Only 15 contracts remain - We have 117 Signed.
Good morning everyone. We now have 117 contracts signed. We only have 15 contracts left! This is a positive movement for a wonderful opportunity. Please continue to support each other by speaking with your remaining unsigned neighbors!
I'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, 89% 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! My loft unit also appraises for $10,000 more than the standard units (8 foot ceilings) due to a $5,000 upgrade for ceiling height and $5,000 upgrade for having a real HVAC system (not a wall unit).
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!
16. For example, just between myself and two friends who live in the building, our total gross profits between the 3 of us on our 3 units would be $422,381 if the assemblage goes through. Without it, we are looking at $107,670 in gross profit if we sell at current market value. That is almost a 4x difference. If the holdouts are costing just 3 people a chance to make an average of almost $141,000 a piece, what are they doing to the other 114 people who have already signed? At this point 11% of the people are holding up the financial futures of the other 89%. This is life changing money for most people.
Hello Anonymous Mensa,
DeleteI cannot get past your post without responding. Looking forward to the other posts.
Your points are not quite mensa-worthy. For example, while 10% realty fees for commercial property may be the norm, thus making 6% a deal in your mind, ponder this: why would someone not interested in selling find that to be a bargain?
I'd respond to the other points, but I need to read more of the blog.
I appreciate the updated counts!
ReplyDeleteThanks!
Mensa, thanks for informative �� post! Keep it up! You'll have another opportunity to post. Just learned we have 118 now with 14 to go!
ReplyDeleteHello All,
ReplyDeleteI just had a pleasant conversation with Ezra. He said he does not want to hold everyone up, and if everyone else agrees and they can find him something he can switch to, he is more than willing. He has spoken with Josh and they know the situation.
Pat also came by while we were speaking. She does not want to move, but her son is reviewing the contract and will be making the decision. She is reading this blog, and is not very happy with how her name is being brought up on here in a negative light. I can tell you she seemed very frustrated with the accusations and name calling on here.
Please remember these are our neighbors, and harassing is not helping, only hurting. If you feel inclined to speak with your neighbors to understand their point of view, please be kind and non threatening. Their opinions in this matter count just like ours.
I am 100% on board for selling and agree that I will be disappointed as well if this does not go through. As someone who does not plan on living here much longer and am not able to lease, I will be either leaving this vacant, or selling to try to break even on what I paid, which will not help property values.
Thanks for the detailed update. I'm not sure I understand Ezra's situation. He's looking four a new place to live before deciding? He'll have plenty of time and I can refer him to my realtor, if he's interested.
DeleteLet's say the deal closes in February 2018 (90 days from now), it's my understanding the 12-month lease back starts after that. So, people have 15 months from now before they have to move.
And, it's infinitely easier to find a new place when you are relaxed about a moving date.
I've typically found and made offers and closed within 90 days from start to finish.
Sobu residents won't be rushed and can take their time to find just the right place.
And, they won't have to think about paying for repairs between closing on Sobu and closing on their new place.
Their new place might not be on the market, yet, as most people try to avoid moving during the holidays. Spring is when a lot of people look to sell.
I hope that helps. I appreciate the information as I live in Portland, Oregon. Even in this hot market, we found a place. A good realtor and a good app can make new home shopping fun. You don't have to spend a lot of time driving from place to place.
I use the app Redfin. There are others that may be better in Atlanta, but it's easy to use and you can flip through photos on your sofa. Just set up your selections and search.
Recently had a pleasant conversation with Ezra as well and he told me the same information that he related to the previous commenter. For reasons not disclosed, this is how Ezra has to complete the deal. Let's respect that requirement. The realtors are aware and have a plan in place once more are signed.
DeleteI think that the intention of other homeowners is not to harass their neighboring homeowners, but to encourage those unsigned to realize the exigency of the situation.
I hope for the best and prepare for the much welcome transition.
It is so encouraging to see the numbers creep up, even if slowly as we move closer to the deadline. I’m saddened to learn certain non-signers are feeling maligned by comments on the blog. My guess is this results from frustration from the signers who see this benefit so clearly.
ReplyDeleteThere are some inescapable expenses in our futures which no one wants to face.
1. It’s suggested the roof repair may be as much as a million dollars. If a special assessment is successful in raising funds from 75% of the homeowners, that’s $10,000 each. $10,000 which does not add to resale values, and doesn’t improve individual units. Even if that expense can be miraculously spread out over time, which is doubtful recognizing the urgency of that sort of repair, it’s a heavy monthly burden.
2. The Board’s commendable commitment to crack down on unapproved renters is sure to have an effect on HOA dues collected.
3. A repair to the building plumbing system, equally as urgent, could come at the same time as a roof repair, with similar special assessment and homeowner burden. Not to mention the individual cost of interior repairs during the plumbing repairs (walls, carpet, paint, etc., the loss of somewhere to live during the repairs, and for legal renters, the loss of rental income during the period.
