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Re: OFFICIAL - City Club Apartments (former Midwest Hotel)
Posted: Tue Mar 05, 2024 4:27 pm
by 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.
Re: OFFICIAL - City Club Apartments (former Midwest Hotel)
Posted: Wed Mar 06, 2024 1:04 pm
by Highlander
WoodDraw wrote: ↑Tue Mar 05, 2024 4:27 pm
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.
Re: OFFICIAL - City Club Apartments (former Midwest Hotel)
Posted: Wed Mar 06, 2024 3:53 pm
by DMNBT_RCJH
WoodDraw wrote: ↑Tue Mar 05, 2024 4:27 pm
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?
Re: OFFICIAL - City Club Apartments (former Midwest Hotel)
Posted: Wed Mar 20, 2024 10:22 am
by CrossroadsUrbanApts
Any more details that can be shared on this? Is it likely that the Crossroads property will be marketed for sale?
Re: OFFICIAL - City Club Apartments (former Midwest Hotel)
Posted: Wed May 15, 2024 4:36 pm
by 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
Re: OFFICIAL - City Club Apartments (former Midwest Hotel)
Posted: Wed May 15, 2024 4:51 pm
by langosta
Is this a market issue or a management issue?
Edit: valuation at closing is $20 million less than valuation today
Re: OFFICIAL - City Club Apartments (former Midwest Hotel)
Posted: Wed May 15, 2024 4:58 pm
by 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.
Re: OFFICIAL - City Club Apartments (former Midwest Hotel)
Posted: Wed May 15, 2024 5:38 pm
by langosta
CrossroadsUrbanApts wrote: ↑Wed May 15, 2024 4:58 pm
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.
Re: OFFICIAL - City Club Apartments (former Midwest Hotel)
Posted: Thu May 16, 2024 1:14 am
by 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.
Re: OFFICIAL - City Club Apartments (former Midwest Hotel)
Posted: Thu May 16, 2024 1:37 am
by 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
Re: OFFICIAL - City Club Apartments (former Midwest Hotel)
Posted: Fri May 17, 2024 1:20 am
by 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."
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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.
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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