143 units (condos, townhomes and houses) planned
1 unit built
OAKWOOD — Allan Rinzler knows it’s a tough time to start an upscale housing development, but the principal for the Oakwood Investment Group said he thinks Pointe Oakwood is unique, in part because of its location.
“The economy has put a pall on people moving into new housing in general ... but we offer one thing not available anywhere else — the opportunity to have a new residence in the city of Oakwood,” he said. “About 90 percent of the homes in Oakwood are 50 years old or more.”
Pointe Oakwood plans to open its model home in mid-August, at which point the development at Far Hills and Schantz avenues will begin to find out if it can overcome the current housing slump.
Statistics from the Home Builders Association of Dayton show it will be a challenge. Local building permits for single-family homes in 2010 almost match last year’s decade-low numbers. Nationally, new home sales in May dropped to the slowest pace in the 47 years records have been kept.
“We had almost the perfect storm hit us,” said Walt Hibner, the association’s executive director.
Hibner cited lack of consumer confidence in the economy, a lack of lending from banks to builders, plus short sales and foreclosures forcing down appraisals as the three key factors continuing to hurt the housing industry. But he said new jobs coming soon to Wright-Patterson Air Force Base, plus the steady stream of local college graduates are reasons for optimism.
One challenge for Pointe Oakwood is the cost of the homes, as the 79 single-family units are expected to fetch $400,000 or more. The other 64 units are planned as town homes and condominiums for a later phase.
“In this market, price points seem to be the driving factor, and (Pointe Oakwood) is a high-end price point,” Hibner said.
But Rinzler said one of Pointe Oakwood’s target markets could solve the price issue. He said many longtime Oakwood residents want to stay in the community after their children are grown, but don’t want the hassle of maintaining their large home or property. Pointe Oakwood would offer the city’s only high-quality new homes with exterior maintenance included.
Sugarcreek Twp.’s Sugar Ridge development was conceived with the same idea of drawing empty-nesters. But after five homes were built in 2008, there has been no new activity.
And the Village of North Clayton, an upscale lifestyle community started in 2006, has stalled after about 15 homes were built.
Rinzler is aware of the risks, noting that Pointe Oakwood’s second major road won’t be built immediately as developers measure the interest in the first phase of the community.
“We won’t spend that money until it’s appropriate,” he said.
Hibner said the Dayton market has pockets of success, pointing to the moderately priced Carriage Trails in Huber Heights and the more upscale Soraya Farms in Clearcreek Twp. as developments that are adding new streets this year.
“Usually we’re all doing well or we’re all struggling, so this is different,” he said.
“We like Pointe Oakwood because it’s an infill project in a developed area that has all the amenities of a more suburban development. There are a lot of opportunities closer to Dayton right now.”
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