Tweaking lots sizes to meet consumer demand

Not all new urbanist developments start with strong sales. Due to their market, product mix and/or lack of amenities and maturity in the first phase, many projects struggle to gain momentum. Developers say it is important to be flexible, adjusting the project based on what sells. That approach takes advantage of a traditional neighborhood development (TND) strength — the ability to accommodate a wide range of housing types and lot sizes in close proximity. “You must constantly reevaluate your plan, listen to your buyers and give them what they want,” says Mary Allison, a partner in Wilson Development, which is building Brodie Creek in Little Rock, Arkansas. In the 18 months since the 700-acre TND opened, 31 homes have been sold and another five lots optioned. Sales activity at Brodie Creek, designed by Nelessen Associates of Princeton, New Jersey, continues to be slow although the walk-through traffic is strong. Most homes are custom, and few are built on spec. The first neighborhood, grouped around a crescent-shaped green, contains many lots from 50 to 60 feet wide. Allison noticed that the larger, corner lots seemed to be in greater demand. Brodie Creek was approved as a planned residential development, a zoning category in Little Rock that allows changes in lot configuration as long as overall density is not exceeded. Allison reconfigured lots on the neighborhood edge, creating some wider lots. To maintain a similar overall density, six narrower lots were created between 36 and 44 feet in width. This change not only provides the first phase of Brodie Creek with a wider range of types, but allows Wilson Development to test the market on narrower lots that will be more prevalent in the next phase. “The city said, ‘prove that it works and it is marketable,’ and we’ll let you do it,” says Allison. The immediate effect of this platting change in January, 1998, was that all six narrow lots were optioned to builders within a month, and three of those lots have been sold. The narrow lots were sold for $22,500 and $23,000, and will create a new price category of finished home in Brodie Creek. Home plans based on designs by Looney Ricks Kiss, first constructed in Harbor Town (Memphis, Tennessee), will be built on the narrow lots (see photo). Allison projects that the finished, 1,800 square foot homes will sell for about $170,000. Capturing a new market segment About 150 miles away in Springdale, Arkansas, near the national headquarters of Wal-Mart, a 425-acre neotraditional development called Har-Ber Meadows has been selling homes for nearly two years. Har-Ber Meadows’ “standard” homes, on 75 by 100 foot lots on alleys — priced from $134,900 to $175,900 — are selling relatively slowly, because they are priced too high for the market. About 24 of these homes are sold and occupied, says Lucy Bugea, director of sales. By contrast, the “village” homes on 30 by 100 foot lots — selling from $102,900 to $147,900 — are moving much more quickly. Only 16 homes remain out of 54 total. Moreover, Bugea found that many senior citizens were interested in the size and price of the village homes, but wanted a single story unit with attached garage. Based on this information, Har-Ber Meadows recently reconfigured 42 “standard” lots into 70 “cottage” homes, a new category. These single-story homes served by alleys are on lots averaging 50 feet by 100 feet, and will sell for $117,900 to $134,900. Square footage ranges from 1,525 to 1,818. Construction of these homes has been held up while alleys are built. In the meantime, three have been sold and another six optioned. The master plan and architecture is by EDI Architecture in Houston.