101 Contracts Signed -- These are the ones that still remain
Here's a list of units we do not have signed contracts for.
Assemblage Update
I hope Everyone had a wonderful Thanksgiving and enjoyed the beautiful weather. Presently we have contracts still unsigned. We have made contact with ALL remaining unsigned owners and provided them with any and all information possible. Nobody has said “NO” to signing their contracts with the assemblage. Not a single person. All remaining individuals are fully aware of this opportunity. We have spoken with all of them. If we aren't in receipt of signed contracts by the remaining unit owners by 5 PM on 1 December 2017 they will be counted as a "NO" to signing with the assemblage. If we receive an official "NO" from any of the unsigned unit owners the assemblage team will update the blog immediately informing everyone that the assemblage is incomplete, and the deal is off. We encourage all of you to please speak with your neighbors about the importance of this deal. The property is worth approximate...
Point of information: About what are some owners in communication with agents?
ReplyDeleteI have heard some holdouts say they are doing so because they are convinced that they will get more $$$. I hope the agent communication is about setting the record straight on that.
ReplyDeleteAnon - I hope you will pass along this person's name to the realtors so they can fully explain that holding out will not get them more money.
DeleteI am one of the holdouts. I purchased some months ago, and will hardly realize getting back what I have put into the place. Yippee for those who've owned for many years - you'll be getting quite the paycheck.
ReplyDeleteThe HOA's recent memo -- 'better sell now, 'cause rogue tenants are roaming the grounds with their unapproved pets; the roof is caving in; the plumbing is about to fail; and crime will increase even more since we can't afford security!! BWAHAHAHA.' Really? Using mismanagement as a scare tactic can backfire. Buildings last for decades in cities where people know how to properly budget capital expenditures over their lifespan. Why wasn't this done at Sobu? Why are 'rogue tenants' allowed now? And why aren't the homeowners being charged already? Thanks a lot. Wish you'd disclosed the real level of commitment to the place before I purchased.
I'm not saying I refuse to sell. I am not "holding out for more $$$$," because I believe the agent when he says 'this is all there is.' This is just not a good deal for me, as is probably the case for others.
Hi Anon - I totally understand where you’re coming from. I apologize that whoever you dealt with from the gate didn’t tell you the real in terms of the building and i appreciate you speaking up in some form. I’ve been here from 2007 and everything wasn’t shared with me either. Soon after arriving the Conceirge was gone and shortly after that my ceiling came down on my bed due to roof issues & I noticed a bunch of other issues to including my plumbing that is currently an issue. (The roof collapsed for a second time just a year ago as well, I’m happy to share pics if you want to email me personally). Perhaps mgmt could have done better but in any case we’re here and i assure you most of us aren’t really making out like bandits because just like you we put countless dollars into this place as well. But with what you have learned about Sobu however good/bad the deal is do you think it’s better to stay? And also what would make leaving a better option for you?
DeleteThank you for posting. It really is good to hear the other side. Here's what I can tell you, as an original owner. I paid extra to be on the top floor and an extra parking space, upgrade countertops, and stainless steel appliances. I planned to stay. Atlanta had a big impact from the dot.com bust. Many, many units went into foreclosure. We became a "black" building. Nobody could sell. No bank would loan. Prices dropped dramatically. A few lucky people were able to sell. Some just borrowed from savings and took $40K tio closing to move on. The rest learned that when one person's plumbing needs to be turned off, the whole building has theirs turned off. How that passed code, I'll never know. We pay very very high association fees to cover paying for everyone's electricity and water. There's no way to only get charged for what you use.
DeleteAs far as the roof, I think it was the very first month the building was open and a top floor owner had her ceiling cave in. Huge expense we weren't expecting right away. We have never wanted window treatments. Our neighbor got them. He found out the casement was crumbling.
Look at the spreadsheet. Look at all the red. I personally lose almost as much as I collect in rent, as a legal renter. Every. Single Month.
This building is a learning experience I'll never forget. And, I'll never buy something like this again. If I'm lucky, I'll get a tax break and stop the bleeding. I'd be happy to share how bad my losses are. The only people really making money are those that bought a distressed property.
Another downturn in the economy and we'll see more foreclosures.
The illegal renting is because people got married, got divorced, had a baby, and still couldn't sell. If they couldn't sell, and had to move, the choice become turning a blind eye to renters (banks don't pay associations fees during foreclosure) to keep from being a black building and have condo fees paid. It's a tough spot. My relationship with this building has lasted longer than most marriages I know.
I don't know about anyone else, but the market value spreadsheet seems optimistic, and that would still be at a huge loss for me.
I own #805. I would love to share more about costs and the history. My husband was the treasurer on the board during the last attempted sale. He's an accountant. Our only chance at getting any money at all in the positive is this deal.
Short of that, I have literally prayed for a meteor to destroy the building (no people or pets harmed).
Getting rid of this would free us to all live in nicer places with more flexibility.
Central heat and air is so much more pleasant, especially if you have allergies.
Water that isn't so rusty that you have to change the filter monthly or it will clog your water dispenser isn't missed.
