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Deadline approaches for Richelieu offers

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The son of philanthropists whose name graces the music school at Indiana University is selling a 100-year-old apartment building off Massachusetts Avenue that he owns with another investor.

John Jacobs and a Cleveland-based partner have put a Friday deadline on offers for the 62-unit Richelieu apartments, a two-building property at the intersection of North and East streets and Mass Ave.

The property containing mostly one- and two-bedroom units has been owned by Jacobs since 2003. He put it on the market in late 2007 but pulled it the next year when the real estate market started to unravel, said Amy Burmeister, a broker with CB Richard Ellis who has the listing.

It came back on the market in March, and the price has since been reduced from $4.95 million to $4.65 million. Burmeister said the Richelieu is 95 percent occupied and renters pay between $600 and $1,400 a month.

Burmeister noted that the asking price, which amounts to $75,000 a unit, is less than the $89,000 a unit paid in January 2009 for The Argyle, a 36-unit apartment building just across East Street. But The Argyle, unlike the Richelieu, has retail space on the first floor.

Burmeister is hopeful her client will have several offers to choose from after the deadline passes. She said well-located properties with stable ownership are drawing more interest from potential buyers than they were a year ago.

The Richelieu isn’t in financial distress, but another local property owned by Jacobs, Meridian-Shoreland Tower apartments at 3710 N. Meridian St., is in receivership. Flaherty & Collins principal Jerry Collins was appointed receiver for the 195-unit building in March, at which time his company took over management of the property.

The property had been managed by locally based Buckingham Properties, which manages the Richelieu and Jacobs’ other properties here: Overlook at Valley Ridge, on Southport Road, and Summerwood on Towne Line on the north side.

Jacobs’ parents, David and Barbara, were IU alums. His father, a real estate developer and former owner of the Cleveland Indians baseball team, died in 1992. Barbara Jacobs died in 2005, not long after donating $40.6 million to the Indiana University School of Music, which now bares the family name. Cleveland’s baseball stadium also was once known as Jacobs Field.

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  1. Aaron is my fav!

  2. Let's see... $25M construction cost, they get $7.5M back from federal taxpayers, they're exempt from business property tax and use tax so that's about $2.5M PER YEAR they don't have to pay, permitting fees are cut in half for such projects, IPL will give them $4K under an incentive program, and under IPL's VFIT they'll be selling the power to IPL at 20 cents / kwh, nearly triple what a gas plant gets, about $6M / year for the 150-acre combined farms, and all of which is passed on to IPL customers. No jobs will be created either other than an handful of installers for a few weeks. Now here's the fun part...the panels (from CHINA) only cost about $5M on Alibaba, so where's the rest of the $25M going? Are they marking up the price to drive up the federal rebate? Indy Airport Solar Partners II LLC is owned by local firms Johnson-Melloh Solutions and Telemon Corp. They'll gross $6M / year in triple-rate power revenue, get another $12M next year from taxpayers for this new farm, on top of the $12M they got from taxpayers this year for the first farm, and have only laid out about $10-12M in materials plus installation labor for both farms combined, and $500K / year in annual land lease for both farms (est.). Over 15 years, that's over $70M net profit on a $12M investment, all from our wallets. What a boondoggle. It's time to wise up and give Thorium Energy your serious consideration. See http://energyfromthorium.com to learn more.

  3. Markus, I don't think a $2 Billion dollar surplus qualifies as saying we are out of money. Privatization does work. The government should only do what private industry can't or won't. What is proven is that any time the government tries to do something it costs more, comes in late and usually is lower quality.

  4. Some of the licenses that were added during Daniels' administration, such as requiring waiter/waitresses to be licensed to serve alcohol, are simply a way to generate revenue. At $35/server every 3 years, the state is generating millions of dollars on the backs of people who really need/want to work.

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