The two acres at 300 Decatur St. sold for $6.5 million earlier this month.
The last substantial piece of imprisoned local developer Billy Jefferson’s holdings was purchased by the same companies that purchased his River City Renaissance portfolios last year.
Boston-based Davis Cos. and local firm Spy Rock Real Estate Group closed this month on the foreclosed 95-unit Parachute Factory apartment complex in Manchester.
The companies partnered up to purchase the 2-acre property at 300 Decatur St. in a live bid in April. The purchase price was $6.5 million, according to city property records. The sale closed June 10. City records list the transfer date as June 16.
Records identify the buyer as DIV SR Parachute Factory Owner LLC, which lists Davis Cos.’ Boston headquarters as its principal office. The seller was Bethesda, Md.-based CWCapital, which handled the property through 300 Decatur Street Holdings LLC.
CWCapital Asset Management was the special servicer representing U.S. Bank, which foreclosed on the property and was the note holder when it was auctioned in April. The auction was held through online real estate site Ten-X, formerly known as Auction.com.
Spy Rock principal Andrew Basham said the firm had searched for another opportunity to work with Davis Cos. after partnering on the River City Renaissance portfolios last year.
“It came up for auction and we all looked at it and (asked whether) this makes sense for us to pursue as maybe a follow-on to the River City acquisition,” Basham said. “We did, and ultimately were successful at auction.
“It really is a neat building on the inside,” he said. “I think there’s a lot of potential there, and it’s in good proximity to a lot of the new investment that’s being made in Manchester and some of the commercial stuff that we hear is going to be happening over there.”
Basham said the companies are exploring development schemes that would balance out the 75,000-square-foot building, most of which was left undeveloped after it was renovated 10 years ago.
“It’s got 95 apartments in it right now. It’s a two- and three-story building,” he said. “When it was originally developed, most of the first floor – probably around 60,000 square feet of space – was just left undeveloped. So it’s a big, open warehouse that’s got electrical service, plumbing service. So it’s a bit of a blank slate.”
Basham said the acquisition includes an adjacent 1-acre lot with about 160 surface parking spaces – a hot commodity in Manchester. He said the building is in good shape, but needs cleaning and work to the roof after years of neglect.
Built in 1937, the building was renovated in 2006 using historic tax credits by Jefferson and fellow Richmond developer Justin French, who is also serving a lengthy federal prison sentence for tax credit schemes. In 2013, a Jefferson-controlled entity defaulted on a $15.2 million loan secured by the property, prompting last year’s round of foreclosure auctions.
U.S. Bank took control of the property through foreclosure last November, when no bidders followed its $6.6 million opening offer. As special servicer, CWCapital initiated the foreclosure.
U.S. Bank attempted to foreclose on the property three times in 2015. Wachovia was the original lender on the Parachute Factory loan, which had a $13.6 million balance at the time of foreclosure.
CompassRock Real Estate had been managing the property as part of a court order, but was discharged from responsibility in an April 12 filing in Richmond Circuit Court, prior to the auction.
The property most recently was assessed at $10.03 million, according to city records.
U.S. Bank had also pushed for the foreclosure of Jefferson’s River City Renaissance portfolios and the Tobacco Factory Lofts, another Jefferson-French collaboration.
CWCapital was also the special servicer for U.S. Bank on the River City Renaissance properties.
Davis Cos. acquired the River City Renaissance portfolios last year following months of legal wrangling in the wake of Jefferson’s sentencing. Davis Cos. and Spy Rock renovated and relisted seven of those properties last July.
Asked if the acquisitions pointed the companies toward the Parachute Factory building, Basham said the link back to Jefferson was a coincidence.
“I think it’s just irony,” Basham said. “I didn’t really know about this one when we bought River City. Or if I did, it was not at the top of our radar. It’s a pretty small project, really.”
Basham said the time is right to turn the firm’s focus across the river, noting Spy Rock’s other projects in Scott’s Addition, where it developed the Preserve at Scott’s Addition apartments and is developing three apartment buildings and commercial space on the site of the former Symbol Mattress Co. facility.
“We’ve made a big investment in Scott’s Addition, and we’ve been waiting for some of the commercial demand to materialize in Manchester,” Basham said. “I think it’s on the leading edge over there now, so I think it’s full of opportunity.”
The Parachute Factory purchase price is higher than neighboring properties sold recently. Up the street, the 104,000-square-foot Plant One building and 2-acre property at 400 Decatur St. was purchased in 2013 for $2.9 million. A block south, the 2-acre, 180,000-square-foot Miller Manufacturing Plant property was purchased in 2006 for $3.06 million. Fountainhead Properties has since developed the Miller plant into the 197-unit Miller Lofts.
The two acres at 300 Decatur St. sold for $6.5 million earlier this month.
The last substantial piece of imprisoned local developer Billy Jefferson’s holdings was purchased by the same companies that purchased his River City Renaissance portfolios last year.
