The Kastel Building- Assessment Results

The 2007 proposed market value for the Kastel building was $6,217,336 (See notice). As of this morning the Collin CAD has posted the revised valuation of $4,723,880 (See notice) for 2007. What does this mean? The initial estimated taxes were $171,740 and now they will be approximately $130,379. The initial assessment was $218 per square foot, and now the assessment is at $166 per square foot. See my May 3, 2007 posting in regards to the valuation of the Kastel building. Interestingly enough, my alaysis indicated a value of $4.8 million to $5.0 million, which is within $76,000 of the final assessed value.. I have created an updated spreadsheet here.

The Kastel Building- Assessment Results

The 2007 proposed market value for the Kastel building was $6,217,336 (See notice). As of this morning the Collin CAD has posted the revised valuation of $4,723,880 (See notice) for 2007. What does this mean? The initial estimated taxes were $171,740 and now they will be approximately $130,379. The initial assessment was $218 per square foot, and now the assessment is at $166 per square foot. See my May 3, 2007 posting in regards to the valuation of the Kastel building. Interestingly enough, my alaysis indicated a value of $4.8 million to $5.0 million, which is within $76,000 of the final assessed value.. I have created an updated spreadsheet here.

Below is a posting from last year regarding the Kastel building in Adriatica. I found it interesting that the Collin CAD 2007 assessed value is $6,200,000 and my analysis came in at a value of $6,500,000. I have created a spreadsheet that lists the values of major buildings and tracts of land in Adriatica based on the Collin CAD 2007 assessed values. I don’t think the value of the Kastel building is out of line based on a cost approach, but don’t think the income will support a $6,200,000 value. You will notice that the land values assigned are off of the charts. In my opinion and experience, the CAD is putting the values at the high end of the market and fishing for costs and sales prices from Blackard and the owners within Adriatica. When we get the certified values in a few months, I predict these values will be lower.
Spreadsheet

Loopnet, a service that lists commercial property for sale and lease shows that current rental rates for Mr. Blackard’s Kastel (Keller Williams) Building to be $36.00 per square foot full service. Based on my experience and knowledge of commercial buildings, it is not too far fetched to estimate the cost of this building exceeds $6,500,000. If the 30,000 square foot building were 100% leased at the $36.00 per square foot rental rate, the typical investor would estimate the value of the building to be in the $5,000,000-$5,500,000 range. Realistically using a 10 % vacancy rate the value would be in the $4,800,000 to $5,000,000 range. My observation? This building is a project that Mr. Blackard wants and is willing to build to his requirements regardless of profit. My prediction is that this building will need to lower its rental rates to attract tenants or it will sit with a high vacancy rate. I believe realistically the rates for this building should be in the $20-$25 range based on the surrounding office rents. If this building can only command $25 per square foot, it would probably support a sale price of $3,500,000-$4,000,000 to a savvy investor.

Below is a posting from last year regarding the Kastel building in Adriatica. I found it interesting that the Collin CAD 2007 assessed value is $6,200,000 and my analysis came in at a value of $6,500,000. I have created a spreadsheet that lists the values of major buildings and tracts of land in Adriatica based on the Collin CAD 2007 assessed values. I don’t think the value of the Kastel building is out of line based on a cost approach, but don’t think the income will support a $6,200,000 value. You will notice that the land values assigned are off of the charts. In my opinion and experience, the CAD is putting the values at the high end of the market and fishing for costs and sales prices from Blackard and the owners within Adriatica. When we get the certified values in a few months, I predict these values will be lower.
Spreadsheet

Loopnet, a service that lists commercial property for sale and lease shows that current rental rates for Mr. Blackard’s Kastel (Keller Williams) Building to be $36.00 per square foot full service. Based on my experience and knowledge of commercial buildings, it is not too far fetched to estimate the cost of this building exceeds $6,500,000. If the 30,000 square foot building were 100% leased at the $36.00 per square foot rental rate, the typical investor would estimate the value of the building to be in the $5,000,000-$5,500,000 range. Realistically using a 10 % vacancy rate the value would be in the $4,800,000 to $5,000,000 range. My observation? This building is a project that Mr. Blackard wants and is willing to build to his requirements regardless of profit. My prediction is that this building will need to lower its rental rates to attract tenants or it will sit with a high vacancy rate. I believe realistically the rates for this building should be in the $20-$25 range based on the surrounding office rents. If this building can only command $25 per square foot, it would probably support a sale price of $3,500,000-$4,000,000 to a savvy investor.

The first tenants of the Kastel building have started to move in. Apparently Mr.Blackard has added another sculpture to the Kastel Building, at the North side of the building facing Virginia Parkway. Interesting..

