115 Signed Contracts - 17 UNSIGNED remain
Good Evening All! We have 115 signed contracts. There are only 17 that remain!
Please continue to speak to your remaining neighbors!
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...
Really Bobby and Kip?!?! What is the problem? Never did I think you two would want to ruin a good thing for us. Why?
ReplyDeleteI'm going to post this each time we have a blog post update, as we are fast approaching the deadline to sign. At just past a month since the initial developer meeting, 87% of your neighbors have agreed to sell. That alone should let you know how generous this deal is.
ReplyDeleteTo the hold outs:
A little background on me. I am a Mensa member, have an Ivy League (Wharton classes competed) degree in economics and am a cash based real estate investor. I have purchased around $600,000 in ITP condos 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, The Concorde, Park Lane on Peachtree, 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. I had to show my unit about 50 times, which means I had to waste an hour cleaning it and an hour giving building/home tours to each lookie loo. You don't have to do that in this deal - they are buying your place sight unseen! This deal would appraise my old place at $261,762, which is almost DOUBLE what it appraised for less than 6 months ago! The only reason my unit sold was because the person was hoping to be a part of the assemblage. If my 910 square foot loft with 10 foot ceilings, real HVAC, huge windows, quartz countertops, larger tub/sink, stainless professional level appliances, a back door next to your parking spot and no neighbors above you on the first floor was appraised at $135k, what is your unit worth? Not NEARLY as much as you think it is!
3. We are now flagged as a non warrantable 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 and they are going up 10% in the new year. Newer, nicer buildings have much lower HOA fees/ft - around 33 cents a foot. You not only will have a much nicer place compared to what you had before (using the proceeds from the sale and spending a similar amount), you will pay a few hundred less per month in HOA fees. The main reason our building is not appreciating is due to the fact that most of our condo fees are over $400/month. That is the invisible barrier that pushes people to look elsewhere. Ask any realtor.
5. Your leaseback includes no HOA's/property tax and you can sublease to whomever or enjoy your unit with no costs for 1 year since you already paid for it out of your sales proceeds. The new owners will also be on the hook to fix anything wrong in your unit and will probably include a concierge service for us.
6. More than 25% of the people here are renters. The board is starting to enforce that rent cap with $750/month fines for illegal renters. Only 5 people left who haven't signed are approved to rent. If we DO assemble, you can sublease to anyone you want for a year. The reason many people bought in here was due to the condo board looking the other way and allowing illegal renters - that gravy train is now over! This is a double whammy as it makes it impossible for people to rent illegally AND drains our reserves by not having the money coming from those illegal renters.
7. 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 and we should be happy to pay that amount.
8. 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. We are at the all time high in prices in the Atlanta market. One hiccup (North Korea, etc) and we could see another recession. No unit ever in the history of Sobu has ever sold for the almost $300/ft they are generously offering us. Don't forget, units in here were selling in the $20,000 range just 5 years ago, and yes, you read that number correctly! (I bought one of them).
Delete9. 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! This added about $25k to my expected return.
10. They put up a building blocking ALL of the southern facing units and destroying our skyline view from the rooftop deck. They are going to do the same to the west. If we don't take advantage of this current deal, our property values are just going to continue to plummet. Our pool may be rendered useless for getting sun depending on what they build to the west.
11. If they have to fix the plumbing, it will cost over $1,000,000. Please reread that number as many times as you need to. The roof is caving in. The building is closing in on 75 years old. The writing is on the wall here.
12: 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 Titanic - get IN and paddle AWAY fast!
13: 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!
14. Moving isn't fun, but neither is dying in a sinking ship. There are many reputable bonded/insured companies you can use, and I'm sure many would be happy to give you discount if you referred your neighbors to them.
15. I know about 5 friends/contact/neighbors here at Sobu. I have emailed/called/texted/Facebooked each one asking them to sign. I encourage you to do the same. This is a group effort!
