Foreclosure looms for Allegro

[broNat]

Foreclosure looms for Allegro

The Allegro Apartments, at 3460 14th Street NW, offer easy access to the Target shopping center, the Columbia Heights Metro Station and Rock Creek Park. On the ground floor is a new restaurant, Thai Tanic II, modeled after a popular Logan Circle spot. Inside are two expansive courtyards, a gym, lounge and underground parking.

http://washington.bizjournals.com/washington/blog/breaking_ground/2009/11/foreclosure_looms_for_allegro.htm

[jrenaut]

Try this link. Yours didn't work, Bronat.

[domrep]

So what does this mean? They are shutting down the entire apartment complex or what?

[steveg202]

The complex will either have debt written down or a new owner who purchases the complex for less than is currently owed. Either way it allows for lower monthly debt which allows for lower rents to make a profit. All will benefit from a fully leased building.

[broNat]

According to the full article the property will be auctioned off Nov. 18 by Alex Cooper Auctioneers. The debt owed is $74M and the property is 58% percent leased. The debt was personally guaranteed by the developer and is owed to iStar FM Loans LLC.

All of the larger most speculative projects in Columbia Heights have gone belly up and as looked for public bailout. These same projects were also done with the least about of tranparency, planning and community involvement and were not good community fits.

I remember after finally pushing the developer and the Council Member to hold a community meeting concerning this project, the developer was asked about unit sizes which supported families and affordability. He dismissed these questions saying this project was about his matter of right not what fits the community or community planning efforts. The Council Member's bailout bill this project never got out of committee unlike the View14 bailout. Greed and backroom dealing has produced projects which are less sustainable and financially viable than those with at least some real community input and planning. And points to why the quality housing stock for families is hard to come by.



.

[domrep]

[GforGood]

"All of the larger most speculative projects in Columbia Heights have gone belly up and as looked for public bailout."

Which ones are you talking about?

[broNat]

Allegro at the old Giant site.
View14 at 14th & Florida
Empty lot on 14th between Chapin & Belmont.

[GforGood]

So how's that "all" (unless you have a good definition of "most speculative")?

Second, have View 14 and "the emply lot" thing sought "public bailout"? Not saying they haven't, just haven't seen any news stories on those ones.

[broNat]

Those are all of the larger "most speculative" projects in CH that I know of, there may be others. View 14 got a $5.7M bailout. And legislation was submitted for Allegro, but did not get out of committee. And the lot did not get a bailout offer that I know of and of course we got a empty ugly lot. I consider the projects speculative because several articles ran before they went in the ground warning of the glut in the market. Both developers dismissed the warnings and even asked for zoning waivers to expand the size of their projects. The same developer that did View14 got over their heads attempting to do these large projects with little to know experience on projects of that size. The all clearly attempted to time the market and make a quick buck flipping condos.

I don't consider Highland Park and Park Place speculative although the developer asked for a bailout having attempted to time the market. My point is that projects done via a transparent community involvement process are doing better that projects done via traditional political dealing. Or projects done in more of an "equitable development" model are doing better in CH than bubble driven projects.

[New2CH]

Call me crazy, but I would put the more reasonable (and fact-supported) formulation as, projects that had the bad luck to be started, or maybe just barely completed, during the biggest credit crunch combined with the biggest nation-wide real estate bust of our lifetime, are, unsurprisingly, experiencing the same misfortune as a large percentage of development projects all across the country, regardless of whatever BroNat's latest conspiracy theory is. Ignoring that reality is, at best, disingenuous.

[broNat]

Bad luck applies more to projects like Ellwood Thompson and local retailers and small businesses. These guy played a speculative political and community development hand having a good understanding of the risks.

[New2CH]

BroNat, you may do your homework, I'll grant you that, but until you stop completely fabricating lies when it suits you (aka the wine bar "cabal"), why should anyone believe ANYTHING you say? Unfortunately, you've undermined your own credibility here, so it's impossible to know when you are telling the truth, as you sometimes do, or just fabricate something based on nothing but your own assumptions rather than facts, which you've also PROVEN to do on multiple occasions. It's kind of a shame. And I simply can't take ANY argument seriously that doesn't at least ACKNOWLEDGE the indisputable nation-wide economic, capital, and real estate crisis as part of the issue with what is happening with these projects. It may not be the WHOLE story, sure, but to ignore it, once again, undermines your credibility.

[broNat]

As usual, rather than face the fundamental issues being raised, put the messenger on trial. The cause of greater transparency and appropriate and honest community involvement in such issues is worth unfounded attacks on my credibility. I would only suggest you do your homework before jumping in as someone elses foil.

[ma1924]

BroNat, so verbose, so many ten dollar words which at times come across as a convoluted mess. Just curious as to your education. Product of DC public schools?