Still Navigating Bankruptcy, Roosevelt Lofts Now Leasing
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.
DOWNTOWN LOS ANGELES — 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.
Ankur on October 08, 2009, at 07:23PM – #1
2k for the smallest units wont move em in this market.
They will rent with parking, for 1400 tops. Sad to see such a awesome building be so dormant.
Bert Green on October 09, 2009, at 01:12AM – #2
Agreed. Those rental prices are insane. 732 sq feet should be $1,100 at the very most.
MarkB on October 09, 2009, at 10:14AM – #3
The leases are for 6-months max, and as soon as the building can begin selling again the leases won't be renewed. So, potential renters, beware: don't make any plans to stay awhile.
Ernesto on October 09, 2009, at 04:41PM – #4
These are the shadiest people ever! I would never want them to be my landlord! Look at how hard it has been for people to get their deposits back after over two years!
Kevin Lynn on October 11, 2009, at 08:31AM – #5
Granted, this is an amazing building and a lot of cost per sq. ft. has gone into the condos. But market rents seem to be around a $1.70 per sq. ft. for residential these days. This downturn is going to cause a lot of price points to reset. BofA will need to take a bath on this one because the rents will never support the note.
Then someone will come in, buy it for what it can be leased for and 10 years from now sell it at a profit. Like the old adage goes, there is no such thing as bad real estate, just bad timing.
Abram Massoud on November 19, 2009, at 04:31PM – #6
Who is the aire apparent? Bank of America?
Anytime a property sits this length of time without resolution, one can assume that the Bank will prevail. "Deeper pockets / better Attorney's".
Lori Taghdiri on November 19, 2009, at 04:40PM – #7
Last time I walked by this place, the stinch of human waste was horrendous. Beware renters and (future owners)!
I wonder if the Bankruptcy Judge is aware of the parking profits?
Kenny Dahl on November 19, 2009, at 04:55PM – #8
Wonder if the Bank hired a private investigator? I wonder if the Court is investigating?