Report shows Lawrence sets new record for apartment construction; more than 1,000 apartment units set to open in city

The boom you heard in September was Lawrence exploding with new apartments. We have been reporting all year about new apartment construction in Lawrence, but a new report from City Hall delivers a nice, easy to understand number: For the first time in its history, Lawrence has built more than 1,000 new apartments in a single year.

September is the month that pushed Lawrence over the top. The city recently released its building permit report for September and it included $40 million worth of new apartment construction. Permits were pulled for two projects that we have been reporting on for quite some time: The Links at Lawrence apartment development just east of the Rock Chalk Park sports complex and a new set of apartments being constructed along the Alvamar golf course.

Through September, the city has issued building permits for 1,191 apartment units. Never has that number been so high. The new total beats the record of 972 apartment units built in 1996. And don’t forget, this year’s number is just through September, so it’s a lot like a credit card bill in November — subject to grow.

The Links project was the big one. In case you have forgotten, it is an apartment development that will be constructed around a private nine-hole golf course that is just east of the Rock Chalk Park sports complex. Arkansas-based Lindsey Management has these types of developments around the country where the selling point is your monthly rent includes unlimited greens fees on the golf course. The company in September pulled building permits for 30 apartment buildings, plus a clubhouse. All 30 apartment buildings are three stories tall and have 18 to 24 living units apiece. The city issued permits for construction totaling $26.4 million.

The other big project was an upscale residential development along the Alvamar golf course, which has been bought and is being redeveloped by a group led by Lawrence businessman Thomas Fritzel. A project labeled Alvamar Apartments pulled permits for three apartment buildings, each four stories tall with 56 living units apiece. Each apartment building also has underground parking. The city has issued permits for $14.4 million worth of construction for that complex. And, remember, that won’t be the last of the building that occurs around Alvamar.

Between them, the two projects add 762 new apartment units to the city. To put that in perspective, the city has only had one year in it history where it ever issued permits for more than 762 apartment units That was in 1996 when 972 were issued. But, remember, that was over the course of an entire year. This happened in one month.

The Links project and the Alvamar project rank No. 1 and No. 2 on the city’s list of largest building permits for 2016. It is worth remembering that the city’s list doesn’t include any building projects on the KU campus, since those projects are permitted by the state rather than the city. It is worth noting that all of the top 5 projects on the city’s list are apartment projects, although one is more a retirement complex than a traditional apartment. Here’s a look at the top 10:

• The Links at Lawrence Apartments, 5400-5401 Rock Chalk Drive: $26.48 million

• Alvamar Apartments, 1575-1675-1775 Birdie Way: $14.4 million

• West End Apartments, 5400 Overland Drive: $14.22 million

• Village Cooperative retirement complex, 5325 W. Sixth Street: $8.35 million

• Bauer Farms Residential, 4541 Bauer Farm Drive: $6 million

• Maple Street Pump Station, 547 Maple St.: $5.93 million

• Pinckney Elementary School additions and renovation, 810 W. Sixth St.: $5.7 million

• Bethel Estates of Lawrence, 2140 E. 25th Terrace: $5.51 million

• 800 New Hampshire multifamily addition, 800 New Hampshire: $4 million

• KU Tennis Facility, 6100 Rock Chalk Drive: $3.965 million.

There are a few other numbers of note in the report:

• Perhaps Lawrence now is routinely going to be a $200 million city. Last year was the first time in the city’s history that more than $200 million worth of building permits were issued by City Hall.But it looks like it won’t be the last time. The September report shows the city has issued permits for $190.6 million worth of construction. That puts the city on pace to top the $200 million mark in 2016.

• Lawrence is posting record numbers without a lot of activity in what used to be the city’s bread-and-butter industry: Single family home construction. Through September the city has issued 128 permits for single family or duplex construction. That is actually a slowdown from the 181 permits the city had issued at this point in 2015. Still, this year’s showing is a little above average. The five-year average at this point in the year is about 111 units. The city’s single-family housing industry, though, has not bounced back from the housing bubble of the 2000s. As we have been reporting, real estate agents report the number of homes for sale is getting tight, so we’ll see if 2017 is the year that single-family builders start to pick up the pace.

Or, maybe we all will just live in apartments. Apartment builders tell me the majority of these units aren’t being built for students anymore. The tenants are people who traditionally would be buying a starter home, or perhaps downsizing to a smaller retirement home. There are many people who are choosing to pass on home ownership for whatever reason. Whether that is a trend that continues is uncertain. What is certain is that the look of Lawrence is being changed dramatically. In the 1990s and early 2000s it used to be that single-family home construction routinely outpaced apartment construction. But that is no longer the case. Now, it is not even a contest. From 2016 to 2012, Lawrence has built 2,279 apartments compared with 665 single-family homes.

I’m not saying that is a good or a bad change. But it certainly is a change, and one that will leave its mark for a long time.