We have 110 Signed Contracts - Here is the list of remaining individuals who have NOT SIGNED
Good everyone. We're at 110 Signed Contracts. Please see the link below for updated information on who has yet to sign their contracts.
There are a lot of questions about timing and how to help during this process. I will address this the best I can. All contracts must be turned in to, Josh Reeves, by December 1st, which is a Friday. That is 17 days away!
What can you do to help? The short answer is communication. I would suggest you call your neighbors and talk with them. --> I cannot stress this enough <--. Help them understand how the deal is structured, what it means to everyone at SOBU if it does or does not go through, and find out why they haven't signed. Josh and I are here to help, so please let us know.
I know this is available on the blog in a different section, but please review the info below to better understand how the contract with the buyer is setup. It will help you when you talk with your neighbors.
Also, please remember that the approximate NET TO SELLER is
what you make after all fees (one year rent and commissions) have been paid. Some
are misunderstanding this part, which makes them feel they are still needing to pay more.
Stay positive everyone and work together! We're almost there!
For everyone who wasn't able to attend the assemblage meeting:
- This offer requires 100% participation, which means ALL 132 unit owners must sign their contracts.
- The contracts are non-negotiable.
- The total offering price is $28M for all 132 units = $287.65 per Square Foot of unit space.
- All major appliances, light fixtures, and plumbing fixtures will remain with the sale.
- Buyer is requiring a one year lease back for one full year after closing, and to be paid in full at the time of closing
- Seller can sublease
- All utilities are included in the rents, which means no HOA fees for the last year.
- All parking spaces currently assigned to the units will remain the same
- Lease monthly rental rate is $2.00 per SF. Example: $2.00 SF X 800 SF = $1600.00 per a month rent
- Contracts are being emailed out electronically via DocuSign. (If you were not in the meeting, please provide us with your email and contact information as soon as possible so we can send you the information).
- The assemblage team consists of Josh Reeves, Shawn Daugherty, and Annie Boland with Atlanta Fine Homes Sotheby’s Realty.
- sobuflatsbuckhead.blogspot.com blog will be updated with details of who has signed a contract and who hasn’t signed in order to allow for transparency on how things are progressing.
Facts To Know:
Q: What is soonest or latest date this could close?
A: 30 days after being 100% assembled / all contracts signed.
Q: Once the buyer's purchase, how long can I or my tenant remain on the property?
A: For one year.
Q: Once the buyer's purchase, do I have to pay anything to live here (or have my tenants live here) for that one year?
A: After paying the one years rent at closing, all utilities & property maintenance will be the responsibility of the new property owner.
Q: Does the purchase price include my one-year rental fee and the real estate commissions?
A: No. One year of rent, plus 6% real estate commissions will be deducted from the total contract sales price.
Q: Is the purchase price negotiable?
A: No. The contract terms were negotiated with prospective buyers for several months. The offer from the purchaser has no financing contingencies. The $28 million dollar purchase price is firm. The math is simple: purchase price divided by unit square footage equals the price per foot. Every unit owner sales price is based on a cost per square foot. Owners will be paid based off SQ totals on the floor plans provided in the condominium documents. (the purchase price of $28M is above the property appraised value of the property)
Q: What if I need help finding a place here in the area for a similar price?
A: We have designated agents whose names we will post on the blog who can assist you.
Q: What if I have a tenant in place?
A: All current leases will need to be terminated at the time of closing. The new lease with the buyer will allow subleasing, making it easy to keep current tenants in place for up to one year after closing.
20 more contracts to be signed! A bit worrisome that we haven't been able to get in touch with 216 and get a contract on their hands yet....
ReplyDeleteThank you for the update. It seems a lot of the people still to sign had "in contact with agent" and the likes next to them on the previous "101 contracts signed" document. Could you share some insight on how that is going and being handled? Do some of these units seem like they will be signing but have not done so yet due to questions? Or is it something more serious about not seeing the deterioration of the building that a fellow resident could assist with?