What about Ezra and Pat too. Who’s talking to them?
ReplyDeleteThank you Mensa Anon! Your very very informative and true post should persuade anyone who is reasonable. However, it appears that we have a few who are not using good judgement. I sincerely hope that the unreasonable people have a very good reason for stalling this sale! Also, it would be very helpful to know the real reasons why they are stalling. I hope someone will reveal why 17 people remain to sign this deal. Why?
ReplyDeleteAre these post reaching any of the remaining unsigned? The unsigned should, as a courtesy, talk to your neighbors and agents about your concerns! We need to address these concerns now! Drowning your neighbors will not be an advantage to you!
ReplyDeleteMany on list of unsigned were around during the first attempt at assemblage. They know what happened as a result of holding out. This time will be no different! The economy is a fickled monster! We, the signed, are doomed and so are you, the hold outs, should this deal fall through. I hope the unsigned realize that there will be no HOA going forward when SO many can’t pay their HOA fees! Come to your senses and do the right thing!
ReplyDeleteThey are going to have to move either way. Either we walk away with some money that hopefully helps people out of the debts the building has caused some or the building gets condemned from the HOA going bankrupt and we ALL lose a huge amount of money.
ReplyDeleteCopying from previous post as I believe this is very important information:
ReplyDelete“Of the remaining non-signers these are the only ones that actually live in their unit:
Carl Weisser
Terry kizzar
Pat C
Ezra
Everyone else thinks their "rental property" has more value than our only homes. Must be nice to sit in your home with no worries about moving. Thanks holdouts!”
Only 4 actually live here, which leaves half of the list with illegal renters.
If 25% are allowed to rent legally and lets be generous and say 40-45% of the units are owner occupied that means 30-35% of the HOA funds will disappear due to $750.00 illegal renting fine plus HOA fees $400-600/month depending upon floorplan and then mortgage, taxes and insurance on top of that if the unit is not paid off which is the case in lots of units. NO ONE will pay more than $1500-1800.00 in rent to live in Sobu Flats to cover all those costs which is obviously a loss to the owner. There are basically no reserves and the repairs are only going to become more costly and more frequent with no funds to pay them. We are $50K away from insolvency/Bankruptcy . Those that can legally rent, your tenants will have the right to terminate their lease when the water and electricity is turned off due to failure to pay the utiliies due to lack of paid HOA fees by the illegal renters. I am not trying to be an alarmist or trying to exaggerate the situation. These are hard facts. The reality is, we are so fortunate to have a second chance at selling. 55-60% CANNOT carry the costs of the expenses at Sobu, if they could we would have ample reserves!!!! Please think about all the scenarios when contemplating your decision to sign or not to sign and truly question is that decision based on emotion or fact. We will not be given a third chance!
DeleteAgreed! The only reason I still own this place is because i am allowed to rent illegally. If we do not sell i will immediately short sale or forclose which i am sure there are a lot of other owners in the same position. This is going to raise the HOA fees even further than the projected 20% increase that will already be implemented.
DeleteThank you anon for that analytical look at the consequences of not signing.
DeleteI echo the sentiment of the homeowner who will foreclose short sale.
DeleteI will initially withhold HOA fees until I am forced to pay at which time I will let this property go into foreclosure. For me, a short sale is not an option , as I can not afford it.
This has been one of the worst properties I have ever owned in terms of being a financial nightmare. I have learned my lesson.
In short, I will let this property go into foreclosure to rid myself of the unexpected financial burden if this sale is not completed. Tell your stubborn neighbors they are doomed too if they don't sell.
When association fees go up and taxes go up, and quality of the building continues to go down, even with no mortgage, rental income will become a wash. Add fixing things and it's a loss. Renting is not profitable for me.
ReplyDeleteRealistically, I don't think this property is profitable for many. It is simply a bandaid to prevent them from foreclosure.
