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Ibiza- An urban legend?

Home Forums General Columbus Discussion Development Ibiza- An urban legend?

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Viewing 15 posts - 61 through 75 (of 80 total)
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  • #336539

    JonMyers
    Participant

    MikeReed wrote >>
    I demand that this “JonMyers” reveal his true identity.

    Well, if you must know I’m a writer for a very prominent magazine in town and will be debuting a column called a glass of wine and a cupcake. That’s all I can reveal right now.

    #336540

    goldenidea
    Participant

    IMO, while it very unfortunate to have the gaping hole that is the Ibiza lot along our Short North High Street corridor, you should consider and give credit to some of the positives RMR has brought to High Street and the Short North. I think Dakota is certainly a positive, as it Union (despite the loss of most of the Starry Night mural), and the townhouses they built on Buttles across from the pond are great. They have succeeded in getting a lot of good things built around here and they’ve attracted a lot of good people into the neighborhood because of their efforts.

    We’re still in a historic real estate meltdown. Banks are still not lending. They aren’t lending to develop and build high rises like Ibiza, and they also aren’t lending for land transfers. So RMR probably couldn’t sell that lot if they tried, as least for any respectable price. (If I’m not mistaken, I thought I saw that they had it listed.)

    Jackson was able to move forward b/c they locked in their financing before the bust. It was lucky timing on their part. Ithink at that time, RMR was still working on selling out Dakota. So they were preoccupied and couldn’t/didn’t get financing.

    Eventually, something will get built at the Ibiza location. Perhaps still RMR’s Ibiza design or perhaps something else. From the standpoint of our local economy, that location is too valuable and Short North popularity is too strong for it to sit vacant for any longer than the macro-economy/bank freeze causes it to. Unfortunately, it’s going to take more time. News from JPMorgan yesterday (higher loan losses…this from the sole major bank that had avoided major loan losses) points to the fact that the bust isn’t over yet.

    At least the Rosendale space hasn’t been turned into a soup kitchen; and we don’t have 30% unemployment and people lined up on High Street waiting for their daily allotment of free bread and watery soup.

    #336541

    Brant
    Participant

    Not sure I ought to be adding to the gossip surrounding this debacle, but this info comes from a reliable source…

    1.5 years ago, ARMS bought the building at 850-852 N High, just north of the Ibiza property. The plan was to convert all rented units (storefronts and residences) in that building into condominiums, then use the influx of liquid capital to start construction of Ibiza.

    Unfortunately, ARMS bought the building as a single parcel and were surprised to find that the (city? county?) government wouldn’t allow them to subdivide the property into smaller parcels for resale. So ARMS is currently stuck with a bunch of renters they never wanted.

    ARMS then approached their new renters with news that the square footage per unit had been undervalued by the previous landlord, and that the renters would have to increase their monthly rent to cover this gap, even if their lease agreement was still in the middle of its term. If you’re thinking, “Wait, you can’t change the terms of a contract before it expires,” you’d be right. After the lawyers got involved, ARMS finally backed down.

    ARMS has an agreement with Corna-Kokosing to construct Ibiza. But facing a financing shortfall, ARMS attempted to strongarm C-K into lowering their bid to the tune of $3 million. C-K replied, “not a chance” and ARMS is stuck with a construction company it can’t afford.

    As I understand it, construction will take approximately one year from groundbreaking to completion, but the agreements signed by Ibiza’s earliest investors will begin to expire in May, meaning that even more money will disappear from this project.

    In their desperation, ARMS is burning bridges left and right, developing antagonistic relationships with their business partners, hoping that if they don’t return calls or reply to emails then people won’t figure out that Ibiza is virtually a bust.

