Homeowners,
We wanted you to have an update on our progress and the status of the Paces Green assemblage. We continue to work diligently to close all contracts in the SOBU assemblage by the stipulated closing date. As we move forward on that project, the outcome and details are clearer.
We realize it is difficult to wait, particularly with limited information. We are asking for your patience as we move through this unique and challenging time. The realities of funding, private equity, the residential and commercial market and the general economy has created an environment that requires our creative our focused attention. We do hope that we will be back to you with more details very soon.
If you click this link you can read the full update on the Sobu Flats Assemblage.
Monday, July 6, 2009
Thursday, April 23, 2009
Update for Sobu Flats
Paces Green Homeowners,
The following is the post that I have added to the Sobu Flats Blog as of yesterday. ...........
Dear Homeowners,
We would like to ensure all homeowners that the SOBU assemblage team is working hard to fulfill our goal to close every unit by November 3, 2009. We are dedicating 110% of our energy to obtaining financing on the SOBU parcel and development loan. When we began the assemblage, financing for projects of this magnitude was abundant, and many financing avenues were available. Due to the global financial mortgage crisis, money sources have all but disappeared, and banks have stopped lending on most land and new-development projects. Private equity, which once was readily available at the beginning of this assemblage, has disappeared due to investors refocusing their efforts to non real estate ventures. The single family residential market has taken a huge hit, home prices have decreased and the condo market has been negatively impacted even worse. The stock market has taken huge swings up and down, mostly down, while banks continue to fail. The presidential election has come and gone, and the government stimulus package has been passed and placed into action. When we set out to assemble SOBU, we knew it would be no easy task, but did not predict the magnitude of the challenges that our economy would face, which leads us to this communication. Communication has been hard for us to disseminate to the masses due to the tumultuous market swings and bank closings—we could hardly keep up with the information ourselves. Every time we found a solid financier, they disappeared just as quickly as they appeared. In the past few weeks, we have progressed from having all financing pulled from the buyer, Cartel, to having several lenders and funds showing extreme interest in investing in the deal. Due to the stock market stabilization and residential real estate market nearing bottom, in addition to the new President in office, government stimulus plan in action and banks showing earnings, lenders are being less restrictive with loaning money. The buyer has tweaked his development plans to build a product that the banks would be more eager to fund: apartments, parking garages, boutique hotels, spa, theater, retail space, and office condos (plans are able to be viewed at our office by appointment). With all of the obstacles we have faced in the past 6 months behind us, we feel it is safe to say that we are now on a downhill battle, and the most challenging feats have been won. Financing is not completely secured, but we are close to having it back in place. Once more, we want to let all the homeowners know that we are putting 110% time, energy and effort into keeping this deal alive, and are working hard to ensure the closure of all 132 units, as planned. We will keep you abreast of any important information, via the blog, that we feel is worthy of your time. Please feel free to call Josh on his cell @ 404-547-3622 with any questions.
............I know that this does not answer all of the homeowners questions at this time, but I don't have the answers myself at this time. Progress is being made, and we hope to be able to pass on positive information in the near future. Thank you to all that have offered your help, and to all that have helped in past few months!!!
Josh
The following is the post that I have added to the Sobu Flats Blog as of yesterday. ...........