ReplyDeleteI believe the group active here on the blog is willing to step in and help where we can, but doing so in a more unified and organized front seems to be the best way to get these final contracts signed.
It also seems there has been many discussion on the whereabouts of 216. Are you, the agents, working on this? Or do we need to take this into our own hands?
Totally willing to help out anyway we can. It would be helpful to understand what the primary reasons are that the 20 left have not signed. Without sharing specific details that would identify the individual perhaps, why are they not comfortable with this deal?
ReplyDeleteIs someone already in contact with Bobby and Kip? They were former members of the board and supported the previous assemblage. I'd be curious to know if they're planning to sign poor have some real reservation.
ReplyDeleteCan neighbors please talk to Pat? She was one of three holdouts last time. She just didn't want to move. Ever.
Pat eventually signed, but was one of the last if I recall correctly - she waited until the very end. Is she not a former Board member also?
DeleteI heard that there has been conversation between brokers and Kip but not sure where he stands right now. Clearly some reservation going on since he hasn't signed yet.
Are we having any additional meetings?
DeleteThere was an informal meeting on Friday, not many came by from what I hear.
DeleteIf we manage to get signatures from everyone on the list but are still unable to get in touch with the owner of 216, will the entire deal stall as a result?
Isn't there an annual meeting on Sunday, December 3rd, 2107 in the fitness center?
ReplyDeleteWe could all come and see where we stand and what this issues are and see if we can resolve it then and there.
I was talking with one of the hold outs today and their reasoning is not right. This individual told me that we have "the strongest building in the neighborhood" and that if there are some issues we should all pay to fix them.
Now, I'm thinking to myself, this building was build in 1952. I have lived in this building for a number of years and there are some issues, mainly plumbing and maintenance, that are happening on an on going basis. I'm thinking to myself that he is so wrong about that that maybe the best way to convince some of the hold outs is through a conversation, a meeting where once again we need to repeat all that we heard on the October 17 meeting. Maybe some people need to hear it again.
And it seems that he knows of other hold outs who don't want to move at all. Now, they wouldn't mind if some else do all that relocation work for them. I don't think that some of the hold outs are motivated by money offer itself. Can the board present them with possible solutions for easy relocation? Are there any real estate agents who could reach out to hold outs and offer their help in finding a comparable condo nearby that is priced at similar price?
In either case, I have signed my contract within of 10 minutes of receiving it. The financial aspect of the offer is great. There are condos in this building that haven't been sold for months listed below market value. My condo was one of those listed. We as a building aren't that attractive at the moment with all other buildings around us. This offer at the moment represent the best value for the money we can possible get. From financial point of view, this is an easy choice.
But as I mentioned previously, it seems to me that some of the holdouts that obviously aren't financially motivated, should maybe be more inclined to change their mind if someone helps them relocate nearby and do all that work for them.
Once again, I think that we all should come on December 3, 2017 meeting in Fitness Center and see where we stand and what this issues are and see if we can resolve it then and there.
I have heard that some of the holdouts are in communication with each other and that seems to confirm. They are supporting each other's feelings and seem to be united in that the problems of the building are exaggerated, and if not, that we should do what is necessary to preserve the integrity of it and do the necessary repairs. On the other hand I know that it would present financial hardship to some of them, according to what I was told - so it seems an odd argument. "let's do what we need to do to upkeep the building BUT I really can't afford to pay higher fees to do so" How does that work exactly?
DeleteAt least we are getting a better idea of what is on the minds of some of the holdouts.
I was unaware of a meeting on the 3rd - can anyone confirm? Regardless, it is posted above that the contracts need to be turned in by Dec 1st. So a meeting on the 3rd is past the deadline unless it is extended.
The meeting on the 3rd is the Annual Budget Meeting - nothing to do with the sale of the building. It also informed us of a 10% dues increase. That will make mine will be almost $500 a month next year, and I know others will be higher as I am in a "mid-sized" unit.
