OFFICIAL - City Club Apartments (former Midwest Hotel)

[WoodDraw]

So the property is in receivership. Willow bridge dropped out, city club is gone.

The new management is yarco company.

I have a few more details, but it includes too much personal stuff to screenshot. If I know you and you you want more information, feel free to contact me.

Told they're actively looking at other people to take over the restaurant spaces and actively talking.

[Highlander]

So the property is in receivership. Willow bridge dropped out, city club is gone.

The new management is yarco company.

I have a few more details, but it includes too much personal stuff to screenshot. If I know you and you you want more information, feel free to contact me.

Told they're actively looking at other people to take over the restaurant spaces and actively talking.

So does this mean that the former owner of Reiger's won't be opening a diner there? I guess I had thought they were pretty close to ironing out a deal that would allow them to open. That would be too bad if it doesn't happen.

[DMNBT_RCJH]

So the property is in receivership. Willow bridge dropped out, city club is gone.

The new management is yarco company.

I have a few more details, but it includes too much personal stuff to screenshot. If I know you and you you want more information, feel free to contact me.

Told they're actively looking at other people to take over the restaurant spaces and actively talking.

Do you have docket no?

[CrossroadsUrbanApts]

Any more details that can be shared on this? Is it likely that the Crossroads property will be marketed for sale?

[CrossroadsUrbanApts]

City Club Crossroads has officially gone into receivership. Maybe KCRag members can pool funds and buy it.

https://www.bizjournals.com/kansascity/ ... -debt.html

[langosta]

City Club Crossroads has officially gone into receivership. Maybe KCRag members can pool funds and buy it.

https://www.bizjournals.com/kansascity/ ... -debt.html

Is this a market issue or a management issue?

Edit: valuation at closing is $20 million less than valuation today

[CrossroadsUrbanApts]

Financing issue, I think? It looks like the loan was bundled a few years ago with a bunch of others into a short-term note with a floating interest rate. Basically worst possible time to do that. I'm guessing when rates went from ~3% to ~8% and with the note coming due in a year, Holtzman decided to just walk from his portfolio.

[langosta]

Financing issue, I think? It looks like the loan was bundled a few years ago with a bunch of others into a short-term note with a floating interest rate. Basically worst possible time to do that. I'm guessing when rates went from ~3% to ~8% and with the note coming due in a year, Holtzman decided to just walk from his portfolio.

Yes, market revenue wise probably in a good place. Valuation is up 20% since since closing the now defaulted facilities.

[WoodDraw]

The place has a ton of deferred maintenance. You could tell awhile ago that they intended to just walk away and stop investing anything.

It’s a great location, but the build quality is incredibly cheap. A lot of the amenities don’t work anymore. I wouldn’t recommend anyone look at it until someone takes control of more than management.

The diner space is built, I’ve been in a few times. I just don’t know who the fuck wants it? The upstairs would be a fun rooftop.

Not sure HH will be up on anyone’s list to work with again.

Just a complete mess.

[WoodDraw]

Aside from this, it’s also just had issues. The police don’t patrol downtown so people just break into cars constantly.

From there to grand is sketchy as fuck at night. They need to get rid of that gas station. And the sideshows. You really have to walk home on main. Walnut someone got carjacked at knife point not long ago outside me.

Djx is a homeless magnet, and their spill isn’t great. Just people sleeping outside and occasionally inside djx. Underneath the outdoor balconies.

It’s too much because I love the area, but fucking hell

[FangKC]

Financial defaults lead to big Crossroads apartment complex entering receivership

The City Club Apartments in the Crossroads Arts District has been put under a limited receivership after its previous owner indicated that it would abandon the luxury complex amid reported defaults on different financial obligations.
...
But more recently, the Farmington Hills, Michigan, developer told the holder of an $80 million loan secured by the apartments that it no longer could operate them and would be "walking away." The holder, Shelter Growth CRE 2022-FL4 Issuer Ltd., petitioned for a limited receiver in February in Jackson County Circuit Court. Its attorneys underscored the urgency, due to the developer being "generally unable to pay its bills."
...
Since his Feb. 15 appointment, attorney Eric Johnson, a Spencer Fane LLP partner with significant experience in insolvency proceedings, enlisted Kansas City-based The Yarco Cos. as new property manager.
...
At its loan's closing, City Club Apartments was appraised at $97 million, according to credit rating reports for Shelter Growth's mortgage pool. The reports and receivership filings put the complex's stabilized value at $110.5 million.
...

https://www.bizjournals.com/kansascity ... 6&empos=p6

[WoodDraw]

I'm told they gave up on their plaza property as well, but I'm traveling

But in the crossroads the bank is in possession and it's being run with a manager.

They just walked away from the debt. It's in court.

There's some interesting information why willow bridge walked away, but at this point it's obvious.

I'll try to share more as things go by and I'm around

[FangKC]

CrossroadsUrbanApts, you should buy it.

[CrossroadsUrbanApts]

I love the location. Don't love what I've heard (mainly from WoodDraw) about the quality of construction.

But I'm interested in learning more.

[langosta]

I love the location. Don't love what I've heard (mainly from WoodDraw) about the quality of construction.

But I'm interested in learning more.

I think there is an interesting opportunity to buy this property + build a parking and transit lite development nearby. This property was over parked and over Amenitized based on my visits and tours

[CrossroadsUrbanApts]

I love the location. Don't love what I've heard (mainly from WoodDraw) about the quality of construction.

But I'm interested in learning more.

I think there is an interesting opportunity to buy this property + build a parking and transit lite development nearby. This property was over parked and over Amenitized based on my visits and tours

Does anyone know what Emprise Bank plans to do with the northern half of the lot across the street?

[langosta]

I love the location. Don't love what I've heard (mainly from WoodDraw) about the quality of construction.

But I'm interested in learning more.

I think there is an interesting opportunity to buy this property + build a parking and transit lite development nearby. This property was over parked and over Amenitized based on my visits and tours

Does anyone know what Emprise Bank plans to do with the northern half of the lot across the street?

Believe it’s partner or sell to developer to build mixed use multi

[WoodDraw]

I love the location. Don't love what I've heard (mainly from WoodDraw) about the quality of construction.

But I'm interested in learning more.

If you want to do a sneaky walkthrough just message me. There's a lot built out that looks amazing but never put to use. I'm sure the bank considers it a write off at this point and doesn't want it on their balance for long.

[FangKC]

There's certainly a better deal to be had buying from a bank after bankruptcy than buying from the developer on the open market. That is unless it's a situation like the UMKC dorms on Oak that had to be demolished because they were so badly constructed.

[herrfrank]

There's certainly a better deal to be had buying from a bank after bankruptcy than buying from the developer on the open market. That is unless it's a situation like the UMKC dorms on Oak that had to be demolished because they were so badly constructed.

I agree that waiting for receivership is a better idea.

But where did this meme that Twin Oaks were poorly constructed come from? They were built right after the war (1947-1949) and were demolished in 2007, so they stood for 60 years. My high school German teacher lived there, and I attended various events there in the 1980s. The property always presented in normal condition.

What I heard was that new management came in the 1990s and basically neglected all regular maintenance, leading to the problems with the elevators (water leakage through the shafts, among other problems). When the bill to replace the elevators was estimated, in the millions and a significant, five-figure cost per unit, the residents balked. This is from long-ago memory, so I may have some of the details wrong. But it was not the fault of the original construction.

Buildings require maintenance, even concrete and brick needs mortar work and restoration.