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Sovereign At The Ballpark: 100 Crawford St.


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  • 3 weeks later...
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7 hours ago, Urbannizer said:

Anyone else thinks this one is moving pretty slowly? It’s the same developer as Dolce Midtown so I wouldn’t be surprised if this takes 5 years to finish.

Seems to me like the start always takes a looooong time when subterranean levels are involved.  That said, your second sentence speaks volumes.  It may progress at a snail’s pace from start to finish.  We’ll know quickly once they Get above-ground.

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36 minutes ago, Thomas Ratliff said:

So mattyt36, I don't understand.....Dolce? What happened?

 

Dolce Living was a traveshamockery of a project, a 6 or so story residential midrise on West Gray with no ground floor retail that didn't look quite right architecturally (sort of like Regalia) but came along around 2014 when standards were a bit lower around here than they are now, got about 2/3 of the way built and then mysterious was halted with all the gypsum board up and left to rot where it now stands hulking over West Gray like a giant dead cow, breathing its vibes of failure over the area.

 

Edit: It actually has made some glacial progress over the past 3 years or so since Miss Havisham's clock struck 8:40 AM.

 

 

Edited by H-Town Man
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Thank you for the disturbing news H-Town Man. This was an ugly abandoned insulation warehouse for years. When they first begin addressing the building they were doing things backward. I know someone lost  $tens of thousands before they even started demolition. It was like they were first attempting to renovate. Anyway, in my professional opinion, there are not enough columns to support a structure of that size.

Thanks again

 

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  • 3 weeks later...

It is great infill and as Naviguessor stated, it helps add downtown residents. Not to mention, it's way better than a surface lot. Is it the best, no. But it's is much better than what is in this part of downtown. I hope it gets back underway. I am sure it will. Just going to take 5-7 years to finish.

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  • 2 weeks later...

As someone who lives at City View Lofts I am glad it will not be a high-rise! My view of the city is perfect. 

My question for you smart architect-types: the crane has rotated when storms with high winds have blown through. Is that normal? 

Also, I can report it has been weeks since anyone has been on the project. 

image.jpg

Edited by RecoveryRadio
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8 minutes ago, RecoveryRadio said:

As someone who lives at City View Lofts I am glad it will not be a high-rise! My view of the city is perfect. 

My question for you smart architect-types: the crane has rotated when storms with high winds have blown through. Is that normal? 

Also, I can report it has been weeks since anyone has been on the project. 

image.jpg

Thanks for the update! As for the crane question, yes that is normal and is called weather-vaning.  It allows the stress that the wind puts on crane to pass by with a lot less resistance than if it were to be static.  Path of least resistance.

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2 minutes ago, brijonmang said:

Thanks for the update! As for the crane question, yes that is normal and is called weather-vaning.  It allows the stress that the wind puts on crane to pass by with a lot less resistance than if it were to be static.  Path of least resistance.

 

I think that was why the crane in Dallas blew over a couple weeks ago. It was locked in place and unable to rotate when the high winds hit.

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16 minutes ago, RecoveryRadio said:

As someone who lives at City View Lofts I am glad it will not be a high-rise! My view of the city is perfect. 

My question for you smart architect-types: the crane has rotated when storms with high winds have blown through. Is that normal? 

Also, I can report it has been weeks since anyone has been on the project. 

image.jpg

 

This one seems to have had problems from the very beginning of construction. My guess (only a guess from inferring actions taken thus far) is that this is going through some kind of contractor issue. When you see a site go dead, that is usually the cause. I wouldn't be surprised if this stays dead for a little longer the client will just rebid and go forward with another contractor. You might get holdups like this for when there are changes to the design, but this is getting a bit ridiculous, so I'm assuming the former than the latter.

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  • 2 weeks later...
13 hours ago, Urbannizer said:

I knew from the beginning this one would have issues. Dolce Living is the worst MF developer here.

 

Absolutely! They definitely aren't the sharpest knives in the drawer. They always seem to have contractor issues, and at this point its not just a one time thing, but a pattern. Now this is merely an allegation, as I definitely don't know whats going on, but I know from knowledge and a little experience that when contractor problems arise it often times is the case when a project isn't properly bidded and instead is given to a contractor that is a "friend" of the client who wants a project to be built. This almost always hurts a project because often times the "friend" that is hired isnt one that can actually do the job. Once again this is just an allegation and speculative at best, but with multiple failed projects or delayed projects this is an allegation that I'm feel confident in making. This is organization that needs to clean house and restructure their team that approaches these kinds of projects.

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And to think they tore down an old warehouse that someone could have turned into an interesting collection of shops, studios, offices, or restaurants so these people could 

screw around and maybe never finish. What a waste of some history and a lot that could have been very useful to the neighborhood.

I wish these people would just stop trying because their results suck.

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14 hours ago, Urbannizer said:

I knew from the beginning this one would have issues. Dolce Living is the worst MF developer here.

