk to class.

Listing agent Tami Fagan said the builders got a full price offer at $260,000 and have had several showings of the other house next door.

When you consider this location and annual cost savings related to parking and energy usage it’s not surprising the builders are getting top dollar, Reed said.

The Department of Energy reports the average house is responsible for more air pollution than the average car. Newell and Jacobs agree it’s important for them to make sustainable choices in their redevelopment projects.

When a homeowner buys one of their energy eff cient properties but also can park the car and walk to the entertainment district and farmer’s market, the partners feel like they have done their part.

“It’s the right thing to do,” Newell said. “We hope to improve local neighborhood communities by working with existing infrastructure and redevelop certain infill properties.”

Fagan has sold six of their new homes near downtown Fayetteville in the past 12 months and says buyers have not balked at the $170 per square-foot-price near the University of Arkansas, nor the $135 per square foot paid for property near Walker Park, a few blocks south of downtown.

Craig Crocker walked away from Wall Street and chose urban Fayetteville as his new destination in 2010.

“I wanted to be able to park my car and walk to the library and the market anytime I wanted. Having lived in New York for 25 years I wanted to be near downtown, but I didn’t want the upkeep of an older home,” Crocker said. “I was looking for a quaint university town reminiscentof Austin in the 1970s. I found it in Fayetteville.”

Crocker is a freelance computer programmer and a member of the Fayetteville Jazz Collective.

“Ironically, I moved to New York in the 1980s to be a professional jazz musician and ended up working a fast paced job for a Wall Streetbank. It was my move to Fayetteville that has allowed me more time to focus on my music,” Crocker said.

Cole Bailey, a 25-yearold martial arts instructor and business entrepreneur, purchased a home near Crocker almost a year ago.

“I wanted to be near downtown and absolutely lovedthe eclectic vibes in this neighborhood. There are eight or nine musicians that live nearby and in the spring the street comes alive. They neighbors are great.” Bailey said.

While he is isn’t able to walk to work, Bailey said he often bicycles downtown on the Frisco Trail.

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AT A GLANCE

TERMS TO KNOW

Green Building incorporates environmental considerations and resource efficiency into every step of the home building and land development process to minimize environmental impact.

Carbon footprint is a measure of all greenhouse gasses individually produced.

Infill redevelopment is restoring or enhancing the value of vacant land in urbanized areas.

SOURCE: NATIONAL HOME BUILDERS ASSOCIATION

Business, Pages 9 on 04/03/2011

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