Dear Homeowners,
We would like to ensure all homeowners that the SOBU assemblage team is working hard to fulfill our goal to close every unit by November 3, 2009. We are dedicating 110% of our energy to obtaining financing on the SOBU parcel and development loan. When we began the assemblage, financing for projects of this magnitude was abundant, and many financing avenues were available. Due to the global financial mortgage crisis, money sources have all but disappeared, and banks have stopped lending on most land and new-development projects. Private equity, which once was readily available at the beginning of this assemblage, has disappeared due to investors refocusing their efforts to non real estate ventures. The single family residential market has taken a huge hit, home prices have decreased and the condo market has been negatively impacted even worse. The stock market has taken huge swings up and down, mostly down, while banks continue to fail. The presidential election has come and gone, and the government stimulus package has been passed and placed into action. When we set out to assemble SOBU, we knew it would be no easy task, but did not predict the magnitude of the challenges that our economy would face, which leads us to this communication. Communication has been hard for us to disseminate to the masses due to the tumultuous market swings and bank closings—we could hardly keep up with the information ourselves. Every time we found a solid financier, they disappeared just as quickly as they appeared. In the past few weeks, we have progressed from having all financing pulled from the buyer, Cartel, to having several lenders and funds showing extreme interest in investing in the deal. Due to the stock market stabilization and residential real estate market nearing bottom, in addition to the new President in office, government stimulus plan in action and banks showing earnings, lenders are being less restrictive with loaning money. The buyer has tweaked his development plans to build a product that the banks would be more eager to fund: apartments, parking garages, boutique hotels, spa, theater, retail space, and office condos (plans are able to be viewed at our office by appointment). With all of the obstacles we have faced in the past 6 months behind us, we feel it is safe to say that we are now on a downhill battle, and the most challenging feats have been won. Financing is not completely secured, but we are close to having it back in place. Once more, we want to let all the homeowners know that we are putting 110% time, energy and effort into keeping this deal alive, and are working hard to ensure the closure of all 132 units, as planned. We will keep you abreast of any important information, via the blog, that we feel is worthy of your time. Please feel free to call Josh on his cell @ 404-547-3622 with any questions.
............I know that this does not answer all of the homeowners questions at this time, but I don't have the answers myself at this time. Progress is being made, and we hope to be able to pass on positive information in the near future. Thank you to all that have offered your help, and to all that have helped in past few months!!!
Josh
Friday, February 13, 2009
Homeowners Meeting 18th Feb at 6:30pm
Paces Green Homeowners,
Wednesday, 18th Feb 2009 at 6:30pm We have a meeting scheduled for all of the Paces Green homeowners at Cartel Properties office located at: 914 Howell Mill Rd NW # 100, Atlanta, GA 30318.. Any and all questions will be answered by Cartel Properties. This will be an extremely informative meeting, and help understand all the progress that has been made with the assemblage.
Direction from Paces Green are as follows:
Driving directions to 914 Howell Mill Rd NW # 100, Atlanta, GA 30318
5.5 mi – about 14 mins
350 East Paces Ferry Rd NE
Atlanta, GA 30305
1. Head west on E Paces Ferry Rd NE toward Grandview Ave NE 0.2 mi
2. Turn left at Bolling Way NE 453 ft
3. Turn right at Buckhead Ave NE 282 ft
4. Turn left at GA-9/Peachtree Rd NW/US-19 2.9 mi
5. Turn right at Deering Rd NW 1.0 mi
6. Turn left at GA-3/Northside Dr NW/US-41 0.3 mi
7. Turn right at 17th St NW/Bishop St NW 0.2 mi
8. Turn left at Howell Mill Rd NW
Destination will be on the right 0.7 mi
914 Howell Mill Rd NW # 100, Atlanta, GA 30318
Thank you for your time in advanced.
Wednesday, 18th Feb 2009 at 6:30pm We have a meeting scheduled for all of the Paces Green homeowners at Cartel Properties office located at: 914 Howell Mill Rd NW # 100, Atlanta, GA 30318.. Any and all questions will be answered by Cartel Properties. This will be an extremely informative meeting, and help understand all the progress that has been made with the assemblage.
Direction from Paces Green are as follows:
Driving directions to 914 Howell Mill Rd NW # 100, Atlanta, GA 30318
5.5 mi – about 14 mins
350 East Paces Ferry Rd NE
Atlanta, GA 30305
1. Head west on E Paces Ferry Rd NE toward Grandview Ave NE 0.2 mi
2. Turn left at Bolling Way NE 453 ft
3. Turn right at Buckhead Ave NE 282 ft
4. Turn left at GA-9/Peachtree Rd NW/US-19 2.9 mi
5. Turn right at Deering Rd NW 1.0 mi
6. Turn left at GA-3/Northside Dr NW/US-41 0.3 mi
7. Turn right at 17th St NW/Bishop St NW 0.2 mi
8. Turn left at Howell Mill Rd NW
Destination will be on the right 0.7 mi
914 Howell Mill Rd NW # 100, Atlanta, GA 30318
Thank you for your time in advanced.