 

I just want to know who gives them cash to start these things. I can come up with way less wasteful uses for their money that involve Italian sports cars and nice vacations for me and only me. 

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2 hours ago, Nate99 said:

 

I just want to know who gives them cash to start these things. I can come up with way less wasteful uses for their money that involve Italian sports cars and nice vacations for me and only me. 

 

There is definitely something fishy with how they conduct business and it starts with funding. They crowdfund their equity using unrealistically high returns with no mention of a hold period, not to mention they have a senior note and a mezzanine note to pay off. Their team is incredibly small and it doesn't look like they have any dedicated team members that work in Houston, so no developer on site. This group screams incompetence and I would love to get my hands on their prospectus, no doubt there are some upset people that saw their money vanish (Dolce Midtown). 

 

https://www.luxecrowdfunding.com/regalia-at-the-park-2/

image.png.f0d975e214e2656d5ba0d007197656ce.png

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11 minutes ago, C List said:

 

There is definitely something fishy with how they conduct business and it starts with funding. They crowdfund their equity using unrealistically high returns with no mention of a hold period, not to mention they have a senior note and a mezzanine note to pay off. Their team is incredibly small and it doesn't look like they have any dedicated team members that work in Houston, so no developer on site. This group screams incompetence and I would love to get my hands on their prospectus, no doubt there are some upset people that saw their money vanish (Dolce Midtown). 

 

https://www.luxecrowdfunding.com/regalia-at-the-park-2/

image.png.f0d975e214e2656d5ba0d007197656ce.png

 

I'd apply a risk premium to that, but I'd have to divide by zero.   

 

Never would have guessed they could have drummed up enough for the crane rental going that route. 

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1 hour ago, C List said:

 

There is definitely something fishy with how they conduct business and it starts with funding. They crowdfund their equity using unrealistically high returns with no mention of a hold period, not to mention they have a senior note and a mezzanine note to pay off. Their team is incredibly small and it doesn't look like they have any dedicated team members that work in Houston, so no developer on site. This group screams incompetence and I would love to get my hands on their prospectus, no doubt there are some upset people that saw their money vanish (Dolce Midtown). 

 

https://www.luxecrowdfunding.com/regalia-at-the-park-2/

image.png.f0d975e214e2656d5ba0d007197656ce.png

 

For those who will hire an accountant to do these things in the future, and are a bit dumb when it comes to business things, but would also like to know a little bit about this stuff...what are we looking at here? What do you see here that reaches your conclusion? I really want to know because I have no clue what I'm looking at here. What is shady? Is this something that someone would bring them to court over?

 

Aren't these guys taking tax credits from the original downtown living initiative?

 

Maybe a little indepth but also in laymens terms.

Edited by Luminare
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Not too familiar with the industry averages but typically, if I see higher than 15%, it starts to raise questions.  32% is probably double what they can expect.

 

Internal rate of return btw.

Edited by kbates2
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13 hours ago, Luminare said:

 

But why? I really don't know what that is haha.

 

It's the annual rate of increase between what an investor puts in and what he/she gets out at the end. So if someone invests a million for one year and expects a 32% IRR, they are projecting that they will get back $1,320,000 in a year. For comparison, people buy 30-year U.S. Treasuries at a 2.63% rate and mortgages are typically sold with around 4% interest, so why would anyone invest in those things if they thought they could make 32% annually on real estate? Most real estate investments are done expecting 7% to 12% return, this being higher than Treasuries or mortgages because the risk is higher.

 

Edited by H-Town Man
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8 minutes ago, H-Town Man said:

 

It's the annual rate of increase between what an investor puts in and what he/she gets out at the end. So if someone invests a million for one year and expects a 32% IRR, they are projecting that they will get back $1,320,000 in a year. For comparison, people buy 30-year U.S. Treasuries at a 2.63% rate and mortgages are typically sold with around 4% interest, so why would anyone invest in those things if they thought they could make 32% annually on real estate? Most real estate investments are done expecting 7% to 12% return, this being higher than Treasuries or mortgages because the risk is higher.

 

 

So they are either way in over their heads or something really fishy is going on. Yikes.

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21 minutes ago, Luminare said:

 

So they are either way in over their heads or something really fishy is going on. Yikes.

 

Agree with H-Town and others. It's not impossible, exactly, but anything that ever actually earned a 32% IRR had a gigantic speculative upside that no one could have predicted.  

 

I figured it was some other convention in the math that I am not familiar with, but it doesn't sound like it.  

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Luxe's President/CEO/Owner/Whatever is under a criminal indictment in Illinois for bank fraud. USA v. Krivoruchko, 1:19-cr-00080

I should add - that indictment relates to one of Luxe's condo projects in Chicago

Edited by Vy65
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  • The title was changed to Sovereign At The Ballpark: 100 Crawford St.

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