SKYE Condominiums and Hyatt Place Hotel

[dubone]

Yeah, I think I read somewhere that the city was expected to pull their permit to take a lane of Caldwell (or it was expiring). Lately, it hasn't been an issue as they reduced the width of the northbound Caldwell to make it bidirectional, but they'll soon need to pave it. It could be that the city will let them take back that lane after the paving, but somehow I doubt it until.

[Eastman]

Yeah, I think I read somewhere that the city was expected to pull their permit to take a lane of Caldwell (or it was expiring). Lately, it hasn't been an issue as they reduced the width of the northbound Caldwell to make it bidirectional, but they'll soon need to pave it. It could be that the city will let them take back that lane after the paving, but somehow I doubt it until.

I think they ought to drape it in colorful fabric and light it from within. Now its a massive art project, and they could possibly get a grant or at least tax reductions. I'm just say'in..............

[palmetto75]

Verna has a great reputation,

I don't think you can do business in one place very long and not have at least a few detractors, but I know several longtime business types in this town that would take serious issue with the above. Sure his partner may not have helped, but choosing your bedfellows speaks largely to how well you do or don't run yr business. This is no better evidenced by this fiasco.

[monsoon]

Looks like the North Koreans talked some Egyptians to come in and do some work on this unfinished building. Maybe there is some hope for The Park afterall.

[Spartan]

Haha, cool find. I know what I'm about to say is a little off topic, so I'll go ahead and throw up the lieutenant:

That picture is fascinating for so many reasons. Its just a picture of that weird building, but there are so many contrasts in that street scene- mostly relating the failures of communism.

Rich vs poor

New vs old

Transit vs SOV

Electric power vs gasoline

Traffic volume vs available capacity

What happened to equality for all?

[monsoon]

^From those bullets, I can't tell if you are describing the USA or North Korea.

As a technicality, North Korea was never Communist. It is a personality dictatorship that looks to communist regimes (namely China and the former Soviet Union) for support.

[atlrvr]

In actual construction related news, last week and today, workers have been on a hoist on the side of the building doing something. I think they are trying to secure the building against the elements, but I'm not positive.

[sleightofhand]

Can someone tell me who ended up with The Park?

[atlrvr]

The bank that foreclosed.

[monsoon]

There is a short story out today that says Verna has filed for a personal Chapter 7 bankruptcy. He apparently has upwards of $50M in claims against him, most likely due to his project, and his only asset is his ~$10M home in Myers Park. What would be interesting to know is if he has changed the deed so that he and his wife hold it by Tenancy by the Entirety. I did not realize that he is 83.

[nashbill]

After seeing initiald's photo of the Duke tower with the Park in the forground, I did a search and found this: Link

Maybe someone will get a bargain and finish it.

[HopHead]

After seeing initiald's photo of the Duke tower with the Park in the forground, I did a search and found this: Link

Maybe someone will get a bargain and finish it.

So if I understand this correctly, whoever actually wins the auction can finally finish or "do something" with this building aside from selling it again or continuing to let it sit as an eyesore? If that's the case, I'm hopeful by the time the Nascar Hall opens next year this won't look like rusted structure of steel...

[monsoon]

^I believe that is the case. The recent court proceedings removed all claims and liens that were on the property. We don't know the terms of the auction but I think the bank is going to want to try and re-coup some of their investment. However, the once $500M, 40 Story, 1330 Avenue of the Americas building in NYC just sold at auction for $100,000 in April. The owner of the building had defaulted on the loan in the same manner that Verna did.

[nashbill]

^I hope so. I don't know why anyone would buy that and let it set, like the bank is doing. (I assume a bank owns it)

EDIT: I was responding to dbull

[nashbill]

Really, $100,000 or was it $100,000,000?

[nashbill]

Answered my own question. It did sell for $100,000 but the buyer assumed a $240,000,000 mortgage. Link. Do you think a buyer for the Park wold have to do something like that?

[monsoon]

It really depends upon the terms of the auction. Apparently you have to contact the agent above to find that out.

[atlrvr]

This project only makes sense if it can be purchased cheap enough allowing the future owner to "honor" the existing contracts....without buyers, this thing has no chance of ever getting another construction loan. There is no mention if the auction is no reserve. I guess it depends on the bank balance sheets as to how compelled they are to just dump it.

Sidebar:

Glad to see Nashbill post that the NYC tower included the assumption of the debt....it essentially sold for about 50% off the original sales, which is typical for 2007 vintage office deals (I'm assuming that it was one of Mackinowe (sp?) purchases of that era that were grossly overlevaraged to support his careless acquisition of other trophy towers). John Hancock sold for a similar discount in Boston recently. The few developers that grossly overpaid really did create a bubble, considering there was little upside to any of these buildings, as they were mostly fully leased. The economic case was that current values were based on future rent increases and cap rates declining below the already near-historic lows. Similar fundamentals to what has hurt the housing market, but with a much more volatile product.

[monsoon]

An article in the BJ covers some updates on The Park. Assuming they are able to at least accurately report factual data here is some updates on what was posted above:

• Auction is scheduled for July 22.
  
• 15 potential buyers have signed up.
  
• It is an open auction. i.e. there is no reserve amount. However the BJ says the seller can reject an offer that is too low.
  
• Various people are estimating that it will take $14M to $30M to finish it.
  
• Building has deteriorated due to weather exposure, and has been hit by vandals
  
• A couple of developers said the odd size, 100 units, makes for a difficult business case.
  

Will be interesting to see what happens. I had not thought of the effect of vandals, but I would assume it makes an attractive target for thieves to steal things for money. I assume there isn't much if any security at the place.

[Charlotteman]

^^ So essentially in one month, something conclusive will be known about the Park.

I still admire the Park's architecture, it's views, and it's premise. Maybe I'm among the few that can envision a Phoenix rising from this debacle.

[Spartan]

How much would it cost to implode the thing?

[New Name]

How much would it cost to implode the thing?

I think my neighbors would do it for $10 and a case of Miller High Life. Might not be legal though....

[monsoon]

You mean something like this?

[cltheel.sdl]

^ Uhh, I hope there weren't any people inside at the time. So much for a solid foundation.

[RiverwoodCLT]

Looks like the foundation was not built right, and the soil looks like is all mud. Someone tooks a short cut on construction.