Tuesday, February 10, 2009
February 10th Post
Paces Green Owners:
1. There has been a certified letter sent by the buyer to all addresses of record to Paces Green owners. If you have not received this letter please call Nan or Taylor immediately.
2. In that letter the buyer asks for a 120 day extension period to be granted from all Paces Green owners. He has been working very diligently on the primary goal - which is to close on the property. Due diligence on deals of this scope take a long time and a lot of money on behalf of the buyer.
3. The buyer needs to have answers from Paces Green owners that state whether they will extend the due diligence period on their contracts or not. If they opt not to extend the period then their contract will be terminated.
4. If the owners grant this period, then the buyer will continue to move forward to get to the finish line.
5. Josh Reeves has been working tirelessly to assist the buyer and his agent with this process on a daily basis. The buyer remains totally optimistic about the viability of this project. We expect a closing in November but we need the cooperation off all owners to make this happen.
6. Josh has been in communication with many owners in the community who are thrilled to sign this extension understanding that the closing date remains the same, and we are definitely in the final stretch, but more time is simply needed for the buyer to conduct all studies, surveys, engineering, etc.
PLEASE CALL THE BUYER'S AGENT - TAYLOR ANDERSON - at (404)805-9898 or call Josh.
Thanks for your patience.
Annie Boland
1. There has been a certified letter sent by the buyer to all addresses of record to Paces Green owners. If you have not received this letter please call Nan or Taylor immediately.
2. In that letter the buyer asks for a 120 day extension period to be granted from all Paces Green owners. He has been working very diligently on the primary goal - which is to close on the property. Due diligence on deals of this scope take a long time and a lot of money on behalf of the buyer.
3. The buyer needs to have answers from Paces Green owners that state whether they will extend the due diligence period on their contracts or not. If they opt not to extend the period then their contract will be terminated.
4. If the owners grant this period, then the buyer will continue to move forward to get to the finish line.
5. Josh Reeves has been working tirelessly to assist the buyer and his agent with this process on a daily basis. The buyer remains totally optimistic about the viability of this project. We expect a closing in November but we need the cooperation off all owners to make this happen.
6. Josh has been in communication with many owners in the community who are thrilled to sign this extension understanding that the closing date remains the same, and we are definitely in the final stretch, but more time is simply needed for the buyer to conduct all studies, surveys, engineering, etc.
PLEASE CALL THE BUYER'S AGENT - TAYLOR ANDERSON - at (404)805-9898 or call Josh.
Thanks for your patience.
Annie Boland
Tuesday, February 3, 2009
February 3rd Post
Paces Green Owners:
The buyer has until February 11th, 2009, to decide whether to move forward and pay additional non-refundable earnest money, or to walk from the deal. Everything looks very positive and Josh Reeves is in contact with the buyer and buyer's agent daily. They remain optimistic about this deal. However; February 11th will be the true test. We will get back to you shortly after that date at which point we will know of the buyers intentions.
Thanks,
Sobu Team
The buyer has until February 11th, 2009, to decide whether to move forward and pay additional non-refundable earnest money, or to walk from the deal. Everything looks very positive and Josh Reeves is in contact with the buyer and buyer's agent daily. They remain optimistic about this deal. However; February 11th will be the true test. We will get back to you shortly after that date at which point we will know of the buyers intentions.
Thanks,
Sobu Team
Monday, November 10, 2008
Answers to questions submitted by PG
1. Is it accurate and/or safe to assume that Cartel Properties never agreed to eliminate the contingencies related to zoning and SOBU since they are again present in the new contract extension document?
ANSWER: Since the inception of our deal, five (5) other parcels have been added to the project that Cartel is undertaking. The contingency that we’ve seen added to the contract is to reflect the time/effort/money it is taking to make the assemblage happen with the City of Atlanta. The other five (5) parcels are under contract so this should not be a concern.
