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Sonoma and its off-again financing
  
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By MICHAEL REED
Following a series of delays in its groundbreaking plans, the developer of the Sonoma property has announced the project will be placed on hold due to a lack of financing.
As recently as Oct. 18, developers claimed to have had financing in place.
In an e-mail sent on that date to parties who had expressed interest in buying units at the project, the Sonoma sales team wrote, “the developer has obtained financing for the property. We anticipate groundbreaking February of 2009 when Walgreens lease expires.”
Julie Tyson, president of the Appelt Companies, said in an e-mail response to Examiner questions about the financing,“We had secured a substantial majority of the financing for the south building through the cooperation of some local lenders who have also supported this project since its inception.”
She said a number of factors contributed to the financing falling through, “not the least of which is historical world economic crisis that is unprecedented...”
While saying developers would “carefully analyze our next step,” Tysor still called the site “arguably one of the best redevelopment sites in Houston.”
Walgreens, 5313 Kelvin St., stands on what would have been the site of the 85-residential unit Phase 2 of the project. According to the most recent Sonoma plans, it would have been built before the 125-unit Phase 1 because financing seemed more likely.
Partner Randall Davis said in late September that because Lamesa had been unable to obtain a $100 million loan with 30 percent equity to start the project as planned, an attempt was being made to negotiate a $70 million loan with a 40 percent equity on the smaller portion of the project.
At that point, about 50 percent of its units had been held by deposits, according to Davis, and he hoped those buyers could be convinced to commit to the smaller building instead.
Councilwoman Anne Clutterbuck of District C, where the project is located, said while she is “saddened” by the announcement, she expects to eventually “see a project similar to what was presented to the community” at the site.
In an effort make the project possible, the City Council on Aug. 8, 2007 voted to sell the 2400 block of Bolsover Street to Lamesa for $1.74 million, or about $60 a square foot.
The sale of the street was contingent on 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 by December 2012.
The building that once stood where Phase 1 was planned on the north side of Bolsover, containing Nit Noi restaurant and other businesses, was demolished in October 2007.
Clutterbuck said it is her understanding Lamesa intends to fence off most of the property from the public for the time being, and that it will be “kept it in the manner befitting the community.”
She said there has also been talk of using part of the site for such things as a community market or a staging area for other projects in the area.
Meanwhile, Walgreens spokesman Robert Elfinger said Monday the Rice Village store will close Dec. 31 as planned and will not be relocated.
As recently as Oct. 18, developers claimed to have had financing in place.
In an e-mail sent on that date to parties who had expressed interest in buying units at the project, the Sonoma sales team wrote, “the developer has obtained financing for the property. We anticipate groundbreaking February of 2009 when Walgreens lease expires.”
Julie Tyson, president of the Appelt Companies, said in an e-mail response to Examiner questions about the financing,“We had secured a substantial majority of the financing for the south building through the cooperation of some local lenders who have also supported this project since its inception.”
She said a number of factors contributed to the financing falling through, “not the least of which is historical world economic crisis that is unprecedented...”
While saying developers would “carefully analyze our next step,” Tysor still called the site “arguably one of the best redevelopment sites in Houston.”
Walgreens, 5313 Kelvin St., stands on what would have been the site of the 85-residential unit Phase 2 of the project. According to the most recent Sonoma plans, it would have been built before the 125-unit Phase 1 because financing seemed more likely.
Partner Randall Davis said in late September that because Lamesa had been unable to obtain a $100 million loan with 30 percent equity to start the project as planned, an attempt was being made to negotiate a $70 million loan with a 40 percent equity on the smaller portion of the project.
At that point, about 50 percent of its units had been held by deposits, according to Davis, and he hoped those buyers could be convinced to commit to the smaller building instead.
Councilwoman Anne Clutterbuck of District C, where the project is located, said while she is “saddened” by the announcement, she expects to eventually “see a project similar to what was presented to the community” at the site.
In an effort make the project possible, the City Council on Aug. 8, 2007 voted to sell the 2400 block of Bolsover Street to Lamesa for $1.74 million, or about $60 a square foot.
The sale of the street was contingent on 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 by December 2012.
The building that once stood where Phase 1 was planned on the north side of Bolsover, containing Nit Noi restaurant and other businesses, was demolished in October 2007.
Clutterbuck said it is her understanding Lamesa intends to fence off most of the property from the public for the time being, and that it will be “kept it in the manner befitting the community.”
She said there has also been talk of using part of the site for such things as a community market or a staging area for other projects in the area.
Meanwhile, Walgreens spokesman Robert Elfinger said Monday the Rice Village store will close Dec. 31 as planned and will not be relocated.
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