Update on Sterling Building

It has been a while since I have posted, but I wanted to publish an update on the status of this project. In many ways, the status is reflective of the general economy and status of many urban development projects in Trenton and other towns, but my team and I have been working to come up with some options for the project and a way to keep it moving forward.

After our team completed a set of fully engineered plans this past Spring, we sent it out to bid. We received two quotes from general contractors and both were between $700,000 and $800,000, not including architecture, engineering, acquisition, environmental and holding costs. Since I believe that in this market, I could sell the 3 proposed units for about $600,000 less selling costs after renovation, the first vision for the project is not feasible. Since then, my team and I have worked on some cost saving versions and we have also looked at a new approach to the project. The approach that makes the most sense at this time is to renovate the first floor retail space such that it meets the current market for retail space in the immediate area and leave the renovation of the upstairs space for a later date. We are receiving some new quotes that make this approach look feasible and I have had a number of showings to potential commercial tenants. I am quite confident that we will have a signed build-to-suit lease and signed construction contract in the near future.

Other updates on the project:
1) We hired Jeffrey Hall from Fox Rothschild to complete a tax appeal. Jeff did an excellent job working with the smart, tough and fair group of people at the City of Trenton Tax Assessor's office, and we received a judgment from the Mercer County Tax Board lowering the assessment to $63,800, which was a 37% decrease. Note that the equalized rate in Trenton is currently 66.52% so the market value per the settlement was $101,924 (or approximately $18 per SF) as of 2009.
2) I have listed the property for sale with Segal Commercial Real Estate for $129k. This price includes the plans and selling costs as well as the environmental documentation on the property from Brinkerhoff Environmental Services. Although my primary goal is to renovate and lease the property, I am open to selling it to someone that has a vision and an implementation plan for the development of the property. Sometimes it makes more sense for an owner-user to take on a project like this. (Note: I am agent with Segal Commercial Real Estate and I also own an interest in the property).

More updates to follow!