2. Is there any reason why we were never provided with an executed assignment/special stipulations agreements as reported in many emails received by Bruce?
a. Is it safe to assume that they were never accepted as Bruce reported?
ANSWER: Moving forward, all of the signed agreements will be to you by the COB on Friday, November 14. There was some confusion regarding prior documents relating to whom, exactly, was to send them out. Keller Williams and Cartel can promise that this problem will not happen again. Josh Reeves with Keller Williams (404-547-3622) and Taylor Anderson (404-805-9898) are your contacts henceforth.
3. Can we get clarification regarding Bruce’s emails indicating that the inspection period would end on October 31, 2008, at which point earnest money becomes hard? Cartel did not ask for extension until after the date provided by Bruce (10/31/2008).
ANSWER: Contractually, the extension period did not end until November 11, 2008. Bruce was going off of the date of the contract rather than the binding agreement date (the date contracts were executed by both parties rather than the date noted in MS Word at the top of the document).
4. To clarify a point: The extension agreement basically requires a "free" 90 day extension since the referenced earnest money above was never required and they are not offering additional earnest money. Are we interpreting this correctly?
ANSWER: This is true, the earnest money will not go hard until after the inspection period expires, which is estimated at February 10, 2009. Remember, the date is based upon contract execution dates rather than the dates at the top of the documents. At that point, an additional $80,000.00 will be applied to the earnest account, making the grand total of $120,000.000 in total funds sitting in the account.
5. Related to the extension agreement:
a. Is it accurate to assume they have as long as they wish to obtain all the items outlined in paragraph 3 ("Contingencies")?
ANSWER: In accordance with the agreements, following the 90-day inspection, Cartel only has 60 days to apply for rezoning with the City of Atlanta.
i. What kind of time frame applies to these issues?
ANSWER: See above.
b. Can we get specific clarity, and therefore a date that the "extension period" expires? 90 days from when? The date up to this point has been intentionally ambiguous.
ANSWER: Based upon the contract execution dates, the date is anticipated as February 10, 2009. Remember, this date is based upon everyone getting their contracts in no later than tomorrow. There are some PG homeowners out of town right now and we’re working administratively to get their paperwork processed.
6. There are concerns that the deal is based on obtaining the entitlements/variances/ proper zoning. Do these entitlements/variances/proper zoning issues, in effect, render the sell date as undefined??
ANSWER: By sale date, we assume you mean closing date. That is the worst case scenario date, which is November 9, 2009.
a. For example, if Cartel Properties were granted zoning in 2010, the deal would be extended by contract until 2010. Is this a correct assumption?
ANSWER: No, this assumption is not correct. The expiration date is November 9, 2009. Zoning is processed by the City of Atlanta based upon applications/paperwork submitted by the Cartel Group.
b. There seems to be a conflict between point 4 (assignment section, “…closing no later than November 9, 2009”) with point 3 (contingencies section). Can we get clarification?
ANSWER: Cartel has to file for rezoning on or before 60 days following the end of the 90-day inspection period.
7. Given the experience with Paces Green Partners and the community’s fatigue over this process, is there anything Cartel Properties can provide us with to help assure us that this is, in fact, a ‘real’ transaction? While we do not wish to penalize Mr. Rohrig or the Cartel Group for the prior misrepresentations/errors/intentional omissions of Bruce and Paces Green Partners, it would help if we could be provided with some additional communications regarding this transaction – perhaps a timeline or something tangible to go by. We’ve been left in the dark for so long, any information would help.
ANSWER: Hopefully the blog will help. The timeline is determined by how long it takes to pull parcel information and assemble a new piece of property (put them together). This is a rather tedious process and there are a lot of moving pieces. We are compiling a list of the steps Cartel is taking to see that this transaction is successfully completed; Josh or Taylor will post this information as soon as it becomes available. Surveys have been completed on PG and SOBU Flats and received by George Rohrig; surveys were done by Loo-Turley & Associates. The architect(s) working on the project are Cooper Carry and R+D Plexus. The architectural renderings – there are several options now – are at Cartel Properties.