And, my plumber said it's only a matter of time before sewage backup is an issue. He saw a tipped stack or something in the central area that he was concerned about. He thought it would affect my neighbors, not me, and I reported it, but I doubt it's been addressed proactively.
I loved Sobu. I loved the seven years I lived there. I'm ready to let go. I'm ready to stop paying to maintain an old building as separate units that needs to be managed as a whole. It's made to be what the developers have planned.
Feel free to contact me directly, if there's more info I can provide.
To the holdout above, and anyone else who is thinking of holding out:
DeleteA little background on me. I have an Ivy League degree in economics and am a cash based real estate investor. I have bought around $600,000 in property in the last 3.5 years that I have sold for around $1,000,000.
1. $287.65/ft is a GIFT for this building. You can buy in the Eclipse, 325 Paces, 2828 Peachtree, Buckhead Village Lofts, Concorde, Park Lane, Mathieson Exchange Lofts, Ovation, Phoenix on Peachtree, etc at that price per square foot. That is just in our zip code. Those building are light years nicer than ours. All those buildings have had sales in the last 6 months at that $/sq. ft or less!
2. I had my unit on the market for almost 11 months - a loft (only 6 exist in here) - the nicest one bedroom in the building on the market in Sobu. It was appraised 6/27/17 at $135k for 910 square feet. That is $148.35/ft.
3. We are now flagged as a condo that banks won't loan on unless you have at least 10% down due to low reserves. I lost a deal due to this fact.
4. Our HOA fees are already 56 cents a foot. Newer, nicer buildings have much lower HOA fees/ft - around 33 cents a foot.
5. You have a YEAR to figure out where to move after the last signed contract. We live in the exact center on Atlanta, many of the buildings I mentioned you could walk to!
6. Your leaseback includes no HOA's/property tax and you can sublease.
7. More than 25% of the people here are renters. If we start to enforce the 25% cap, we lose the HOA revenue we need to keep the building afloat. The board has stated upcoming government rule changes will force their hand to enforce the rent cap.
8. Normal commercial sales agents charge 10%. When you sell yourself, you usually have to budget 6% to a realtor and 3.5% for closing costs. So 6% is a great commission rate.
9. I have owned 3 units in here since 2012. I love this place. But real estate is cyclical. If we don't take this deal, we will have wait about 10 years (5 years down, 5 years up) to see a similar one. This place was built in 1952. Go in the basement and look around. If that doesn't conjure up the image of Freddy Krueger, I don't know what will!
10. This building only zoned for certain height, etc. The fact that they want to use it for what it used to be and can close quickly, for a million more than last time is a GIFT! I was expecting $259/ft which was the last offer around 10 years ago. This is almost $30/ft higher!
11. No one has lived here more than about 15 years. This is not a childhood home, or some such with memories attached. This is a lifeboat pulling up to the Titantic - get IN and paddle AWAY fast!
Anon, I was on the board until recently, and I can vouch for Melinda's description above that much of what you characterize as mismanagement was rooted in a clear choice to ease financial burdens on owners when many were struggling during the recession. I'm not saying the board is above reproach, as the resistance to increasing dues continued well after it could be considered a necessity, but even in the best of times, it has been a balancing act between keeping things running and burdening owners beyond their ability to pay. As mentioned in the board's letter, there's already a real risk of insolvency, and the obvious steps to avoid that stand a good chance of making the situation worse. Whether or not that's down to mismanagement is a fair question, but it's also largely academic.
DeleteI'm sorry that you didn't get an accurate sense of the property's condition when you bought in, but the board's letter and o others are accurate when they say that it's just not going to get better without a lot of money coming from all of us. The sale is the best option.
The board just sent an email. They're going to start fining owners who are renting illegally starting in February 2018. The fine is about $750/month, based on daily fines, until the renters move out. I have no doubt this will cause some owners to walk away.
DeleteThat means units with nobody living in them. And, when there's a plumbing leak, it's an even bigger problem. Yes, that has happened. And, during a foreclosure, it's tough to get repairs made inside a distressed unit. So, if you live below a leak like that, it could take longer to repair (and, everyone's water is shut off).
I don't say this to scare anyone, simply relay actual events, like that Farmer's Insurance commercial.
That said, my unit, #805, will be available in the new year, if someone is renting an illegal unit and wants to rent a legal one. 1BR/2BA + 2 parking spaces.
And, I have a great realtor I can refer you to for a new place. He's got nothing to do with the assemblage and knows the intown area very well.
A sincere thank you to all who responded to my post. I now have a much better idea why people are so anxious to sell. I don't like being scared into signing, and I don't appreciate being 'outed' as a holdout - but you all took the time to educate me, and I thank you. And I do agree - now is the time to sell.
DeleteI will be signing my contract right now. Again, many thanks to each of you.
A little logical, analytical, and unemotional enlightenment goes a long way!
DeleteThanks Anon hold out for reconsidering your position after receiving sound information with which to make an unbiased informed decision.
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DeleteGreat informative posts above without the emotion. Thanks. Let's pass it on.