4. We’ve already been notified of a 10% increase in monthly HOA assessments next year for an average of $50/month. With so little in reserves already, it’s a good bet this will be an ongoing increase.
5. Less dramatic repairs (elevator, paving, gate repairs, etc.) will continue to mount.
6. Residents in Fulton Count/City of Atlanta received huge increases in their property tax bills this year. Luckily, due to errors in the process, these increases were delayed, but there’s no question they are coming, especially to a building in the heart of Buckhead with a land value of $28,000,000.
7. The net proceeds number includes the opportunity for a resident to live, essentially free, for up to 12 months if they decide to put off their purchase of a new property that long. No HOA dues, no repair costs, and if one has a mortgage, no interest or tax payments. The HOA dues and property tax savings alone is around $6,500 on average per unit. If no mortgage, the proceeds, even invested at just 1% adds another $1,500- $2,000 to the number. For an approved renter, or anyone subletting their unit during those twelve months, even at a discounted rate, an expense- free $7,000- $10,000 is possible.
Hopefully this assemblage goes through and anyone who has trepidations about moving on will see the benefit of joining the majority of owners who see the not only the benefit, but the necessity of taking advantage of this opportunity.
An unapproved renter will be able to continue renting their unit without penalty and without HOA dues, increasing their net by as much as $5,000 for a year. At an average net of $160,000, an investor can tax-free exchange, for example, for a three bedroom single family house in somewhere like Lawrenceville where possible rent would exceed $1200 without the high Sobu HOA dues.
DeleteI am too not happy about some owners maligning other owners. Let's work with civility to see that this project comes to fruition.
DeleteFor those still reviewing their contracts, please contact your neighbors and tell them that you are working on your contracts and will have them signed by the due date. We know there is a lot to read and comprehend and some of us are slower than others. Take your time, but please sign before the deadline.
You just divided the estimated assessment evenly among 75 (your number of members you think will pay). Curious, do you actually believe that each condo owner pays the same amount, regardless of unit size?
DeleteNo, Unknown. It was meant to be an average among 75 probable paying units. Just like HOA dues, units of different sizes pay different amounts.
DeleteStay positive!!!!!
ReplyDeletePositively hoping that the unsigned are just dealing with technical issues that can be resolved. Hope there are no other reason for the unsign to not sign by the due date. Any other reason would be unreasonable!
ReplyDeleteFor those who believe that roofing and plumbing repair are scare tactics, I would say just look at the almost the nonstop visits by Hill Mechanical. Also, remember the resident who had leaks as a result of the compromised roof.
ReplyDeleteIf the roof cost $10,000 per unit owner, will not be able to pay. I suspect that most will not be able to pay.
The plumbing issue is an ongoing problems. Leaks abound in every corner of this bldg. I have a hole in my bathroom tile because of a leak behind the wall that leak into common area of the bldg. Please don't make me refuse to pay another $5000 for plumbing repairs that are needed.
In short, we are financially doomed if we lose this deal! Do the right thing and sign your contracts!
Trickle, trickle slowly we approach the finish line
ReplyDeleteHowever remember the deal is not done until the last owner signs
The reasons for selling are true and sound
We must sell to remain financially above ground
Do your part and find that line This is the place where you should sign!
You're my spirit animal!
DeleteFor those of you that don't live here, these are a few recent things/happenings you should know. First of all I am an original owner and have lived here for 16 years. The quality of life here is AWFUL!! Both passenger elevators were down for 3 full days this past weekend leaving only the freight elevator for 132 units. This is a REGULAR occurrence and very costly to have the elevator company come out for after hours calls or weekends to fix. People are leaving their trash all over the property because they are too lazy to go to the dumpster which is usually overflowing or broken. Again, a regular occurrence.
ReplyDeleteThe latest email blast sent out Monday was regarding a few sad topics. Security issue and drug use on the property. First, on Friday night an unruly, belligerent guest was causing a scene to the point where the officer had to pull his gun. The guest then berated and threatened to kill to the officer while he tried to get him out of the building. Secondly, its a known fact that we have had drug dealers living in the building over the years, one who is currently serving time in a federal prison. Imagine the caliber of guests that were visiting him at all hours that were not people I wanted to have roaming the halls of my HOME. WOULD YOU???? The smell of marijuana on several floors is a daily thing. How embarrassing to bring my family here to the stench of that.
People don't leash their dogs nor pick up after them. Not only outside, but when the dogs use the elevators, halls and common areas as their bathroom. Leaving it to sit and the poor cleaning company has to clean it up. Talking about the cleaning company, they had to resort to leaving notes in the bathrooms asking people to please stop stealing the toilet paper. Amazing.
Again, I have lived here for 16 years and its gotten so bad that I am embarrassed to bring anyone here. For anyone not living here that hasn't signed you should know it is just going to get worse here. As I have witnessed over 16 years. And if you are holding out to rent your unit, legal or not, how will you find a renter to live in a building with the incidents I just mentioned above happening all the time.