ANSWER: Since the inception of our deal, five (5) other parcels have been added to the project that Cartel is undertaking. The contingency that we’ve seen added to the contract is to reflect the time/effort/money it is taking to make the assemblage happen with the City of Atlanta. The other five (5) parcels are under contract so this should not be a concern.
2. Is there any reason why we were never provided with an executed assignment/special stipulations agreements as reported in many emails received by Bruce?
a. Is it safe to assume that they were never accepted as Bruce reported?
ANSWER: Moving forward, all of the signed agreements will be to you by the COB on Friday, November 14. There was some confusion regarding prior documents relating to whom, exactly, was to send them out. Keller Williams and Cartel can promise that this problem will not happen again. Josh Reeves with Keller Williams (404-547-3622) and Taylor Anderson (404-805-9898) are your contacts henceforth.
3. Can we get clarification regarding Bruce’s emails indicating that the inspection period would end on October 31, 2008, at which point earnest money becomes hard? Cartel did not ask for extension until after the date provided by Bruce (10/31/2008).
ANSWER: Contractually, the extension period did not end until November 11, 2008. Bruce was going off of the date of the contract rather than the binding agreement date (the date contracts were executed by both parties rather than the date noted in MS Word at the top of the document).
4. To clarify a point: The extension agreement basically requires a "free" 90 day extension since the referenced earnest money above was never required and they are not offering additional earnest money. Are we interpreting this correctly?
ANSWER: This is true, the earnest money will not go hard until after the inspection period expires, which is estimated at February 10, 2009. Remember, the date is based upon contract execution dates rather than the dates at the top of the documents. At that point, an additional $80,000.00 will be applied to the earnest account, making the grand total of $120,000.000 in total funds sitting in the account.
5. Related to the extension agreement:
a. Is it accurate to assume they have as long as they wish to obtain all the items outlined in paragraph 3 ("Contingencies")?
ANSWER: In accordance with the agreements, following the 90-day inspection, Cartel only has 60 days to apply for rezoning with the City of Atlanta.
i. What kind of time frame applies to these issues?
ANSWER: See above.
b. Can we get specific clarity, and therefore a date that the "extension period" expires? 90 days from when? The date up to this point has been intentionally ambiguous.
ANSWER: Based upon the contract execution dates, the date is anticipated as February 10, 2009. Remember, this date is based upon everyone getting their contracts in no later than tomorrow. There are some PG homeowners out of town right now and we’re working administratively to get their paperwork processed.
6. There are concerns that the deal is based on obtaining the entitlements/variances/ proper zoning. Do these entitlements/variances/proper zoning issues, in effect, render the sell date as undefined??
ANSWER: By sale date, we assume you mean closing date. That is the worst case scenario date, which is November 9, 2009.
a. For example, if Cartel Properties were granted zoning in 2010, the deal would be extended by contract until 2010. Is this a correct assumption?
ANSWER: No, this assumption is not correct. The expiration date is November 9, 2009. Zoning is processed by the City of Atlanta based upon applications/paperwork submitted by the Cartel Group.
b. There seems to be a conflict between point 4 (assignment section, “…closing no later than November 9, 2009”) with point 3 (contingencies section). Can we get clarification?
ANSWER: Cartel has to file for rezoning on or before 60 days following the end of the 90-day inspection period.
7. Given the experience with Paces Green Partners and the community’s fatigue over this process, is there anything Cartel Properties can provide us with to help assure us that this is, in fact, a ‘real’ transaction? While we do not wish to penalize Mr. Rohrig or the Cartel Group for the prior misrepresentations/errors/intentional omissions of Bruce and Paces Green Partners, it would help if we could be provided with some additional communications regarding this transaction – perhaps a timeline or something tangible to go by. We’ve been left in the dark for so long, any information would help.
