I don’t think that the King Edward project will be affectead, as the money was already in place before the current downturn.  I’ve also got faith that the Standard Life project will move forward.  As for the larger issue of downtown revitalization in Jackson, one hopes that lenders may see the success being realized in downtown Jackson and will want to build upon them.  Overall, the costs associated with downtown revitalization are much lower than those associated with the creation and maintenance of sprawl.  the question is whether or not those with the purse strings will take the long or the short view.  One hopes for the former.

My concern for the King Edward isn’t that the investment money will disappear for this particular project, but rather that once it is finished, the market for high-end housing—whether downtown, in the suburbs, or anywhere else—will not be in good shape.  Luxury homes and hotels do better in times of prosperity.

Good point, Mark. Great that upscale housing is being put on the market in downtown, but now the finished product couldn’t have come at a worse time. Of course, you can’t blame the developers and investors for that. I do believe, though, that the economy will turn around. I think it will take several years for the housing market to right itself, but I am optimistic that the damage to downtown’s housing market will be minimal at worse.

You can’t blame it on Jackson, either.  The same thing happened with the Empire State Building.  It had the bad luck of opening right at the height of the Great Depression, so even though it was prime real estate, it took decades to fill.

Pops/David or anyone else in the know,

How much is a hotel room going for at the King Edward and when will reservations begin to be taken?

The room rates will range from $125 t0 $175, depending on dates, type, etc.  Actually, I’ve been pushing for higher rates, but the Hilton is not receptive.

The construction will be completed in October.  I’d anticipate a soft opening during that month or early November to get the kinks out before serious commitments are made.  I really don’t know when the Hilton will officially start allowing room reservations, though we are already working on numerous events slated for 2010. 

I’ll try to post another update next month.

David Watkins
Watkins Development, LLC
King Edward Revitalization Company LLC

Also, don’t worry too much about the market for the apartments.  Yes, it really, really sucks.  The financial and capital markets and the single family housing markets are in chaos right night, for sure, but will obviously come back over time, (and, perhaps not as long away as some might think, given the impact of the stimulus programs).

Moreover, the pent up demand for downtown housing is still significant, the particular interest in King Edward and Standard Life has NOT waned, and we are still working on a very long prospect list that will be converted to leases in the next 2 to 3 months (we’re waiting until around 6 months before leasing date, so says HRI partner).  I expect the King Edward apartments to be fully leased up by the end of the year, long before our original projection.

David Watkins

How is the interior coming along?  I can’t wait to get an idea about what the lobby and restaurants will look like.