West University Examiner - News
Sonoma says financing in place
By MICHAEL REED
A representative of the high-end condo-over-retail Sonoma project announced the development has obtained financing for its second phase, which will be built before what was to have been its first phase.
In an e-mail sent Saturday, sales team member Keith Kaposta said groundbreaking at the Rice Village site was still expected in February following the expiration of Walgreens’ lease on the property at 5313 Kelvin St.
In another development, the city of Houston said Tuesday that developer Randall Davis had successfully completed all work that was required by the extended deadline of Oct. 27.
A letter of credit through Amegy Bank for the required changes in the amount of $48,692 had been extended from July 27, 2007 and was granted July 24, 2008, Public Works Department spokesman Alvin Wright said.
The ordinance as passed by City Council specified that the amount be $55,315 for the letter of credit. No explanation for the differing about was available at press time Tuesday afternoon.
Additionally, the required plugging and abandonment of the 8-inch water line within Bolsover Street, and the relocation of the existing storm sewer inlets to Bolsover and Morningside Drive have already passed inspection, Wright said.
The condition that the developer “eliminate the appearance of the public street” at the intersections of Bolsover and both Kelvin and Morningside has also been fulfilled, according to the city inspection records.
Because the work has been accepted by the city, the money was released to the bank Tuesday, Wright said.
The sale of the 2400 block of Bolsover by the city was finalized Aug. 8, 2007, but was contingent on the receipt of two letter of credit.
The second of those is for work that must be completed by December 2012, subject to extensions by the Public Works director and requiring an $86,052 commitment.
That work includes completion of the project “as substantially presented to the community” and the installation of left-turn bays approaching Kelvin and Morningside at the Rice Boulevard intersections.
Wright said even if the work covered under the letters of credit was not completed by the deadlines, the city would not get the property back.
It was not clear at press deadline Tuesday afternoon what recourse the city would has if deadlines of this nature are broken.
Davis said recently he was negotiating for a $70 million loan with a 40 percent equity and hoped the more than 50 percent presales of Phase 1 units would be looked on favorably by lenders. He said property owner Lamesa Corp. tried to obtain a $100 million loan with 30 percent equity for Phase 1, but failed.
He said he would start the 85-residential unit Phase 2, even though work on 125-unit Phase 1 had not yet begun.
In an e-mail Sept. 26, Davis said “sales will have to be consolidated from Phase 1 to Phase 2” in order to obtain an loan for the smaller segment of the project after market conditions stalled his earlier plans.
The building where Phase 1 is planned formerly stood on the north side of Bolsover, containing Nit Noi restaurant and other businesses. It was demolished in October 2007, after a battle over the abandonment of that roadway and traffic concerns.
In June 2007, the city of Houston refused to release documents associated with the two appraisals of the property that were used to determine a sales price, citing confidentiality related to the negotiating process.
The city withdrew its objection and released appraisals that were 60 percent apart in fair market value with one coming in at slightly more than $1.46 million, or $60 a square foot, the other at a little more than $913,000, or $35 a square foot.
In August, the Public Works Department set a price of $1.74 million, or a little more than $60 a square foot.
In an e-mail sent Saturday, sales team member Keith Kaposta said groundbreaking at the Rice Village site was still expected in February following the expiration of Walgreens’ lease on the property at 5313 Kelvin St.
In another development, the city of Houston said Tuesday that developer Randall Davis had successfully completed all work that was required by the extended deadline of Oct. 27.
A letter of credit through Amegy Bank for the required changes in the amount of $48,692 had been extended from July 27, 2007 and was granted July 24, 2008, Public Works Department spokesman Alvin Wright said.
The ordinance as passed by City Council specified that the amount be $55,315 for the letter of credit. No explanation for the differing about was available at press time Tuesday afternoon.
Additionally, the required plugging and abandonment of the 8-inch water line within Bolsover Street, and the relocation of the existing storm sewer inlets to Bolsover and Morningside Drive have already passed inspection, Wright said.
The condition that the developer “eliminate the appearance of the public street” at the intersections of Bolsover and both Kelvin and Morningside has also been fulfilled, according to the city inspection records.
Because the work has been accepted by the city, the money was released to the bank Tuesday, Wright said.
The sale of the 2400 block of Bolsover by the city was finalized Aug. 8, 2007, but was contingent on the receipt of two letter of credit.
The second of those is for work that must be completed by December 2012, subject to extensions by the Public Works director and requiring an $86,052 commitment.
That work includes completion of the project “as substantially presented to the community” and the installation of left-turn bays approaching Kelvin and Morningside at the Rice Boulevard intersections.
Wright said even if the work covered under the letters of credit was not completed by the deadlines, the city would not get the property back.
It was not clear at press deadline Tuesday afternoon what recourse the city would has if deadlines of this nature are broken.
Davis said recently he was negotiating for a $70 million loan with a 40 percent equity and hoped the more than 50 percent presales of Phase 1 units would be looked on favorably by lenders. He said property owner Lamesa Corp. tried to obtain a $100 million loan with 30 percent equity for Phase 1, but failed.
He said he would start the 85-residential unit Phase 2, even though work on 125-unit Phase 1 had not yet begun.
In an e-mail Sept. 26, Davis said “sales will have to be consolidated from Phase 1 to Phase 2” in order to obtain an loan for the smaller segment of the project after market conditions stalled his earlier plans.
The building where Phase 1 is planned formerly stood on the north side of Bolsover, containing Nit Noi restaurant and other businesses. It was demolished in October 2007, after a battle over the abandonment of that roadway and traffic concerns.
In June 2007, the city of Houston refused to release documents associated with the two appraisals of the property that were used to determine a sales price, citing confidentiality related to the negotiating process.
The city withdrew its objection and released appraisals that were 60 percent apart in fair market value with one coming in at slightly more than $1.46 million, or $60 a square foot, the other at a little more than $913,000, or $35 a square foot.
In August, the Public Works Department set a price of $1.74 million, or a little more than $60 a square foot.
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