ANSWER: Hopefully the blog will help. The timeline is determined by how long it takes to pull parcel information and assemble a new piece of property (put them together). This is a rather tedious process and there are a lot of moving pieces. We are compiling a list of the steps Cartel is taking to see that this transaction is successfully completed; Josh or Taylor will post this information as soon as it becomes available. Surveys have been completed on PG and SOBU Flats and received by George Rohrig; surveys were done by Loo-Turley & Associates. The architect(s) working on the project are Cooper Carry and R+D Plexus. The architectural renderings – there are several options now – are at Cartel Properties.
update
Good afternoon Paces Green:
Patrick and Shaun have been working diligently to get information from Cartel and have recently contacted me with our first update for today, Monday, November 10. The good news is that contracts are rolling in as most of us have anticipated, but it has been somewhat of a logistical nightmare handling the sheer volume of paperwork and questions of the individual owners. Given that everyone has very unique and particular interests, some much more extensive than others, we’ve worked hard to make sure everyone who formally submitted questions has been contacted. To the best of my knowledge, almost all of the homeowners with particular questions have had positive, reinforcing, and fortuitous conversations with Cartel or their representatives. To be clear: there is still a game of telephone tag occurring with the last few people --- we have a few owners who have been out of town making this process particularly tricky.
As a side note and to add to the logistical/administrative nightmare, It also seems that some of the messages from Mr. Rohrig with Cartel (those containing the .pdf file we all signed) went into people’s spam/junk boxes (ours did and so did Shaun’s). There were some owners who were simply unaware of what was happening until late in the day yesterday or early this AM.
I have been told that they (folks from Cartel and/or their brokers) are creating a blog as I type to formally provide us with a forum in which we can all view information as it becomes available. I think this will be an excellent tool for each of us as we work towards closing on our units and will provide each of you with information directly from the Cartel folks rather than from anyone in the community.
Because of the late hour in the day, we expect another formal update from Cartel in the morning. I do hope, however, to have the blog information before too long so that I can send it out to everyone this evening. Again, the minute I get it or any other info, I will forward it along to everyone involved.
I have received phone calls and emails from many of you and believe I have responded to everyone; if I have missed your call or email message – please, please resend it. Shaun, Patrick, and I have been in constant communication all weekend and our hope is that we have not accidentally or inadvertently missed anyone. I believe that this message accurately represents the positive tenor of conversations and administrative processes that have occurred as a result of this final push.
Be well, and more into to follow…..
Tracy
Patrick and Shaun have been working diligently to get information from Cartel and have recently contacted me with our first update for today, Monday, November 10. The good news is that contracts are rolling in as most of us have anticipated, but it has been somewhat of a logistical nightmare handling the sheer volume of paperwork and questions of the individual owners. Given that everyone has very unique and particular interests, some much more extensive than others, we’ve worked hard to make sure everyone who formally submitted questions has been contacted. To the best of my knowledge, almost all of the homeowners with particular questions have had positive, reinforcing, and fortuitous conversations with Cartel or their representatives. To be clear: there is still a game of telephone tag occurring with the last few people --- we have a few owners who have been out of town making this process particularly tricky.
As a side note and to add to the logistical/administrative nightmare, It also seems that some of the messages from Mr. Rohrig with Cartel (those containing the .pdf file we all signed) went into people’s spam/junk boxes (ours did and so did Shaun’s). There were some owners who were simply unaware of what was happening until late in the day yesterday or early this AM.
I have been told that they (folks from Cartel and/or their brokers) are creating a blog as I type to formally provide us with a forum in which we can all view information as it becomes available. I think this will be an excellent tool for each of us as we work towards closing on our units and will provide each of you with information directly from the Cartel folks rather than from anyone in the community.
Because of the late hour in the day, we expect another formal update from Cartel in the morning. I do hope, however, to have the blog information before too long so that I can send it out to everyone this evening. Again, the minute I get it or any other info, I will forward it along to everyone involved.
I have received phone calls and emails from many of you and believe I have responded to everyone; if I have missed your call or email message – please, please resend it. Shaun, Patrick, and I have been in constant communication all weekend and our hope is that we have not accidentally or inadvertently missed anyone. I believe that this message accurately represents the positive tenor of conversations and administrative processes that have occurred as a result of this final push.
Be well, and more into to follow…..
Tracy
Subscribe to:
Posts (Atom)