The top of the bell tower is being constructed and is sitting next to the the foundation. The town homes are in the framing stage and a Keller Williams sign has been placed on the side of the Kastel building. The Keller Williams sign really detracts from the appearance of the Kastel building. Pictures to follow.....

Office suites in the Kastel Building

There are a select number of small (less then 500 sf) office suites available in the Kastel building. These spaces range between $45-51 per square foot. Nice, but on a per square foot basis this rate is higher than almost anything you will find in the McKinney area. You can see the listings here.

Office suites in the Kastel Building

There are a select number of small (less then 500 sf) office suites available in the Kastel building. These spaces range between $45-51 per square foot. Nice, but on a per square foot basis this rate is higher than almost anything you will find in the McKinney area. You can see the listings here.

The top of the bell tower is being constructed and is sitting next to the the foundation. The town homes are in the framing stage and a Keller Williams sign has been placed on the side of the Kastel building. The Keller Williams sign really detracts from the appearance of the Kastel building. Pictures to follow.....

The first tenants of the Kastel building have started to move in. Apparently Mr.Blackard has added another sculpture to the Kastel Building, at the North side of the building facing Virginia Parkway. Interesting..

Tera Kastel at Adriatica

The proposal to approve the Tera Kastel Vet Clinic goes in front of the City Council tonight. Here is the site plan.

Tera Kastel at Adriatica

The proposal to approve the Tera Kastel Vet Clinic goes in front of the City Council tonight. Here is the site plan.

As mentioned in a prior posting, tonight is the "State of the Union" meeting for the Adriatica development. I will be unable to attend this meeting due to prior arraignments, so if anyone reading this attends, please email me here. Below is the blurb in regards to the meeting.

ADRIATICA! What's in store for this exciting new development?Join us August 23, 7-8 pm @ The Kastel, home of Keller Williams Realty on the corner of Virginia and Stonebridge Drive, for an update aboutthe newest phase of Stonebridge Ranch. To reserve a spot, emailRSVP@iHuntHomes.com by August 20.GUEST SPEAKER: Steve Johnson, PR director @ the Blackard Group,managing partner Adriatica light refreshments provided

Out of the blue palm trees have appeared in front of the Kastel building. Interesting look,but if Blackard put them there, they must be found in Croatia. A banner for the Adriatica Day Spa has been put up, and the roofing tile has started on Dr. Bucannaon's office.

The Church on the Water's Edge house band, pictured above on the right, performed a free Christmas concert in front of The Kastel building at The Adriatica, where the Keller Williams office is located, on Christmas Eve, and got the crowd singing along to timeless Christmas carols. A candle light service was also held to commemorate the Christmas holiday and members of the church, along with people from the general public attended the free concert with their families and loved ones. The house band of The Church on the Water's Edge, which is based in McKinney, performs in the background on Christmas Eve during a candle light concert and service held at The Adriatica

The below blurb is from AG, another contact that passes information to me in regards to Adriatica. Thanks for the head's up AG!

"ADRIATICA! What's in store for this exciting new develoment?Join us August 23, 7-8 pm @ The Kastel, home of Keller Williams Realtyon the corner of Virginia and Stonebridge Drive, for an update aboutthe newest phase of Stonebridge Ranch. To reserve a spot, emailRSVP@iHuntHomes.com by August 20.GUEST SPEAKER: Steve Johnson, PR director @ the Blackard Group,managing partner Adriaticalight refreshments provided. Anyone plan on attending? If so, please comment below.

It appears that excavation has begun in preparation of the parking garage . Work continues n the town homes, which it appears that some of the units will consist of three stories, allowing a great view of Stonebridge Lake. A few new trees have been planted around the Kastel building and the other retail buildings. If you click on the first picture to get a larger view, check out the home across the lake. This is the home being built by MJ Brown, a custom builder, and is in excess of 15,000 square feet. It is in the Kings Lake subdivision.

The beginning of the end?

A request to replat the large tract of land behind the retail buildings and Kastel building has been approved my the City of McKinney P&Z. The Letter of Intent indicates that request is to allow the current owner to sell this tract. What does this mean? Is Blackard selling this land and allowing another developer to come in and build? Is this the start of a big sell off of this project? You can read the details here..

The latest rental rates at the Kastel Building. PDF

Pictures of the Keller Williams signs on the "kastel" building. Upon second inspection they appear to be the finished product. These signs really take away from the beauty of building, and if other tenants want signage,things can only look worse. In order to keep a uniform look in Adriatica, I would think that Blackard would have required his approval of all signs. Also pictured is the top of the bell tower.