Seemingly undeterred by reports of a softening condo market, Frankel & Giles plans to unveil the 116-unit project Prairie District Lofts in early 2007. The building, which is located at 1727 S Indiana Ave, is already a rental loft building as many people likely are aware.
Units will be priced from the mid-$200s to the mid-$400s. We’re told we should have more details on this project later in the week. The photo above was taken of one of the lofts in its rental condition and doesn’t necessarily reflect how the units will look as condominiums, although it does demonstrate some lovely lofty features (exposed brick walls, timber rafters), doesn’t it? The timber is quite a find in the market for new lofts these days, as most of the old timber buildings were converted years ago. The building once housed a commercial photography company.
Terrific – another Loft Project KG can mess up.
I wonder how many tenants will buy their units, either “as is” or “upgraded.” Any guesses, anyone?
A good guess: “Not many.”
The first meeting with the developer was a raging shitstorm. They had to terminate the meeting because they could no longer keep it under control. No substantive answers, just a lot of posturing and some sleazy banker talking about his trip to Vegas and how he’ll get everyone a great mortgage. Uh huh.
And the ‘upgrades’ blow azz. Nice pock-marked granite, cheapo cabinetry with router burn marks, and appliances that were too big to mount flush. NEXT!
Anan2 Is there a way I can get a hold of you to talk privately about this. I would beware with this developer (personal experience) and a situation where the developer is going to paint and walk. Some Recommendations:
1. Talk to City Planing and Zoning on what the requirements of the developer are so you better understand impact on you.
2. Make a list of the problems that exist with the building – large and small issues.
3. Work with the city & Alderman (a laugh) to to require the developer hold 5 year escrow to cover things he may not do (like facade, roof)
4. Review developer & city plans for multiple inspections of the building facade, roof, interior, structure, etc.
5. Current Owner of building – see if the group can get a copy of existing inspection records and outstanding repair requirements.
6. Review the proposed Decs and By-laws (new
developer will have to record them as part
of sale contracts) as to the plans for
turnover and what %. You do not want him
turning the building over too soon in this
case. this will allow better idea of
problems with building before Association
Turnover.
7. Commercial Agreements – Have your attorney
carefully review what the commerical space
agreements allow. You do not want to
get screwed here. Ensure he is also not
allowing himself to grant easment changes
on the owners behalf prior to turnover.
I bought a loft from the same developer and let me tell you it was a nightmare. The quality and committment to completion of all phases was horrible. Just a sample of issues:
A. Facade – immediately just after the time of Association handover, we found we had bad facade problems that cost us a boatload. The developer hid behind an attorney and would not pay to complete the work he should have done in the first place. We had a large special assessment to do the work.
B. Structure – Around handover, we found out we had structural problems in timber portion of building with sagging. Developer shows up on a saturday with some yahoos who are trying to put in concrete footers, and weld in additional supports. Unbelievable.
C. Emergency Lighting – How can a developer forget to put in emergency lighting and how can the city even let them have an occupancy permit? Well, that happened to us. We ended up having to pay for the work.
D. Easment Issues – developer talked our board into signing some easment arrangment that had them build a second devleopment next door. What a snowjob…this left the two associations fighting and $50+K in lawyer fees because we could not charge them for maintenance, he did not build garages he was suposed to provide, etc. A mess all around.
I could go on, but I won’t…a lesson learned.