DeleteVery disheartening to hear about he holdouts just because they don't want to move, even though it is going to put a lot of people in a very difficult financial situation. If they can't pay, per the statements above, and the people who can no longer rent their units will also potentially stop paying as well as others who cant afford it, they will be moving in a year no matter what due to the building falling into bankruptcy.
Wow. A 10% increase puts me close to the $600 mark. That increase plus any special assessments for the year is getting a little prohibitive. I am sure that it will force some owners into default to the HOA. The increases are a reality and we need to expect more of them if this sale does not go thru. The board made it clear during the meeting, they are doing all they can but without the sale they have to do whats best. It will not extend the life of the building indefinitely however, the resources just aren't there.
DeleteHow could people think the problems of the building are exaggerated! Are they not here when water is constantly being turned off for repairs? Do they not see all the water problems by the back door entrance and in the first floor hallways! Has anyone been down to moldy basement recently? How it's holding up is a miracle. The roof is a different story but god knows we have plenty of unit owner feedback on that! open your eyes you don't have to look too far to see the building has structure issues.
DeleteI know it's a random question but because of age of building is it possible that the pipes are lead?
ReplyDeleteI googled it and information I saw said that in buildings built before 60's it was possible.
Does anyone know? Should we even be drinking the water if it is? Call me stupid but I never thought about it until the conversation about the pipes keeps coming up. Anyone have any information on it?
I know they are not lead, but I do not recall what they are. Like I’m sure many of us have had, the plumbers informed me that the pipes are two different materials at the joint. That is why we keep having such issues because one of the materials expand while the other does not. They said every time we turn the water on and off, it is causing more damage on every other pipe in the building when that happens
DeleteI was told by a plumber that the pipes are galvanized steel. I've also read about the problems of galvanized steel, and they sound like what we're seeing.
DeleteI think they are galvanized, they may contain lead depending on how they were manufactured or if they were ever connected to lead pipes. http://americanvintagehome.com/advice-for-older-homes/need-swap-galvanized-pipes/
DeleteThey may want to take into account the many illegal renters..me being one of them.... who will be no longer paying the HOA anything if the building doesn't sell.
ReplyDeleteThis is a bit speculative since I do not know the age of installation for the operating water system in building. We all know we have plumbing issues tied to our water distribution system, as well as our roof drainage system. Most of the materials used for these purposes have a useful life of 40-75 years. Our building is 65 years old or so? Any of the materials used for this purpose which were left in place during the condo conversion are coming up on their expiration, if they have not already. Copper and galvanized steel are especially common, and fail closer to that 40 life span if not sooner. Assuming we are in a place where a significant portion of the water distribution system needs to be replaced, that is not only going to be costly, but also inconvenient with additional cost. It would probably take more than just a day or two to get all of the pipes installed. That means finding an alternate place to live at the unit owner's cost while a retrofit is done.
ReplyDeleteThe HOA fees will continue to rise to pay for the speculated water distribution and roof drain repairs. I also believe the roof needs to be replaced. Our HOA fees will rise to a point where they are a non-starter for prospective buyers (if they are not already that high). The increased fees aren't going to improve common spaces or add amenities, they would be going to cover defered O&M. If you are asking someone to pay $500-600/month in HOA fees for an 800-900 sq.ft. unit, you need to have a lot of extras to go with that. We don't have that, so to sell a unit, the owner is going to have to adjust their price. It sure seems like there is a spiral ahead of us for these mounting major repairs.
I know someone who’s family condo had to go through the same plumbing issues. They did not have as many units, and she said it took 3 months of water being shut off to the building every day. If you don’t want to move, you will be moving no matter what.
DeleteI can only imagine the roof being repaired will cause additional stress on 8th floor units due to noise. Living at sobu will not be a life worth living, and that doesn’t even include the cost part.
For the few remaining who do not want to move due to the "pain in the ass factor" to locate and move to another condo---have they been presented with specifics that could help eliminate that fear?