Boston-based Davis Cos. and local firm Spy Rock Real Estate Group closed this month on the foreclosed 95-unit Parachute Factory apartment complex in Manchester.
The companies partnered up to purchase the 2-acre property at 300 Decatur St. in a live bid in April. The purchase price was $6.5 million, according to city property records. The sale closed June 10. City records list the transfer date as June 16.
Records identify the buyer as DIV SR Parachute Factory Owner LLC, which lists Davis Cos.’ Boston headquarters as its principal office. The seller was Bethesda, Md.-based CWCapital, which handled the property through 300 Decatur Street Holdings LLC.
CWCapital Asset Management was the special servicer representing U.S. Bank, which foreclosed on the property and was the note holder when it was auctioned in April. The auction was held through online real estate site Ten-X, formerly known as Auction.com.
Spy Rock principal Andrew Basham said the firm had searched for another opportunity to work with Davis Cos. after partnering on the River City Renaissance portfolios last year.
“It came up for auction and we all looked at it and (asked whether) this makes sense for us to pursue as maybe a follow-on to the River City acquisition,” Basham said. “We did, and ultimately were successful at auction.
“It really is a neat building on the inside,” he said. “I think there’s a lot of potential there, and it’s in good proximity to a lot of the new investment that’s being made in Manchester and some of the commercial stuff that we hear is going to be happening over there.”
Basham said the companies are exploring development schemes that would balance out the 75,000-square-foot building, most of which was left undeveloped after it was renovated 10 years ago.
“It’s got 95 apartments in it right now. It’s a two- and three-story building,” he said. “When it was originally developed, most of the first floor – probably around 60,000 square feet of space – was just left undeveloped. So it’s a big, open warehouse that’s got electrical service, plumbing service. So it’s a bit of a blank slate.”
Basham said the acquisition includes an adjacent 1-acre lot with about 160 surface parking spaces – a hot commodity in Manchester. He said the building is in good shape, but needs cleaning and work to the roof after years of neglect.
Built in 1937, the building was renovated in 2006 using historic tax credits by Jefferson and fellow Richmond developer Justin French, who is also serving a lengthy federal prison sentence for tax credit schemes. In 2013, a Jefferson-controlled entity defaulted on a $15.2 million loan secured by the property, prompting last year’s round of foreclosure auctions.
U.S. Bank took control of the property through foreclosure last November, when no bidders followed its $6.6 million opening offer. As special servicer, CWCapital initiated the foreclosure.
U.S. Bank attempted to foreclose on the property three times in 2015. Wachovia was the original lender on the Parachute Factory loan, which had a $13.6 million balance at the time of foreclosure.
CompassRock Real Estate had been managing the property as part of a court order, but was discharged from responsibility in an April 12 filing in Richmond Circuit Court, prior to the auction.
The property most recently was assessed at $10.03 million, according to city records.
U.S. Bank had also pushed for the foreclosure of Jefferson’s River City Renaissance portfolios and the Tobacco Factory Lofts, another Jefferson-French collaboration.
CWCapital was also the special servicer for U.S. Bank on the River City Renaissance properties.
Davis Cos. acquired the River City Renaissance portfolios last year following months of legal wrangling in the wake of Jefferson’s sentencing. Davis Cos. and Spy Rock renovated and relisted seven of those properties last July.
Asked if the acquisitions pointed the companies toward the Parachute Factory building, Basham said the link back to Jefferson was a coincidence.
“I think it’s just irony,” Basham said. “I didn’t really know about this one when we bought River City. Or if I did, it was not at the top of our radar. It’s a pretty small project, really.”
Basham said the time is right to turn the firm’s focus across the river, noting Spy Rock’s other projects in Scott’s Addition, where it developed the Preserve at Scott’s Addition apartments and is developing three apartment buildings and commercial space on the site of the former Symbol Mattress Co. facility.
“We’ve made a big investment in Scott’s Addition, and we’ve been waiting for some of the commercial demand to materialize in Manchester,” Basham said. “I think it’s on the leading edge over there now, so I think it’s full of opportunity.”
The Parachute Factory purchase price is higher than neighboring properties sold recently. Up the street, the 104,000-square-foot Plant One building and 2-acre property at 400 Decatur St. was purchased in 2013 for $2.9 million. A block south, the 2-acre, 180,000-square-foot Miller Manufacturing Plant property was purchased in 2006 for $3.06 million. Fountainhead Properties has since developed the Miller plant into the 197-unit Miller Lofts.
I’m pleased to see this building in good hands finally. Spyrock has proven to be a excellent developer and manager. The Chute has been a neighborhood thorn among roses for a decade of mismanagement. Manchester continues to prosper and some big,big things are on the horizon. Currently a major voter registration drive is being conducted by business groups active their. Sign up and vote!