The drug dealer was a legal renter but lived at Sobu probably 10 years or more putting everyone's lives at risk. The Marshall came in during the middle of the night to apprehend him. He wasn't the first and he won't be the last. Thankfully he is serving time in a federal prison for his "dealings".
ReplyDeleteAnother drug dealer in the building was "squatting" in a unit and on his eviction day caused so much damage by flooding a large portion of the first floor and basement. Tried to pull out the washer and dryer, busting a pipe that spewed water for hours during the middle of the night.
Sounds like a great place to live, huh???
Whereas these incidents in the previous posts are disturbing, they are the norm and no place is immune. However, these types of incidence increase when a condo property is not 75% or more owner occupied. This type of issue will only get worst if this deal does not go through as a result of people illegally renting to save their financial lives!
ReplyDelete*are not the norm
ReplyDeleteInteresting little tidbit.... The owner of the currently incarcerated drug dealer knew full and well that the renter was a drug dealer and continued to rent to him. Putting all of the other residents safety at risk for over 10 years. Interestingly enough still hasn't signed and is on the list. If this doesn't go through, we surely hope better judgement is used in the future in selecting renters since able to legally rent.
ReplyDeleteDid anyone seek legal recourse for what this "landlord" was doing?
DeleteOh how I know.... Many owners, including myself complained to the owner several times regarding the renter and his illegal and dangerous activity, yet he was allowed to stay over 10 years. If the authorities wouldn't have stepped in with the long term investigation that ultimately brought him down, I am positive he would still live at Sobu.
ReplyDeleteI would think that the Board would have some latitude to deny this owner the ability to rent legally, if that is the result. And, if this renter is incarcerated, is the unit rented? Did the owner meet the obligation of keeping the unit rented with only a 90-day gap between renters? There are others who wouldn't abuse the privilege of renting, but perhaps the owner was getting another benefit. It would be nice to know what unit number this criminal lived in.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteAfter the drug dealer was arrested there was another renter promptly in there so I assume within the 90 days. I don't ever remember the owner ever living in the building, rather an investment and able to get on the list promptly to rent. The above posts mention marijuana smell all the time in the building which I smell almost nightly as well, this guy was dealing far worse drugs than that. Drugs are drugs but the thugs living in the building over the years dealing them are dangerous to other residents. The one that flooded the first floor had an altercation with his "associates" and they were running down the hall and parking lot after each other pointing guns at each other, speeding out of the gate, in broad daylight on a Saturday afternoon. He was an illegal renter.... I witnessed it.
ReplyDeleteMy husband and I own a unit on the fourth floor. We had to move out of state for work but had our fair share of issues while living there. We complained multiple times about the people in and out of the building, had someone try to get into our unit early in the morning one day and had so many packages stolen that we finally got a UPS box. For us, this isn’t a business deal but an opportunity to move on with our lives and get off a sinking ship. I understand people are all in different stages and situations but I truly hope the remaining holdouts understand what will happen to all of us, financially, if this does not go through. I realize this may be an inconvience for some to relocate but it could potentially lead to financial ruin for many. If this deal does not go through, our options will be limited. Wishing you all a Happy Thanksgiving and hoping we have cause to celebrate on December 1st!
DeleteBlack Friday this year would be a good day to have all of the contracts signed, wouldn't it? We could get out of the red and into the black, financially.
ReplyDeleteI live on the on the 4th floor; the drug dealer was in 402 and caused havoc for innocent residents on a constant basis as well as everyone in the building. For over 10 years. People coming and going all times of the day and night, my packages being stolen, and at 5AM someone trying to break into my house as the "drug dealer" fought with him up and down the hall. The owner also owns unit 708 also and has had equally bad renters.
ReplyDeleteYet to sign...
I guess that no update means that no additional owners have sign? What is the major malfunction of the remaining unsigned owners? Come on! With the exception of those owners who are working diligently with the realtor team, there is no good reason (in anyone's world) for not signing.
ReplyDelete11 more days left. Im hoping the numbers have went down and that an update just hasn't been posted yet. I would imagine nothing will happen on Thanksgiving, so essentially 10 days remain. Encourage people to knock on doors starting Friday. Nothing ugly, just hard facts. Cost of upkeep, repair, HOAs, Taxes.... The pool wont open this upcoming summer. Cost is to high to maintain when we have more critical expenses to cover....etc..
DeleteFor those saying "I won't be able to find anything comparable nearby" https://www.zillow.com/homes/for_sale/Atlanta-GA/2092001145_zpid/37211_rid/2-_beds/56000-396000_price/207-1464_mp/mostrecentchange_sort/33.946777,-84.260331,33.586595,-84.70047_rect/10_zm/X1.dash.SS.dash.1rns5d3rimdit_8l13j_sse/2_p/
DeleteAnd, this is our competition and why we can't sell as individuals.
ReplyDeleteCheck these out:
https://www.zillow.com/homes/comps_for_sale/2092001145_zpid/