    #336542
    Jason Powell
    Jason Powell
    Participant

    goldenidea wrote >>
    IMO, while it very unfortunate to have the gaping hole that is the Ibiza lot along our Short North High Street corridor, you should consider and give credit to some of the positives RMR has brought to High Street and the Short North. I think Dakota is certainly a positive, as it Union (despite the loss of most of the Starry Night mural), and the townhouses they built on Buttles across from the pond are great. They have succeeded in getting a lot of good things built around here and they’ve attracted a lot of good people into the neighborhood because of their efforts.
    We’re still in a historic real estate meltdown. Banks are still not lending. They aren’t lending to develop and build high rises like Ibiza, and they also aren’t lending for land transfers. So RMR probably couldn’t sell that lot if they tried, as least for any respectable price. (If I’m not mistaken, I thought I saw that they had it listed.)
    Jackson was able to move forward b/c they locked in their financing before the bust. It was lucky timing on their part. Ithink at that time, RMR was still working on selling out Dakota. So they were preoccupied and couldn’t/didn’t get financing.
    Eventually, something will get built at the Ibiza location. Perhaps still RMR’s Ibiza design or perhaps something else. From the standpoint of our local economy, that location is too valuable and Short North popularity is too strong for it to sit vacant for any longer than the macro-economy/bank freeze causes it to. Unfortunately, it’s going to take more time. News from JPMorgan yesterday (higher loan losses…this from the sole major bank that had avoided major loan losses) points to the fact that the bust isn’t over yet.
    At least the Rosendale space hasn’t been turned into a soup kitchen; and we don’t have 30% unemployment and people lined up on High Street waiting for their daily allotment of free bread and watery soup.

    I’m not going to deny the fact that the developer has made a difference in the neighborhood with regards to those aforementioned projects. My beef is due to the fact that they have all but ceased communication on any progress with the project, whether it be positive or negative. It’s completely unprofessional. I’m a rational human being. That being said, if it is due to the economy or lending or whatever, I would completely understand, so just announce it. If it is bad news, swallow your pride and just tell us instead of keeping us in the dark. It’s not right.

    #336543

    LAer
    Member

    First post so have at me. However, I’m a frequent CU reader who has watched this drama unfold over the last couple of years.

    For a short introduction: I’m originally from Westerville and of course a Buckeye, but I’ve lived in Los Angeles, Palos Verdes then Santa Monica area for the last 30 years. My family is still in the Columbus area. I’m in commercial real estate, licensed in both California and Ohio. My MO has been to bring California investors to Central Ohio for local investment opportunities — that was until the big bank bust started about a year and half ago.

    As a previous poster wrote, financing has become all but impossible to secure for anything but the safest investments with national credit tenants, etc. I know of projects all over the United States where similar has happened. While I can certainly understand why this developer is having a rough go of it lately, it’s really hard to forgive the lack of communication. I don’t know why some people can’t get this through their head, but it just makes matters worse. If you’re having problems securing financing, join the club, but just admit it.

    Like many of you, I think the Short North is one of the most positive things that’s ever happened in Columbus. And while back there, which is about every other month, for a month or so, I’ve have spent many a Sunday afternoons sitting a door or two away for a bite to eat and a couple of beers. I don’t like show tunes so I’m always sitting outside where I have a wonderful view of the empty lot, the fence and that stupid ass sign.

    A previous poster wrote that they thought the lot might be listed for sale, which peaked my interest, but I just checked loopnet and it is not listed as of tonight, Sunday night. It might be on COCIE but I haven’t checked there yet.

    Is financing the only remaining hang-up and if so does anyone know what it would take in terms of $$$ to get this moving again? And btw, I have nothing whatsoever to do with the developer and never met nor talked with them. However, I do work with investors that are interested in opportunities similar to this.

    And sorry, this is bit of a thread jack, but what’s become of Jeffrey Place? I assume its similar issues with financing?

    #336544
    Walker Evans
    Walker Evans
    Keymaster

    LAer wrote >>
    First post so have at me. However, I’m a frequent CU reader who has watched this drama unfold over the last couple of years.

    Welcome to the site! :D

    #336545

    JonMyers
    Participant

    LAer wrote >>
    And sorry, this is bit of a thread jack, but what’s become of Jeffrey Place? I assume its similar issues with financing?

    Hey welcome.

    From what I understand Jeffery Place is in the same conundrum. Financing. I know several people who have brought lawsuits against the developers, which probably isn’t helping matters.

    #336546

    JD3
    Member

    I would love to know what they’re telling someone who walks in and wants to buy a unit. I’ve posted a dozen times what they tell me, but I wonder if they’re still taking deposits???