DeleteSo thats 2 foreclosures right there. Any others planning to foreclose if this deal doesn't go through? A half vacant building thats about to file bankruptcy probably isn't that desirable a place to want to live not to mention who the hell would want to rent when they could go across the street for the same money. May be powerful to present a solid number of future foreclosures.
DeleteMelinda,
DeleteCheck out the association fees and taxes at your future abode, wherever that may be. It will not be better, I assure you.
I don't want a foreclosure on my credit, so I'm planning to sell. I'm prepared to sell for 25-50% LESS than what I paid. Don't think that won't affect remaining owners because it will. It's called, "comps" as in "comparable properties". And, my view remains unaffected by the new construction, so I have a hope of getting close to the market value (25% LESS than what I paid).
ReplyDeleteThe hard part will be finding a buyer who has enough money as a downpayment.
My next option will be to form a corporation, then have a foreclosure that affects the corporation, less me as a person. Step #1 will be to stop paying association fees, of course.
I'm jumping off the Titanic and swimming if I have to, but the offer is a lifeboat that has room for all of us in it. We can't launch it until everyone is in it, so let's continue to reach out to the unsigned.
#lifeboat
#notgoingdownwiththeunsigned
#sellsobu
Does anyone have email addresses for the people who haven't signed, yet? I'd be happy to send an email to each one of them, especially the ones I know.
ReplyDeleteso $1500ish a month loss to association so far who any others?
ReplyDeleteWhile I understand the frustration this process is causing, I'm disappointed to see all of the declarations of intent to default that are being casually tossed around. My hope I'd that we'll sell, and I don't want anyone under any falsely rosy notions of how things will be going forward, but a list of us, probably most of us, will be stuck here for some time if this deal doesn't go through. I understand anger at the idea of others holding out for more and thereby jeopardizing all of us, but intentionally going into foreclosure/refusing to pay your dues does the same thing.
ReplyDeleteIt’s nothing intentional. My renter covers mortgage and HOA for me. Without that income I can’t afford to pay.if they want to fine illegal renters that’s my only option. Just being real with y’all
DeleteYes, nothing intentional. This is the reality. This conversion was never intended to last this long. It lasted this long because of holdouts and the economy.
ReplyDeleteNow, we have a great deal before us and there are a few willing to ruin it for us. The HOA has no money because of the amount of foreclosures that occurred after the initial attempt to sell bldg fell through. This will surely happen again if deal is a bust.
Simply and realistically put, we are all doomed!
My assumption is that this sale is not going through. The "holdouts" clearly don't recognize this sale as being financially advantageous to them. If they did, they would have signed. Though this condo association is a cooperative of sorts, individuals can still do as they please. All the cajoling, peer pressure and veiled threats of doom are not going to change their decisions. In fact, it seems to be hardening their position. That being said, we all know who the holdouts are. After December 1st, we are going to have to live together peacefully. However, I would like to hear from each of them in this forum - publicly - to understand their positions.
DeleteOn another note, I find it very frustrating that the Board has turned a blind eye to the illegal renters in the past. The threat of daily fines and legal action should not be just a threat. We need action!!! After December 1st we should take the steps to make Sobu a desirable place to OWN. We should not just throw up our hands, gather our marbles and run home to mommy. Correct me if I'm wrong (and I am sure the Mensa guy will) the foreclosures occurred when the economy softened and real estate bubble popped.
Bless your heart. Nothing. I repeat nothing, will make the bathrooms in my unit larger (the reason I lost a sale). Nothing will fix the views that others are losing and will lose. Nothing will get central heating and air in our units. Nothing will get sun on our pool when other buildings block it. Nothing will get a fireplace in my unit. Nothing will get a second bedroom in my unit. Nothing. Yet, those are the features people are looking for. Nothing will make this a green building.
DeleteNothing will get someone to pay to buy in our old building when they can buy in a whole bunch of others that are newer.
And, nothing other than a lot of money will get the roof and pipes fixed. That comes from owners.
