IBJNews

Long-struggling condo development going to auction

Back to TopCommentsE-mailPrintBookmark and Share

A block of eight downtown condominiums is going to auction Feb. 7 following almost five years in which they failed to attract buyers through traditional means.

The mostly two-bedroom units represent the bulk of the ill-fated Chatham Kynett Court project at 716 N. East St. in the Chatham Arch neighborhood. The condos, spread over three buildings, were developed by locally based SC Devcon and came to market in 2008 shortly before the recession ravaged the residential real estate market.

Key Auctioneers is selling the units, which range in size from 1,400 to 2,200 square feet, for BMO Harris Bank. There is no minimum bid, said Jeff Doner, a vice president of the auction company. The high bidder is required to put up $10,000 in earnest money and close on the purchase within 30 days of the auction.

The units are being sold in "as is" condition. Doner said one of the units is finished and three are drywalled and have mechanicals but need finishing. Of those four units, three are in a four-unit building that faces East Street and the other is in a three-unit building directly behind it. Both of those structures were built when the condos were developed. The other four units that are part of the auction package are yet to be built in the Kynett building, a historic brick structure that fronts Cleveland Street, an alley behind and parallel to East Street.

Doner said nothing would prevent a buyer from taking advantage of the hot downtown rental market and leasing the units rather than selling them.

Chatham Kynett Court included 11 units when it was built. Three of those sold, but potential buyers turned up their noses at the rest of them, which ranged in price from $249,000 to almost $400,000.

Kurt Flock, whose company specializes in selling downtown residential property, had the listing for nine of the condos when SC Devcon brought them to market.

Flock felt they were overpriced to begin with. Anyone trying to sell the Chatham Kynett Court units now will have to figure out how to finish them without breaking the bank. They will have to remain competitive with resale units, which are commanding about 20 percent less than they were before the housing bubble burst, Flock said.

"There's not enough profit potential there without buying the remaining units at a stupendous discount," he said.

Flock noted that banks are especially stingy about loaning money for the purchase of condominiums. Common areas and the land underneath a condo building are typically owned by an association supported by building residents.  

Flock said banks usually look more favorably upon planned unit developments, in which the owners of individual units also own the land under their unit. Whoever buys the Chatham Kynett Court units could, theoretically, convert the project to a planned unit development.

"It's going to take some real estate gymnastics" to rescue the project and make a profit, Flock said.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Hiking blocks to an office after fighting traffic is not logical. Having office buildings around the loop, 465 and in cities in surrounding counties is logical. In other words, counties around Indianapolis need office buildings like Keystone, Meridian, Michigan Road/College Park and then no need to go downtown. Financial, legal, professional businesses don't need the downtown when Carmel, Fishers, North Indy are building their own central office buildings close to the professionals. The more Hamilton, Boone county attract professionals, the less downtown is relevant. Highrises have no meaning if they don't have adequate parking for professionals and clients. Great for show, but not exactly downtown Chicago, no lakefront, no river to speak of, and no view from highrises of lake Michigan and the magnificent mile. Indianapolis has no view.

  2. "The car count, THE SERIES, THE RACING, THE RATINGS, THE ATTENDANCE< AND THE MANAGEMENT, EVERY season is sub-par." ______________ You're welcome!

  3. that it actually looked a lot like Sato v Franchitti @Houston. And judging from Dario's marble mouthed presentation providing "color", I'd say that he still suffers from his Dallara inflicted head injury._______Considering that the Formula E cars weren't going that quickly at that exact moment, that was impressive air time. But I guess we shouldn't be surprised, as Dallara is the only car builder that needs an FAA certification for their cars. But flying Dallaras aren't new. Just ask Dan Wheldon.

  4. Does anyone know how and where I can get involved and included?

  5. While the data supporting the success of educating our preschoolers is significant, the method of reaching this age group should be multi-faceted. Getting business involved in support of early childhood education is needed. But the ways for businesses to be involved are not just giving money to programs and services. Corporations and businesses educating their own workforce in the importance of sending a child to kindergarten prepared to learn is an alternative way that needs to be addressed. Helping parents prepare their children for school and be involved is a proven method for success. However, many parents are not sure how to help their children. The public is often led to think that preschool education happens only in schools, daycare, or learning centers but parents and other family members along with pediatricians, librarians, museums, etc. are valuable resources in educating our youngsters. When parents are informed through work lunch hour workshops in educating a young child, website exposure to exceptional teaching ideas that illustrate how to encourage learning for fun, media input, and directed community focus on early childhood that is when a difference will be seen. As a society we all need to look outside the normal paths of educating and reaching preschoolers. It is when methods of involving the most important adult in a child's life - a parent, that real success in educating our future workers will occur. The website www.ifnotyouwho.org is free and illustrates activities that are research-based, easy to follow and fun! Businesses should be encouraging their workers to tackle this issue and this website makes it easy for parents to be involved. The focus of preschool education should be to inspire all the adults in a preschooler's life to be aware of what they can do to prepare a child for their future life. Fortunately we now know best practices to prepare a child for a successful start to school. Is the business community ready to be involved in educating preschoolers when it becomes more than a donation but a challenge to their own workers?

ADVERTISEMENT