Two months ago, a group out of San Antonio bought up the $32 million and somewhat-tattered note owed by the owners of the Metropole Apartments at 3616 Richmond (between Edloe and Buffalo Speedway). But Lynd Residential Properties and McCombs Enterprises weren’t interested in collecting payments — they foreclosed on the property right away. And now they’re hoping to sell the 289-unit property — for more than $40 million. Globe St.‘s Amy Wolff Sorter explains politely how it came to this:
Metropole’s story begins in 2005, when Cambridge Development acquired a vacant office building with plans to convert it into living space. Cambridge Development finished its work in 2007, creating a luxury high-rise multifamily complex right around the time fundamentals began to weaken. Cambridge Development brought the asset to market in late winter 2008. Metropole was under contract several times but never made it out of escrow.
. . . and the new owners swooped in at the end of last year. They tell Sorter they’ve already brought the occupancy rate up from 75 percent to “the low 80s,” with rental rates of approximately $1.50 per sq. ft.
- 289-Unit Metropole Comes to Market [Globe St.]
Photo: Metropole
At least the building is being utilized now.
It’s good location considering Greenway and the amenities that are close. Also adding that the light rail will eventually be at it’s front door could help. I think that was part of the reason it was good idea to buy the building and convert it in the first place.
This building had been informally marketed for a very long time. I don’t remember what the owners wanted initially, just that it was way too much.
From kjb434:
Also adding that the light rail will eventually be at it’s front door could help.
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Who are you and what have you done with kjb434?!
RWB,
I still believe the LRT to be complete waste of money for what it’ll accomplish, but reality is that some people will use it and it makes a good sales pitch when your apartment/condo is adjacent to the line. Just look at how much the multi-family market has built up from Montrose to Wesleyan on Richmond. They new the land prices would go up after the line was put in place. Imagined if developers would have developed along Main St prior to the construction of the existing line?
Hey pro-rail folks.
I just found out that the FEIS was just published. The next step is getting a Record Decision by the FTA. METRO is estimating that shovels will be in the ground a year from now.
We’ve had the conversation about trains before and while it may be an incentive for some, it’s not an incentive for others. Some get used to the whistles. Some do not. And of course there is the mess with construction. So that is not an incentive to buy a large complex at this point that is probably overvalued. If what is beginning to happen in Los Angeles, as in the bottom didn’t fall out but is about to, is any indication, it is definitely not the time to buy large commerical properties of any kind. The fire sale will be announced soon. I feel for those who live along Richmond. It is going to be an absolute mess for some time.
“I feel for those who live along Richmond. It is going to be an absolute mess for some time.”
That’s for sure. All that pie in the sky blathering about how the dangertrain was going to revitalize downtown along the rail line was all smoke and mirrors. Take a look at how many shuttered businesses there are along S. Main. The money that was blown on a hyperexpensive mode of transportation could have provided for uber-elite boutique diesel-electric hybrid shuttles ferrying people in all manner of directions the market demanded. This method of transportation also would’ve been able to evolve with changing demand instead of being static, while producing stray current damaging adjacent infrastructure. In addition to being able to pay for boutique shuttles catering to those that “want” to ride public transportation, the amount of $ blown on at-grade rail would still leave plenty left to fund and maintain diesel-electric hybrid buses catering to the large segment of the population that actually depends on public transportation (which Metreaux ignores).
If mayor Parker accomplishes anything in office, dismantling Metreaux and replacing the entire organization will be her lasting legacy…. aaaannnnd, let’s hope she’s not one of those politicians who is only interested in what their “legacy” will be. True leaders do what is necessary and if a legacy is left behind, so be it.
CK,
Do you know anything more about the lawsuit between the TMC and METRO over the stray current damages? I totally forgot about that.
I haven’t heard much on that lately either. It’s a major liability looming down the road that Metreaux keeps trying to cover up. The amount of funds wasted on this whole nightmare just boggles the mind. This city could have absolutely killer transportation in place now and for decades to come, if we actually had thinking individuals in charge, instead of the corrupt organization we have now. Parker’s got her work cut out for her getting rid of the slime. At grade rail is a joke, an expensive one.
This city could have absolutely killer transportation in place now and for decades to come, if we actually had thinking individuals in charge, instead of the corrupt organization we have now.
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Interesting how Bill White didn’t have a problem with it. And wants to be governor.
As for Annise Parker no doubt she will prove to be the demise of Metro given the expected level of people she intends to appoint to “her” board who of course will override the county members of the board and most likely they, and she, will guarantee that Metro will never see another dime of federal money. And without that federal money, there is no rail. Of course we may also not have any bus service either. But, well, walking is good for you, you know?
In the meantime, no maintenance money has been applied to Richmond Ave. or the parallel streets. Soon Colquitt will be a dirt road.