If someone moved away for their job, or their family, or their health, or had a baby, they are never moving back to Sobu. When as a legal renter, I lose money every month. A lot of money. I'm lucky. I can still afford to do it, but let me be clear. I'm not moving back. I wanted to sell years ago. It's been impossible. I never wanted to own Sobu for 17 years. Never. I'm waiting until I can afford to sell, but the market just keeps ignoring Sobu.
Look at the comps. Seriously. Look at them. Look at how long poor how low people had to go, or look at how unsophisticated a buyer had to be. This blog certainly won't help me get my unit sold.
So many units are one bedrooms, and the times in your life that works is when you're young and poor or old and poor. Otherwise, people need another bedroom for children, for friends, for guests, for an office, for a craft room, for any number of purposes.
That said, a 1BR unit with $500/month association fees is not at all desirable, especially if it's not a brand new green building with sleek appliances and a concierge.
Believe what you want, but Sobu was most desirable before I moved in. I was the 6th person to move in.
Let it go, holdouts.
And, if you've already signed, help convince others.
Don't give up!
Thank you, Melinda. What you wrote is sooooo true. I feel the same way. I can't sell my unit either for what I owe ( nevermind what I paid). And yes, this bldg is marked.
DeleteWhen you call to ask for a refinance. The agents will tell you that they can't seen to find any info on bldg, but can find info on 325 Paces, Eclipse, Ovation, etc. Then they ask is there anything wrong with the building? "No, nothing," I would reply. Well, we can't refinance your unit without an appraisal for which you'll have to pay. There is no guarantee of a loan and you may lose the appraisal cost.
Damn, I have tried to refi for 2 years now. One agent said that I would be better off if I lived in 325 Paces. Ha, I told him that I wished. Bye!
It is clear that holdouts do not care about the value of their own property. This is the most dangerous situation, as they have nothing to lose. Until they realize what they have to lose, the unsign will not sign. Let's hope the unsigned see the light soon. :-(.
ReplyDeleteIf you are not going to sign - PLEASE JUST SAY THAT and we'll be done. There is no benefit to signing last or at last minute. The contract is non-negotiable. There are no additional dollars to be had. All info needed to make a decision has been given and discussed ad nauseam. Shit or get off the pot. Bye.
ReplyDeleteBravely stated. Even if you are posting anonymously.
DeleteIt's HOA suicide to start fining those who rent illegally. They will be forced to sell for a substantial loss or go into foreclosure. However, an HOA bankruptcy might force the building to sell, so perhaps that is the idea.
ReplyDeleteNow, there might be a strategy in a bankrupt HOA. Maybe a fortune in disguise. Hmm, maybe this will work out after all.
DeleteAll illegal renters will be fined. So it is written, so it shall be done. Let the fining commence!
DeleteIt's my understanding that there is a new federal law that the board must be in compliance with, hence enforcing the rental cap. It's not the board being wishy washy, but it's them fulfilling their fiduciary duty.
ReplyDeleteYou are correct. The board' s hands are tied. This is the law.
DeleteWe need to know who has spoken to whom at this point. Many of us may be assuming that others have reached out to certain holdouts and are therefore not doing so themselves. If you have talked to any of the holdouts personally, please say so in a comment on the blog. Once again, please consider including your name when commenting, especially in this instance. It's clearly time for a full court press, but we'll be most effective if we share who we are, who we've talked to, and what we know. At this point, I have not spoken to anyone, but I intend to do so in the next few days.
ReplyDeleteI need contact info, but will gladly contact people.
ReplyDeleteI have a legal team looking into ways to complete this deal. Tell me that a strategy might be to sue the HOA on grounds that they failed to maintain proper reserves, which has caused a hardship on many owners ( in terms of the owners' ability to sell). The goal of suit is to have HOA buy the hardship units for market value. This will surely bankrupt the HOA and the HOA will be forced to sell the bldg.
