blogdowntown 89.3 KPCC | Southern California Public Radio

Stay Connected

@blogdowntown on Twitter
blogdowntown on Facebook


 

Still Navigating Bankruptcy, Roosevelt Lofts Now Leasing

By Eric Richardson
Published: Thursday, October 08, 2009, at 05:32PM
Roosevelt Sales Center Eric Richardson [Flickr]

The Roosevelt Lofts may still have signs for its Sales Center, but no units are being sold inside the building. Leasing is underway, though the owners hope to keep the structure condo.

Life moves slowly for a building in bankruptcy. When the Roosevelt Lofts filed for Chapter 11 reorganization on April 13, developer Milbank Real Estate Services put out a statement saying that sales would continue "without interruption."

Six months later, Roosevelt Lofts, LLC., is still seeking a court order allowing those sales, a move opposed (for a variety of reasons) by construction lender Bank of America. In the meantime, Judge Geraldine Mund has ruled that the Roosevelt can start leasing residential units in the building.

The order has given a spark of new life to the corner of 7th and Flower. "We've had a nice little surge in traffic," said Roosevelt Director of Leasing Randelle Green. 25 units in the building are now occupied on the 3rd through 8th floors, the ones covered by the structure's Temporary Certificate of Occupancy.

Green said that most of those new tenants were already interested in the building when it was for sale. The Roosevelt plans to launch a marketing campaign, but has to stay within the fiscal constraints of its bankruptcy plan.

Rents filed with the court range from $1,939 for a 732 square foot unit on the 3rd floor to $3,595 for 1,498 square feet with two bedrooms and 1.5 baths. Judge Mund's order allows the Roosevelt to discount up to 20% from those prices, but anything more than that requires the bank's approval.

Units on the higher floors remain unfinished, and a financial plan filed with the court by Roosevelt Lofts, LLC., shows funds from leases and eventual sales being used to fund their completion.

To get to that point, the company proposes to proceed with both leasing and sales concurrently. Traditionally, that's been a dangerous road for residential buildings, often leading to conflict between owners and renters.

Though he downplayed the potential for trouble, Green said that it was a consideration. "It's something ownership is concerned with," said Green. He emphasized that the goal remains to keep the building condo. "It is certainly not the goal of the ownership group to be in the apartment-house rental business."

While the Roosevelt's website has not been updated to reflect leasing operations, those interesting in renting in the building can contact the sales office for more information.

SHARE:

Tweet This Story || Share on Facebook

Related Stories: