With America facing a severe housing shortage, attention is turning to repurposing underperforming retail spaces, such as strip malls and shopping centers, into residential buildings. Converting just 10% of these sites could create 700,000 new housing units nationwide, offering a potential solution to the housing crisis. Unlike office-to-apartment projects, which have proven costly and rare, retail conversions present a more promising and feasible option due to the abundance of retail space, existing infrastructure, and potential for mixed-use developments. While challenges such as lighting and utility work exist, the trend of turning dead malls into apartments is gaining traction as a viable solution to the housing shortage.
Disney is planning to build a new residential development called Asteria in Pittsboro, North Carolina, designed by the company's theme park designers. The 1,500-acre community will feature 4,000 single-family and multifamily homes, with amenities such as a clubhouse, wellness center, community garden, and restaurants. The homes are expected to go on sale by 2027. This announcement follows Disney's plans to build residential communities across the US, with the first one, Cotino, currently under construction in Southern California. The starting price for homes in Cotino is expected to be in the upper $1 million to lower $2 million range.
Cleveland-based real estate developer, Addison Properties, is expanding its Addison Farms development in Delaware, Ohio, by constructing 146 townhomes on over 17 acres of land. The 273-acre development will also include 161 single-family homes and 280 apartment units. The townhomes will be for sale and will range from two to three stories, with a minimum of 1,200 square feet and a two-car garage. The proposal's preliminary development plan has been approved, and a final development plan will be presented for consideration.
San Francisco-based office developer SKS Real Estate Partners has bought the former Union Bank building on California Street in the city's Financial District for less than $225 per square foot, about 75% lower than the property had been offered for in 2020. The deal is likely to disappoint those hoping for a housing developer to convert the 300,000-square-foot building to apartments or condos. SKS Real Estate Partners specializes in repositioning underused properties and is not in the residential development business. The pending deal is being celebrated as a market-defining transaction that will establish a comp of what an empty Financial District office building is worth in the post-pandemic city.
