1st Street Lofts Rant/recap

[carltonplace]

least initially they did set it in motion to continue to use these funds as a short-term, no-interest revolving loan program when re-paid which I personally think is an excellent approach.

This is the part that really bugs me, if these were repaid they could be issued to another project and keep the ball rolling. He is keeping 1.3M out of the residential development equation and that is not a small impact.

[Vision 2025]

This is the part that really bugs me, if these were repaid they could be issued to another project and keep the ball rolling. He is keeping 1.3M out of the residential development equation and that is not a small impact.

No to be defending any project but I don't believe any of the loans from this go-around been repaid at this point.

[rdj]

I thought ARG re-paid their loans and took out another?  Or, was that on the previous round of downtown housing loans?

[Vision 2025]

I thought ARG re-paid their loans and took out another?  Or, was that on the previous round of downtown housing loans?

If you're talking about the Tribune Lofts? that was a previous package.

[cannon_fodder]

Great news... According to the Tulsa World Sager will be working on the First Street Lofts soon...
http://www.tulsaworld.com/business/realestate/downtown-living-options-continue-to-multiply-but-may-not-be/article_f3397515-63b1-5c4b-ad4d-ae612fd7e565.html

Well, it has to he true or they would print it (again and again).

[sgrizzle]

Great news... According to the Tulsa World Sager will be working on the First Street Lofts soon...
http://www.tulsaworld.com/business/realestate/downtown-living-options-continue-to-multiply-but-may-not-be/article_f3397515-63b1-5c4b-ad4d-ae612fd7e565.html

Well, it has to he true or they would print it (again and again).

Time to update the recap.

[swake]

Time to update the recap.

The Frontier needs to do a story on Sager and his finances.  

[sgrizzle]

The Frontier needs to do a story on Sager and his finances.  

Frontier is made up of writers and editor who were on staff when the World wrote the other stories.

They won't be writing a scathing Camille's story either.

[PonderInc]

Great news... According to the Tulsa World Sager will be working on the First Street Lofts soon...
http://www.tulsaworld.com/business/realestate/downtown-living-options-continue-to-multiply-but-may-not-be/article_f3397515-63b1-5c4b-ad4d-ae612fd7e565.html

Well, it has to he true or they would print it (again and again).

Yeah, what a joke.

So it's been 10 years, and I believe it was supposed to be a ten year, $1.3 million interest free loan (thanks taxpayers!) to be repaid at the end of the period.

Is the TDA involved in this in some way?  What's the auditing process?  When he defaults on the loan, who gets to foreclose on his properties?  Presumably it was a loan and not a $1.3 million gift, right?  So, who's representing the taxpayer interests on this?

[Townsend]

Great news... According to the Tulsa World Sager will be working on the First Street Lofts soon...
http://www.tulsaworld.com/business/realestate/downtown-living-options-continue-to-multiply-but-may-not-be/article_f3397515-63b1-5c4b-ad4d-ae612fd7e565.html

Well, it has to he true or they would print it (again and again).

Longtime downtown developer Michael Sager planned a downtown living development of his own years ago, but after some initial infrastructure work at 310 E. First St., the project stalled.

Now Sager said he's ready to finish First Street Lofts, which will have a new design for its 23 units that will range from 700 square feet to 2,000 square feet. The updated design is now more luxurious and influenced by his travels.

"They started off as being somewhat bohemian, and now it's very Seattle with an industrial texture," he said.

Sager said work on First Street Lofts should begin soon.

I walk by 10 times a week.  I'll let you know when it all begins.

[LandArchPoke]

"We've already got 180 people on our waiting list," she said. "It's a snowball effect. The more we build, the more demand there is." - Beverly Raines | Harrington Lofts

Let that sink in for a moment.

We are in the best market for multifamily construction and financing in the HISTORY of real estate.

We are in the biggest demand period for downtown Tulsa real estate since suburbanization started.

Yet somehow he can't find financing to finish this project? All while he is spending millions to buy other downtown and pearl district properties.

He was quoted in the Journal Record a few weeks ago about this project that said he is still trying to find financing and hopes to have it in 6 months to begin construction but would likely be later than that.  I'm not kidding. I'll see if I can find that later this evening. This guy is a joke, and somehow gets credit for the revitalization of downtown so many times  He's a hamper to downtown development by blocking $1.5 million in housing funds from going back to someone else. This project is not difficult to find financing for, and the financing markets (especially for multifamily) have been great since 2012.

[Vision 2025]

Yeah, what a joke.

So it's been 10 years, and I believe it was supposed to be a ten year, $1.3 million interest free loan (thanks taxpayers!) to be repaid at the end of the period.

Is the TDA involved in this in some way?  What's the auditing process?  When he defaults on the loan, who gets to foreclose on his properties?  Presumably it was a loan and not a $1.3 million gift, right?  So, who's representing the taxpayer interests on this?

Yes, TDA is the administrator of this and the other loans made with Vision2025 proceeds.

[DTowner]

Great news... According to the Tulsa World Sager will be working on the First Street Lofts soon...
http://www.tulsaworld.com/business/realestate/downtown-living-options-continue-to-multiply-but-may-not-be/article_f3397515-63b1-5c4b-ad4d-ae612fd7e565.html

Well, it has to he true or they would print it (again and again).

Sager's PR team deserves a raise.  Oh, wait, the Tulsa World is his PR team.....

[sgrizzle]

"We've already got 180 people on our waiting list," she said. "It's a snowball effect. The more we build, the more demand there is." - Beverly Raines | Harrington Lofts

Let that sink in for a moment.

We are in the best market for multifamily construction and financing in the HISTORY of real estate.

We are in the biggest demand period for downtown Tulsa real estate since suburbanization started.

Yet somehow he can't find financing to finish this project? All while he is spending millions to buy other downtown and pearl district properties.

Correction, he can't find MORE financing for this project. Not a single tenant and he already owes millions.

[LandArchPoke]

Correction, he can't find MORE financing for this project. Not a single tenant and he already owes millions.

There's no reason he can't find more financing either.

He's leasing ~6,500 sq. ft. on the first floor for most likely $22.00 NNN (that area's market rate).

He has a $1.3 million interest free loan - 10 year term (or is it longer?) = $130,000 per year

He is having $143,000 per year of income from those retail spaces.

He probably took a $200,000-300,000 "developer fee" and "project manager fee" too. So essentially ripped off tax payers and pocketed a few hundred thousand dollars. Then nets $13,000 a year from the retail spaces and then a full $143,000 when the loan is paid off. Then get's credit for being the Downtown savior while he's ripping tax payers off!!

What a F-ing joke.  

He could easily go to a bank and get financing to complete the multifamily buildout.

Since this was tax payer money and TDA administered the loan is there anyway to file to have the loan information made public? I assume there was some sort of business plan he had to submit. Why were these loans not administered like a private construction loan where they could only draw from the funds when materials and supplies were being bought? If there was, there should be some sort of record of what he paid himself to "manage" the project. Where's the follow through (checks/balances) for this money?