POSTED ON MARCH 12, 2008:
Real estate developer says city ordinances made it impossible to finance upscale apartments in Brookside
The much-hyped upscale apartment complex announced to be in the works for Brookside last month is no longer happening.
"We're terminating the contract," said a representative for Houston real estate developer, Bomasada Group last week.
The plan was to build an upscale, $40 million, five-story, 240-unit apartment complex on Brookside near 41st St. and Peoria Ave. on the site currently occupied by the less-swanky Brookside Annex and Brookside Courtyard apartments.
While there were a few naysayers, the plan was received with mostly positive responses by neighborhood residents and business leaders in anticipation of the economic benefits it would bring to the area.
But, days after the announcement, UTW was told that it had been placed on the "backburner" due to "hiccups" from the city government.
Well, those "hiccups" proved to be fatal, the proverbial "backburner" has gone cold, and the deal is off.
John Gilbert, senior vice president of Bomasada, said the construction costs would be too prohibitive due to some peculiarities in the city's requirements.
He said city ordinances would have required them to construct the complex in segments, and to install a commercial fire sprinkler system instead of a residential system.
Gilbert said the Bomasada Group tried to renegotiate the purchase price of the property to offset the higher-than-expected construction costs, but the seller was unwilling to budge.
"In regard to the contract termination, I was asked to reduce the contract price by the amount of their excess construction costs due to city requirements, which . . . were in excess of what is expected within the international building code," said Dan Perry of Perry Properties, who owns the two apartment complexes currently on the lot.
"Apparently, there is a procedure in place to resolve these types of differences, which they were not willing to pursue at this time," he added.
Concerning his unwillingness to renegotiate the price, Perry said, "The price had already been agreed upon, and I did not see any need to sell the property for less than fair market value. Midtown property value is increasing, especially in the Brookside and Cherry Street areas."
Perry said he doesn't currently have any other buyers lined up, and he isn't actively seeking any.
"I have never listed the property for sale, nor do I intend to . . . at this time. Should another opportunity present itself, I will make the best decision I can make at that time," he said.
"You will not find another parcel of land like this in Midtown Tulsa. If I had the money, I would redevelop the property myself. I will do the best I can with the property until presented a better opportunity. The reason I bought the property 10 years ago was . . . its location. Buildings and improvements age and depreciate over time, but well-located land generally only appreciates in value," Perry continued.
Gilbert said the Bomasada Group doesn't currently have any other projects in mind for Tulsa, but said, "We're still snooping around" for a place to develop within the city.
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