ReplyDeleteIE: Here are sales sheets on 5 units currently for sale in the immediate area for the same (hopefully less) than what your net to seller amount will be. XX agent would be happy to take 1/2 a day a go show you the units. A moving company would take 1 day and cost X. Your monthly payment at the new place would be X. Etc...etc...
All something that people should be able to do on their own but sometimes the process can freak people out. I am not an agent but I would think this would be time VERY well spent for any real estate agent to put together a "moving plan" for these last few holdouts who don't want to be "bothered" with the PIA of moving.
We have offered our services since the beginning. We have agents who know everything about the area and have already been helping other SOBU residents look for places in the area, and it has been a very easy process. If you or someone you know needs help with this please let me or Josh know. I assure you this is a much easier process.
DeleteWhile I understand that posting anonymously may provide the ability to speak more freely, I can't shake the feeling that we may be hurting ourselves by continuing to do so. We're to the point that a handful of holdouts are seriously jeopardizing the sale. If you know of specific people with specific issues, we need to know who they are so that we can approach them directly, and it would be helpful to know who you, the commenter, are so that we can better coordinate our actions. It will also help limit the generation of rumors and misunderstandings if we can speak directly about information, like "Bob Smith said X."
ReplyDeleteI completely agree with you, Aaron.
DeleteMy agent is working on a postcard to market to people in the building. I'll ask him about a relocation service.
ReplyDeleteI moved us across the country. It's not that hard when you can pay movers to pack and unpack your stuff for you.
Change is good for you, but it can be hard. Keeping yuppie brain engaged and solving problems helps you live a longer and happier life.
Can someone please take a tour around the building with the group of holdouts? Check the basement. Check the window casings. Check the water quality. (We always used a filter on the fridge.) Then, take a tour of 325 Paces. It's right down the street.
Some other food for thought. When the pipes need to be replaced for the building, the pipes that are inside an individual unit are financially responsible to the unit owner, NOT the HOA.
ReplyDeleteThose will be some very high added costs, as well as relocation for tenants or owners themselves. If they live out of state, someone is going to have to let crews in and out while the installation occurs. I know some of the holdouts do not want to move, but I hope they understand what a financial burden it will cost them to pay for the new plumbing in their units.
For those of you who personally know any of the holds, you might want to share that information with them as well.
Thanks
Exactly. We renovated our bathroom a few years ago and it was incredibly expensive and a difficult process. It was over $1800 for the plumbing alone. We contacted multiple reputable plumbers before we found someone who would even take the job due to the difficulty. Even the plumbing company that the building uses told us no.
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ReplyDelete**Can we have some kind of mediation for the holdouts?**
I would actually pay $ for that to happen. Does anyone have a connection with a mediator? Dr. Phil?
Clearly, these are emotional reasons they're holding on, not financial. This deal is the ONLY way to free the many of us who want to move on with our lives and with some money in our pockets, which doesn't even begin to offset the losses I've personally taken.
It seems cruel that so few can affect so many. Do they realize how badly we are all being affected? I can't imagine their lack of energy to find a new place and to move would be so great that they would condemn the rest of us to never being able to move/sell/retire/have children/get out of debt. Would they?
I've been an owner since 2001. Zillow still has my "value" 4k below what I paid. If I sold on my own, I would need to put in new floors, AC units and appliances at minimum not to mention disclosing every issue in the building and what fees lay ahead of them. I estimate on a good day to the right buyer I could get 80k. Not to mention losing the agent fees and closing costs, etc. This deal is (as many have said before) a no-brainer and frankly I am shocked that there are original owners/board members who haven't A. signed B. aren't banging on doors begging everyone else to sign too.
DeleteI would be willing to contribute to pay for a mediator to work with the holdouts. .
DeleteI too, like many here, would not be able to sell my unit at the break even point. The building is just not that desirable unless there is a sharp downturn in the market again, which would make owning very cheap because prospective buyers would buy foreclosures ( see the great recession for the last 10 years).
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