Those of you waiting with bated breath for the renovation, redevelopment, or removal of the 1950s-era office building at 3400 Montrose Blvd. (across Hawthorne St. from the Montrose Kroger): keep on bating. The company that bought the vacant 10-story building last September has told its 500 Israeli investors that its operations in Israel and Houston are both “in dire financial straits,” according to a report in Israeli newspaper Haaretz.
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Investors may lose $9 million they invested in U.S. real estate, the company warned in an email. The newspaper quotes the manager of the investment firm’s Israeli sales office as saying, “We failed as a company. The assets need to be sold off.” But the report also says that a firm called the Hagshama Fund has offered to take control of Global Paragon at a reduced valuation, “promising to invest another $7 million in renovating the Houston properties.” Global Paragon’s Houston investments also include The Courtyard apartments at 950 Villa de Matel, just north of Country Club Place in Houston’s East End.
- Hundreds face loss in Texas real estate [Haaretz]
- Previously on Swamplot: Redo Plans for the Office Building at 3400 Montrose Blvd., Will 3400 Montrose Rise from the Dead?, Stone Panel Leaps to Montrose Blvd. Sidewalk from Former Skybar Balcony, Everybody Out: The Ghost Town at 3400 Montrose, Comment of the Day: A 3400 Montrose Blvd. Inspection Report, Why Scott Gertner’s Skybar Is Leaving the Montrose Sky, Scott Gertner’s Skybar Closing, May Take the Whole Building with It
Photo: Candace Garcia
Rather interesting because Alon Solomon recently purchased another property and they certainly do not seem to be having such financial problems, seeing that they are looking to buy others. I wonder if they may not be just screwing over their absent investors. Mr. Solomon is based here in Houston, operating out of a north loop office near Ella Blvd.
There is some inappropriate joke to be made about Jews and money here…
Whoever takes this building on will likely have to tear it down.
I hope they sell it and its purchased by someone that will put the property to good use either by renovating the building or demolishing it and building a new highrise.
If only it weren’t considered anti-semitic to make anti-semitic jokes. Oh well, save ’em for the country club.
you figure they would have saved money with all of the low overhead.
The building can be renovated. Just needs an owner that knows what they are doing! Planning was on going until recently.
Those that believe that 3400 Montrose can be renovated in a commercially viable manner are mistaken.
There is not a single electrical, plumbing,HVAC component, elevator or life saftey system which could be reused or renovated for current codes.
The life safety and ADA code requirements alone would most likely put this property with a per square foot cost out of consideration as a commercial development
Does any one have a way to contact the owners? I am interested in lease/financing of the building and don’t want to go through the broker if I can go direct.