ReplyDeleteDesperate problems call for desperate.and creative solutions.
Different owners over the past few weeks have asked on multiple occasions for the non-signer's contact information. I haven't seen it. Will this be provided or is it confidential?
Deleteyou would be suing yourself. Doesn't make sense because you are the HOA.
DeleteCan we all stop with the silly chatter and threats and figure out a grown up professional way to get the deal done?
No one is suing. The lawyers would suck you dry and accomplish nothing! After they suck you dry, you will not be able to pay your HOA fees, assessments and illegal renting fines and this beautiful property will fall into disrepair and be worth nothing! Stop this silly talk.
DeleteI have yet to speak to any other owners/renters, but fully intend to help any way I can. I am planning on putting a note under the doors or illegal renters to let them know the situation regarding the fines about to be levied upon their landlords.
ReplyDeleteI do, however, find it hard to speak with fellow unit owners when I know people have mentioned talking to some, but not sharing who they are. I don’t want to be in a position where they are either a) being bombarded with information that has nothing to do with their holding out or b) they are intending to sign but have a holdup such as a legal matter that will be sorted out before December 1st.
I reccomend we get together as soon as possible to devise a plan of attack as to how to proceed.
Would people be available Monday evening to meet in the gym or cyber center around 6? This way we can all work together as a unified front to accomplish our common goal.
Just talked to one of the holdouts. She said she will be signing on the last day no matter what. Why on earth would you wait? Don't you see if doesn't make sense to do that. It hurts the deal.
ReplyDeleteAlso, people need to stop saying talking about THEIR UNIT being so amazing. This isn't about how much work you've put into your unit. It doesn't matter. The SOBU Flats BUILDING is the problem. The building needs almost 2 million in repairs and our HOA has something like $5000 in reserves. HELLO!!!!
To quote the other people here.... "This is a gift". They're paying us for the cost of the land and basing it on price per square foot. Stop trying to justify that your unit is better than someone else's therefore you "DESERVE" more money. This is not one of those deals. They're paying us $100 more a square foot than the market value ANNNNND nobody here can get fair market anyway, so it's more like we're getting $120-130 more a square foot.
There are some wonderful people in this building. Some elderly people too. This damn building is going to go into foreclosure and severely hurt our seniors who live here. They have a huge opportunity to make some much needed extra money to live out their days, and people are playing games.
Shame on these selfish holdouts!!! I want to know who they are. Some are legitimately working on their contracts. I know that, but who are the real trouble makers? I want to know who are the responsible parties. Playing games with peoples lives to try and make a few extra bucks on a deal that is already heaven sent.
We need to step it up this week and talk to our neighbors. This is going to hurt us all if we don't swallow our pride, and worry about hurting someones feelings. This is such a no brainer!!!
Shame on the holdouts. I am calling Josh on Monday to find out who they are. There are no valid reasons to stay a this point. This building is going to bleed EVERYONE dry.
If they want to sign on the last day, so be it. At least they are signing.
DeleteIt would be very helpful to know who that is so we can focus our efforts elseware.
contact info found online re: some of the non-signers, we can all reach out to make sure they have all information
ReplyDelete109 Salem owns a restaurant --https://www.localonnorth.com/
715 Carter and Julia have a company --- http://www.chartreuseinteriordesign.com/
I will keep trying to find ways to contact
Unit 201, Nadia Carr: ncarrd@yahoo.com.
DeleteIt's too bad the deal wasn't structured to reward the ones who sign early (lower closing costs) to incent early signing and eliminate this kind of thing.
ReplyDeleteCan Josh add some incentive, now?
Nit ve flippant, but I am sorry. More than $100 dollars over the current market rate per square ft in Buckhead, one of the most expensive areas in the country, should be enough incentive to reasonable people! >:-(!
Delete*Not to be flippant...
DeleteAgreed, but an early signing incentive could have pushed some.
