Episode Summary
- If you're building a bike network consider two keys: make the network interact with cars as little as possible and give people a place to park their bike securely. In our case this week, not just the traditional bike rack, but maybe something even more secure?
- Underground networks might be better used to help with supply chain logistics
- The condo association of the future includes specific language to allow for short term stays and offers (or requires) management making it a turn key investment property solution for owners.
Links To Sources
Company named from the Japanese word for 'urchin' provides secure, place made bike parking. (landing page)
Switzerland's underground logistics network. (3 min read)
$76m for airbnb condos in Miami, FL (1 min read)
Episode Transcript
Episode 74 - Patterns of Development
Urchin, Network, Condos
This is patterns of development.
Hey everyone. I’m Kyle Gulau. On this show, patterns of development, we take less than 10 minutes each week to deconstruct what's going on in real estate, architecture, and urban planning.
Our Urchin for the week is from New York start up Oonee. Which is Japanese for Urchin.
Oonee provides a network of protected parking for urban bike riders.
To quote the Oonne website,
"From an ecological and traffic planning standpoint, increasing cycling and micromobility is absolutely crucial for the future of urban areas.
Cycling can help cities reduce reliance on automotive transport and reduce emissions while improving quality of life and economic mobility.
Although many cities across the globe have invested heavily in cycling infrastructure, secure parking has largely been ignored. In the U.S., almost no residents have access to cycle parking facilities at or in proximity to frequent destinations."
This is Kyle again. That's right.
If you're building a bike network consider two keys: make the network interact with cars as little as possible and give people a place to park their bike securely.
Oonee is focused on that last part. According to data from their website, In New York, 25 percent of all households have experienced bike theft. Nationally, many experts have estimated that up to half of all cyclists experience theft. I have personally experienced bike theft. So this product and the problem behind it really resonate with me.
Building a network in today's interconnected world seems like something we take for granted. Who isn't building a network?
A reason you build a network is take advantage of network effects. Network effects is a concept stating that the more people that use a network the more valuable it becomes. So as Oonee looks to build a network of secure bike storage they know that the more people that use it, the more valuable it is, which means they can add more stations, which means that more people will use it.
That's an above ground network. In Switzerland, Cargo Sous Terrain is ready to start its first tunnel. Think Elon Musk's Boring company but with a focus on autonomous cargo delivery and 99% less ego.
The Swiss parliament passed the necessary legal framework to enable the project (remember the formula for any project Money+Permission+People) this is the important permission part for the project to commence on August 1st.
According to the website,
"Cargo sous terrain follows a similar principle to that of an automatic conveyor system. Automated, driverless transport vehicles which are able to pick up and deposit loads automatically from the designated ramps and lifts travel around the clock in the tunnels.
The vehicles, which travel on wheels and have an electric drive with induction rails, operate in three-track tunnels with a constant speed of around 30 kilometers per hour. The goods are transported on pallets or in modified containers. Thanks to refrigeration-compatible transport vehicles, the transport of fresh and chilled goods is also possible. Attached to the roof of the tunnel is a rapid overhead track for smaller goods packages."
Last up this week, back above ground, and away from the mountains and to the coast of sunny Florida.
Developers of District 225 have received construction funding, $76 million of it, to build Airbnb condos in downtown Miami, FL. The 37 story, 343 unit condo building has been fully presold and construction is underway according to the developer.
According to the article in Real Deal, "The units will be delivered fully furnished and finished, so buyers can rent them out easily, and one of the partners in the deal will manage the short-term rentals, which will be listed on Airbnb. Amenities for the property will include indoor racquetball and basketball courts, a rock climbing wall and rooftop pool deck."
Let's put our development hat on for a moment.
Build a building, and sell the condos. That model allows for you to get the money out of the deal quickly build building, sell units. Go to the next one.
This approach of building a building and structuring the condo association to allow for short term rentals, which isn't a common thing, makes this project interesting. What's even more interesting is that they (the developer) has a partner that will manage the property and the short term stays.
No wonder the building is pre sold. "Hey, buy this condo. It's furnished." Oh you're not here? We're happy to rent it out for you for a fee and help you make some extra money on what likely is your vacation home.
So the developer gets the cash out of the deal but! They also still get some of the longer term cash flow benefits because they're managing the units and the property.
The owners in the association are all of a similar mind set...hey if I'm not here, I'd like to rent this. This could be us seeing a glimpse of the new condo association of the future.
Which leads us to our patterns of the week:
- If you're building a bike network consider two keys: make the network interact with cars as little as possible and give people a place to park their bike securely. In our case this week, not just the traditional bike rack, but maybe something even more secure?
- Underground networks might be better used to help with supply chain logistics
- The condo association of the future includes specific language to allow for short term stays and offers (or requires) management making it a turn key investment property solution for owners.
That's all for this week. Talk to you soon.