    #336547

    DR
    Participant

    JD3 wrote >>
    I would love to know what they’re telling someone who walks in and wants to buy a unit. I’ve posted a dozen times what they tell me, but I wonder if they’re still taking deposits???

    The same thing they say every time you ask…..”We are wrapping up financing and should get back to you in the next 10 days”

    I heard that LA rumor last week…I am starting to think they are putting these rumors out themselves to keep investors at bay. Every few months something new is floating around.

    #336548

    JD3
    Member

    DR wrote >>

    JD3 wrote >>
    I would love to know what they’re telling someone who walks in and wants to buy a unit. I’ve posted a dozen times what they tell me, but I wonder if they’re still taking deposits???

    The same thing they say every time you ask…..”We are wrapping up financing and should get back to you in the next 10 days”
    I heard that LA rumor last week…I am starting to think they are putting these rumors out themselves to keep investors at bay. Every few months something new is floating around.

    I don’t doubt it.

    #336549

    revolutionist
    Participant

    Columbusite wrote >>

    Manatee wrote >>
    Time for some vandalism by seeds. I know I’ve suggested it before, but this time I mean it.
    The developers could do our whole community a huge favor, and show their goodwill, by investing a ridiculously small amount of money in wildflower seeds and taking down the fence and signs. At least then we’d have something to look at, and maybe the soothing sounds of crickets on summer evenings.
    Nothing too tall mind you (except for a stray sunflower or two might be nice), just something really hardy and scrubby that’s native and grows in crap soil. With flowers. Please!

    I was thinking the same thing. Just let it be a garden until something gets built.
    As far as the comments on how much of an eyesore this is, it really is nothing. You want an eyesore? Go off of High on some streets where there are rundown boarded up buildings followed by more dilapidated buildings with an occasional overgrown lot for variety to put things into perspective.

    For possible hobby for this upcoming spring, some links FYI, Enjoy ;)

    http://en.wikipedia.org/wiki/Seed_bombing

    http://www.instructables.com/id/How-to-Make-a-Seed-Bomb/

    http://www.guardian.co.uk/environment/video/2008/apr/25/seedbombing

    http://www.guerrillagardening.org/ggseedbombs.html

    #336550

    LAer
    Member

    JonMyers wrote >>

    LAer wrote >>
    And sorry, this is bit of a thread jack, but what’s become of Jeffrey Place? I assume its similar issues with financing?

    Hey welcome.
    From what I understand Jeffery Place is in the same conundrum. Financing. I know several people who have brought lawsuits against the developers, which probably isn’t helping matters.

    I’m having the same problem all over the country. Unless it’s a straight up national credit tenant (Wal-Mart, Walgreens, CVS, Best Buy Staples, etc) on a long lease in a fairly new building, I’m just having fits getting any deal financed.

    Last year we had a major Santa Monica based developer who has in the past completed many 2000-3000 home mixed use developments, hang it up and get out of the business. I understand what they are going through. Columbus has been very lucky to not have the messes you see all over Florida, Arizona and Nevada from developers abandoning partially completed projects or completed projects with nothing sold where the develop has turned it back over to the lenders.

    I’d like to think that 2010 will get better, but lenders are hurrying to pay back the TARP loans so they can get the pay caps off of their backs and resume paying themselves these exhorbodant bonuses. Of course that means less money to loan. We aren’t through this yet — not anyway near.

    However, none of this excuses bullshitting everyone regarding the status of these two projects. If they try being upfront, candid and responsive, they’ll find that people have much more patience than they thought.

    #336551

    LAer
    Member

    DR wrote >>

    JD3 wrote >>
    I would love to know what they’re telling someone who walks in and wants to buy a unit. I’ve posted a dozen times what they tell me, but I wonder if they’re still taking deposits???

    The same thing they say every time you ask…..”We are wrapping up financing and should get back to you in the next 10 days”
    I heard that LA rumor last week…I am starting to think they are putting these rumors out themselves to keep investors at bay. Every few months something new is floating around.

    What LA rumor? I sure haven’t put this on anyone’s plate.

    #336552

    DR
    Participant

    One of my real estate agent friends said that the developers have been recently talking about some magical financing from LA or even an overseas investor getting involved…He said that to me last Wednesday.

    #336553

    DR
    Participant

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