David Dagenhart says he’s close to a deal on the building at 1229 Hull St. (Photo by David Larter)
A deal gone awry has left the developer of a Manchester rehab project searching for a Plan B – and maybe a Plan C.
David Dagenhart, who owns Dagenhart Sprinkler Company, thought he’d team up with pal and fellow developer Larry Cluff on a 10-unit historic tax credit rehab at 1229 Hull St.
Dagenhart was to buy the property, file all the paperwork with the state and the city for tax credits and abatements, and then sell the property to Cluff at a premium.
Cluff would develop the property into Manchester’s latest converted apartment building with two ground floor commercial spaces.
Dagenhart even hired Architecture Design Office to do detailed drawings of exactly what the renovated building would look like.
But the deal fell through.
“He had a little trouble getting the financing together,” Dagenhart said of Cluff’s side of the deal.
Dagenhart has been looking for a new buyer, but he’s not ready to give the property away, given the legwork and paperwork he’s put into it. He paid $125,000 for the 11,000-square-foot building last January, and he’s asking $315,000.
“I’ve had a ton of interest in it and a lot of offers, but everybody’s trying to get a deal,” he said. “I know how much work has already gone into it, so if I can’t find the right buyer, I’m just going to develop it myself.”
The developer said that he is close to a deal and that the property is going under contract, but he would not name the potential buyer. Matt Smith of Re/Max Commercial represents the property.
Dagenhart estimates that it would cost him about $600,000 for the renovation, although it might cost another developer a little more because of he can find savings in the fire protection components. After all, he runs a sprinkler company.
Jeremy Connell, who runs Pareto LLC and developed the nearby Manchester Pie Factory, said he looked at the building but wasn’t in love with the neighborhood.
“You’re about three blocks too deep on Hull Street,” Connell said. “Everything around there is a little rough. But it’s a great building and would be a great project. Certainly it would be a bold project.”
David Dagenhart says he’s close to a deal on the building at 1229 Hull St. (Photo by David Larter)
A deal gone awry has left the developer of a Manchester rehab project searching for a Plan B – and maybe a Plan C.
David Dagenhart, who owns Dagenhart Sprinkler Company, thought he’d team up with pal and fellow developer Larry Cluff on a 10-unit historic tax credit rehab at 1229 Hull St.
Dagenhart was to buy the property, file all the paperwork with the state and the city for tax credits and abatements, and then sell the property to Cluff at a premium.
Cluff would develop the property into Manchester’s latest converted apartment building with two ground floor commercial spaces.
Dagenhart even hired Architecture Design Office to do detailed drawings of exactly what the renovated building would look like.
But the deal fell through.
“He had a little trouble getting the financing together,” Dagenhart said of Cluff’s side of the deal.
Dagenhart has been looking for a new buyer, but he’s not ready to give the property away, given the legwork and paperwork he’s put into it. He paid $125,000 for the 11,000-square-foot building last January, and he’s asking $315,000.
“I’ve had a ton of interest in it and a lot of offers, but everybody’s trying to get a deal,” he said. “I know how much work has already gone into it, so if I can’t find the right buyer, I’m just going to develop it myself.”
The developer said that he is close to a deal and that the property is going under contract, but he would not name the potential buyer. Matt Smith of Re/Max Commercial represents the property.
Dagenhart estimates that it would cost him about $600,000 for the renovation, although it might cost another developer a little more because of he can find savings in the fire protection components. After all, he runs a sprinkler company.
Jeremy Connell, who runs Pareto LLC and developed the nearby Manchester Pie Factory, said he looked at the building but wasn’t in love with the neighborhood.
“You’re about three blocks too deep on Hull Street,” Connell said. “Everything around there is a little rough. But it’s a great building and would be a great project. Certainly it would be a bold project.”
i walk by this building at least once a week and i have seen no movement inside – still full of junk to the ceiling and the fenced in back area hasn’t been touched in decades. his asking price – approximately 200,000.00 more than he bought it for just a year ago?! come on! how much ‘legwork and paperwork’ can you do on a building when physically it hasn’t been touched – and if so, where were his permits – definitely not posted on the window. yes, it is a nice building but owner is dreaming! but best of luck… Read more »
I really don’t understand where the flip premium here is. Bought for $125k. The $200k of “legwork and paperwork???”
I think he’d better start developing it himself.
About a year ago, I actually considered developing that property. However, I could not get the numbers to work, and the tax credit issues mean that there would be tremendous overhead – not to mention the giant wild card of the renovation. Double the 600k estimate in the article to set a reasonable upper bound. Hull Street in Manchester has great potential. Somebody has to be the first mover to get the ball rolling. The hope is that the one who makes that play, is the one who is the winner in the long run. I pray that the whole… Read more »
As a VCU student I jog past this area daily and it was surprising to see the amount of VCU students and graduates in this neighborhood.