These big Boise buildings were approved, but building has not begun. What happened?
With construction costs reaching new heights, some of downtown Boise’s future tallest buildings aren’t going up just yet.
Ball Ventures Ahlquist’s 13-story, two-tower office and apartment building on the northeast corner of North 4th and West Idaho streets is on hold for at least six months.
And Oppenheimer Development Corp. planned to begin construction this summer on its 27-story tower on the southeast corner of North 12th and West Idaho streets, but hasn’t begun and is now considering reducing it to 26 stories. What was once planned to be Boise’s tallest building might not become that.
Both are delayed because of soaring costs. The developers hope changes will bring costs down.
The slowdowns are turning into a downtown trend. As the Idaho Statesman previously reported, Hovde Properties delayed its planned 19-story building on 6th Street between Front and Broad streets.
“As we went through, it just kept going up and up and up,” Ball Ventures Ahlquist CEO Tommy Ahlquist said by phone. “We’re like, ‘Hey, the margin for doing this, it just keeps going down, and the risk goes up, because the cost kept going up.’ … We think we’re just being good, responsible partners with our dollars.”
Ahlquist thinks a major recession is coming. He believes waiting six months could result in lower construction costs. If costs come down 8% to 10%, he said, that would be “a big deal.” Once the project is more financially feasible, Ahlquist plans to resume work.
For now, the lot at 200 N. 4th St. is nothing but dirt. The previous building, a three-story Idaho Central Credit Union branch, was demolished. A chain-link fence surrounds the site.
The 11-story north tower would be residential, and the 13-story south tower would be for offices, according to previous Idaho Statesman reporting. The building is planned to have about 125 apartments, 420 parking spaces, office space and commercial space on the ground floor.
Mayor Lauren McLean broke a 3-3 city council tie to approve the project. Neighbors resisted the building with concerns about its height.
Ahlquist said underground utility work and building the foundation might be done while waiting. But the rest of the construction likely wouldn’t happen until winter at the earliest.
Ahlquist said rents haven’t kept pace with construction costs. That’s part of what’s making it tricky for the project to work out financially.
“There’s going to be a recorrection,” Ahlquist said. “So as it corrects, you just want to time projects as best you can with that.”
BoiseDev first reported Ball Ventures Ahlquist’s pause.
Oppenheimer, meanwhile, originally planned to begin construction on its 27-story luxury apartment building at 1111 W. Idaho St. this summer, according to previous Statesman reporting.
Oppenheimer is considering shortening the building by taking out a floor of parking.
“The cost of construction is unprecedented right now,” Oppenheimer Development Corp. Vice President Jeremy Malone said by phone. “We’re still working diligently on getting the cost within budget. We feel fairly comfortable we’re going to be able to achieve that.”
Malone said he hopes the choice between 27 and 26 stories is resolved “in the next couple of weeks” and construction can begin this fall, a few months after originally planned. He said construction would likely take between 27 and 30 months.
Malone cited the cost of materials and labor. In the past 18 months, costs have risen 20%, he said.
“It’s a challenge because these projects, while exciting and obviously will make a huge impact on the Boise skyline and a big difference to our community, making sure the economics of these work is important,” Malone said by phone. “While we’ve seen a very slight delay in the timing, it’s been worthwhile to reevaluate the market, the project. It’s exciting that we’re still moving forward and finding solutions.”
Oppenheimer has partnered with Chicago developer White Oak Realty Partners and Cleveland-based Ponsky Capital Partners. Malone said the developers view the project as a long-term investment in Boise, which helps justify higher costs.
The building is planned to have 8,600 square feet of retail space on the first floor and 298 residential apartments made up of studios, one-bedroom and two-bedroom units. If it’s 26 floors, there would be six floors of parking with 330 spaces, and amenities like a pool on the top two floors.
Previous plans called for the building becoming the tallest in Boise, but updated plans are for the building to be shorter than the Eighth & Main building, regardless of whether it’s 26 or 27 stories.
Malone said he believes it would be the nicest building in the Northwest because of the design and amenities. He anticipates rent costing more than other newly built downtown apartment buildings.
“It is going to be pretty spectacular,” Malone said. “It’s one heck of a good-looking building.”