DeleteWaiting until the last day is risky. Technology can fail and the deadline will have passed.
Those of us who signed early ought to be rewarded. The holdouts think they'll be rewarded or get something extra. It's not incenting the behavior we want.
Sign your contracts now and walk away from a financial sinkhole! You are not making any money or increasing the value of the building nor your unit by holding out or staying! Do us all a favor, holdouts, and exercise your power trip and save us all from this financial disaster. You, holdouts, have the power! Increase your dopamine by exercising that power to help the non-powerful who've already signed avoid a financial nightmare!
ReplyDeleteWe are so, so close but yet so far. The amount of people supporting this deal is incredible because they are readly able to weigh out the pros (of which there are some) and the cons (of which there are many more) of staying here. But the reality is one person negates the 130 who sign. Everyone please for the love of God sign your contract!!!!
ReplyDeleteEverybody take a deep breath, don't panic. We have 2 weeks left. If our agents need our help convincing an individual owner, I am sure they will ask for it. Until then, breathe. Stay calm. Be patient.
ReplyDeleteThey are asking for help. Every time they post something they tell us to speak up. That’s what we need to do.
DeleteWe need to call and knock on doors.
We have 12 days. With Thanksgiving next week, another delay. No need to drag it out, no advantage to it. Sign.
DeleteLets get straight to the point - all the valid reasons have been given time and time again on this blog, they have not changed. It has also been stated several times that the persons that haven't signed are probably not reading. It has also been asked to get contact information for persons off property, which hasn't happened yet. In the meantime we need to be knocking on doors of the persons on property that haven't signed yet. No other way, and I personally am not going to concern myself if they have been visited by someone else already. A lot to gain if we can convince and a great to lose if we don't try. Knock on doors! The time to wait any longer is over!
DeletePlease don't harass the people who haven't signed yet. I am as frustrated as anyone, I was here when we had the last assemblage. I think things are better than we think they are. Pissing off the remaining unsigned owners isn't the answer. If you know any of them personally, attempting a respectful conversation to seek understanding seems the only productive route. I talk to Josh every few days, and things are still looking good. Lets stay positive. It's going to happen!!!!
DeleteDear fellow owners. I've been an owner along side all of you for many years. Buying this condo has been the biggest financial mistake of my life. Like many, I suffered through several years of actually paying for two mortgages at once, because I had to move away when the company I worked for closed, and we already had too many renters. My unit has had major water damage on multiple occasions being on the top floor. I can't even begin to tell you the debt that piled up and all the stress this was to my family. But we were very blessed and somehow by the grace of God made it through. My business is growing, and while I'm not out of debt, I know I eventually will be with or without this deal going through. But I truly feel for the ones less fortunate who still live amidst financial hardship. This deal is their only lifeline and way out! That's why it was a no-brainer for me to sign the deal as I did. While it's human nature to get frustrated and angry, I realize this is part a reaction to the fear we have of the deal falling thorough and the agony of not knowing what are in these 17 people's minds and hearts. I'm not going to allow my fear to turn to hate. Instead, I decided to turn to God and pray. I pray that God can help these individuals make the right decision for them and for so many others, and that the owners who have signed join me in extending peace to these people and try to help them, not threaten them. I pray all the fellow owners who have suffered with financial duress and heartache will soon receive the peace and comfort of this deal getting done. We all need to take a moment and reflect on what Thanksgiving is all about. I'm very thankful for Josh and all the work his team has done to get this deal done. I'm very thankful to the board who have worked very hard to help us through this crisis. I'm thankful to all the owners who have signed, and I'm thankful to all the holdouts who took the time to read this message. For those of you so inclined, please join me in praying that God will help us get this deal done.
DeleteMark 11:24 - Therefore I tell you, whatever you ask in prayer, believe that you have received it, and it will be yours.
Thanks, Anon. I asked our small group to pray for these holdouts today. I'd pray they have peace and comfort to move ahead.
Delete