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DeleteThanks to all for clearly delineating the reasons why selling the building is a prudent financial decision at this time.
DeleteAlso, I have lived in this dreadful place going on 17 years! And I must say that I am quite ecstatic to be on the positive side of a cyclical real estate market!
so, just got this email, presuming from the Board -
ReplyDeleteResidents,
An 8th floor resident just reported one package being stolen from her door and one package being opened with its contents sifted through. This issue happens a lot in Buckhead condo communities, particularly during the holidays, so please take extra precautions if possible. We recommend you require a signature for delivered goods &/or that you try to retrieve packages as soon as you receive an email or text delivery notification. Also, if it's possible, please have items shipped to a post office box, your place of employment, or a secure shipping site (many Whole Foods locations have parcel boxes for Amazon deliveries). Thank you!
Disgusting. Clearly the culprit is someone living in the building, or visiting someone who does. more than likely someone on same floor - unless they are scoping floors out to see what is in front of doors - i can't help but wonder if this kind of thing that has been going on all along here at SOBU without much communication about it or if things are getting worse because of the impending sale? in the past 10 days i have heard more about things going on here than in the past 10 years.
no other point to make really except express my feelings about neighbors stealing from each other. another great reason to keep living here?
Any updated information on signed contracts or are we still at the 101? Does anyone have any more information except what is available here?
ReplyDeleteWhen we bought initially, we had a concierge. She took packages. She would let repair people into your unit. She would call you if you had guests and keep them in the lobby. And, she was just plain awesome. For those of you excited about the chance to live in a nicer place, I really appreciated the concierge. (I also really appreciated the property manager at an apartment I lived at. I keep thinking there has to be a way to do that at Sobu, but I'm not sure how.)
ReplyDeleteI'm sorry to hear about the package theft. It's happening everywhere, but it's more likely that it's either someone who is desperate or a short-term renter.
Is there a closet by the mailboxes that can be used for package delivery? Maybe where the tanning bed is/was?
I had totally forgotten all the services the concierge provided back in the day, it certainly was a nice amenity.
DeleteHi Melinda,
DeleteI'm interested in renting your unit in the new year.
Please contact me with more information.
sdabdoub6 at gmail
Thanks,
Salim
Any update on the numbers?
ReplyDeleteI reached out to Josh this morning, I believe they are planning to send out an update this evening. He said he was expecting some more contracts today.
DeleteBased on the following email I got the other day, is this assuming the building does not sale? I mean, if we don't live there after the sale, we still have the right to sublease during those 12 months to whoever, right?
ReplyDeleteOwners,
During the course of the building's re-sale efforts and contacting unit owners, it has come to the attention of the Board that there are many units being leased without the written consent of the Board of Directors. The Board has a fiduciary duty to uphold the legal documents of the Association to include enforcement of the leasing provisions. Therefore, the Board will be forced to start fining all units determined to be illegally leasing their units starting February 1st, 2017 approximately ninety (90) days from today's date. The fine is $25/day until corrected, meaning the illegal occupants have vacated the unit. This equates to a charge of approximately $750/month. While the Board has the authority to immediately impose fines, we'd like to give owners the opportunity to provide notice to their lessees/occupants so they can make arrangements. After this time a notice of violation will be sent to all units determined to be non-compliant, daily fines applied, and pursued by our law firm, Winter Capriola Zenner. Thank you in advance for your cooperation.
Yes this is IF we are not assembled. If we are all assembled this won’t happen. During the year lease back we can all sublease to whoever we want and we won’t have to provide any maintence or repairs for our tenant during that year. The new owners will cover all of that. Does that make sense?
DeleteThat's my assumption. It's hoping for the best, planning for the worst. And, encouraging anyone who hasn't signed who thinks they can keep renting illegally. It's also something that is mandated by a new federal law, if I understand correctly.
DeleteIt is good for the building to limit the number of renters, but only if people who want to leave are able to sell their units and move on. Since we have fallen into a status where that's difficult (prices won't cover losses + 10% down required for a loan), it could force more people to walk away (foreclosure), which is really bad for the remaining owners. That's been an ongoing and real problem.
I would gladly sell my unit if I could. I can't live there. Thankfully, I'm a legal renter, and plan to remain one. It's been a very long time since a legal spot to rent opened up on the list, in case anyone is hoping for that.
No updates since Monday - have we lost momentum? Any news forthcoming on the status of contracts received? Any word from people that have not signed and what may be holding them back? Has there been contact with the one unit owner that has been difficult to reach? Are there floor captains reaching out to their neighbors or was it decided not to follow thru on that? News please!
ReplyDeleteI talked to Josh Wednesday afternoon and sounds like things are coming along nicely. Maybe just call Shawn and ask him to update us on the blog.
DeleteI'm assuming they have this info but nobody has responded to me, so just in case they don't.
ReplyDeleteREGISTERED AGENT INFORMATION for SkyView Media
Registered Agent Name: Robert D Collins
Physical Address: 2870 PEACHTREE RD, #325, Fulton, ATLANTA, GA, 30305-2918, USA
Has anyone reached out to you? I will email this to Josh.
Delete