MattnSTL wrote:I guess this kind of crushes the good news from a couple months ago. I wonder if someone else will be willing to pick this building up and do something?
Perhaps it only brings to light issues outlined from a couple months ago.
rchalk wrote:Long story short is that one of the major players in the project is in a financial mess that needed to be cleaned up. The project will get done at some point (even though it might take foreclosure) and the condo's will most likely end up in the 2's rather than the 4's.
MattnSTL wrote:I wonder if someone else will be willing to pick this building up and do something?
He better dump it soon to somebody, even if he's forced to take a loss on it. After all, he's going to need a bunch of money to pay off for some prison security, or else he'll end up being traded for cigarettes to a large dude with tattoos who starts calling him Alice. Think positive.
Please consider with your sophomoric responses that this is an individual with a family, who possibly got in over his head in trying to develop or capitalize on the activities downtown. His investments are not only in the Ford, but also in other developments, restaurants and even retail. This is a very sad occurence. Let us not forget, "innocent until proven guilty." Without folks making the attempt to do something with what once was much more we would all be looking at a bunch of cool empty buildings.
Better a few buildings stay empty than someone get in over their heads, defraud banks, launder money and endanger the public's health. Of course this is all alleged, yet likely true. I'm sure it started out small with him, and then the pressure grew; that's the way it is with everything. Maybe he should have considered his family and those depending on him before he got in too deep. If he did the right thing, he wouldn't be in as much sh*t as he is now. Some people just have to learn the hard way and unfortunately their poor decisions can negatively affect many others, as saltearth seems to allude to. Ethics are important, people.
I'm sure this ain't popular, but it's something that we could all fall victim too, think about and learn from.
MattnSTL wrote:I guess this kind of crushes the good news from a couple months ago. I wonder if someone else will be willing to pick this building up and do something?
Perhaps it only brings to light issues outlined from a couple months ago.
Yeah, I know. I meant to continue the first sentence saying that it also confirms the bad part of that news.
ok, so i know people close to this project. it will be completed eventually although it may likely be rentals for a while, to obtain greater incentives just like some other properties downtown.
In the portion of the story that is only accessible to subscribers, it mentions that it was not possible to obtain a comment from the bank's development spokesman regarding their plans for the property.
OFF THE BLOCK? The troubled Ford Apartments project at 1405 Pine Street has a new buyer, while Montgomery Bank chases 1405 Pine LLC through the courts to collect on a $4.3 million promissory note.
"It is under contract, but I can't say for how much, to who or what will be done with it," said Greg Noe, regional president of the bank, which foreclosed on the property.
Developer Matt Burghoff, principal of Kirkwood-based Mambo Development, planned a $10 million transformation of the building into high-end condominiums priced up to $454,500.
The 45-year-old Burghoff, who was also developing the Bee Hat Building at 1021 Washington Avenue into 36 condos, is under indictment on federal charges of bank fraud, money laundering and violations of the Clean Air Act.
On Sept. 9, St. Louis County Circuit Judge Tom DePriest denied a motion to dismiss collection of the promissory note from 1405 Pine LLC, Burghoff, his wife, Carolyn Burghoff, and Thomas E. Howard Jr. The money was to be used in the Ford development.
ST. LOUIS -- A downtown developer pleaded guilty to federal bank fraud and environmental charges Wednesday morning and now faces up to two and a half years in federal prison.
Matthew E. Burghoff, of Mambo Development, admitted that he'd been improperly removing asbestos from a building at 1405 Pine in St. Louis. He also admitted that he'd committed bank fraud by using loans for the renovation of a commercial building in Kirkwood for “other purposes,” including his own bills and a second home in Mexico.
Under federal sentencing guidelines, Burghoff, 45, faces 24 to 30 months in prison.
Blue Shutters buys Ford, plans apartment conversion
St. Louis Business Journal - by Lisa R. Brown
Montgomery Bank has sold the vacant Ford Building to Blue Shutters Development, which plans to convert the 14-story building on the western edge of downtown into apartments.
Blue Shutters closed on the purchase of the building at 1401 Pine St. for $3.1 million in early October. Blue Shutters principal Peter George Sr. declined to comment about his plans until after a tax increment financing (TIF) hearing planned for Dec. 10.
Blue Shutters Development specializes in historic Saint Louis City redevelopment projects that encompass single family, multi family and commercial property.
About Us
Blue Shutters Development
Peter D. George Sr.
Peter D. George, Sr. - has been involved with valuing real estate since 2003. Prior to starting Blue Shutters Development, Peter built an in-house appraisal firm for one of the largest mortgage companies in St. Louis. He started his appraiser's apprenticeship with Real Estate Analysts Limited. His previous work experiences have included positions with Charles Schwab and Company’s headquarters in San Francisco, Providian Financial, Cendant Corporation and Household Credit Services.
During his appraisal career Peter has valued many commercial and residential properties. Blue Shutters Appraisal Group specializes in the Missouri and Illinois markets with higher emphasis on St. Louis City and County, St. Charles, Jefferson, and Franklin Counties.
Past experience includes strip centers, office warehouses, DOT right of way, condemnation, litigation services, single-family residences, multifamily residences, mixed-use properties, land and large multimillion dollar homes.
In addition to his appraisal practice, Peter is a commercial and residential developer of properties in St. Louis.
Peter holds a B.A. of Business degree with a major in Marketing from the University of Missouri.
Theire prior development properties are listed here.
A conversation real estate appraiser Peter George Sr. had with a homeowner in the Fox Park neighborhood in south St. Louis city two years ago sparked his interest in homes in the area. Today, George, chief executive of Blue Shutters Development, is well on his way to rehabbing his goal of 30 homes a year in south St. Louis.
<snip>
George said his goal from the outset was to buy homes that were in the worst neighborhood possible in order to have the most impact for change in the area. "The block gets progressively worse from Grand east to Jefferson," George said. "The 2600 block of Shenandoah is the worst of them all. The people of the community were kind of at their wits end with a bad element in there."
Blue Shutters is doing a complete gut rehab on each of the homes, putting in new electric, HVAC systems, moldings and roofs. Each home is being restored to be historically correct, from the scale of the staircase to using the original spindles.
Peter D. George, Blue Shutters Development, L.LC., sees opportunities where other developers see only risks. Yet, by taking risks, George has spearheaded the rejuvenation of dilapidated and economically under-served neighborhoods of Old North St. Louis.
Using state and federal historic tax credits, George has transformed numerous abandoned buildings in the Fox Park, North City, and Hyde Park neighborhoods into owner-occupied residential units. Over the past six years, he has led by example. His efforts have shown other developers that these neighborhoods have valuable resources that are ripe for redevelopment. His investments created synergy that has encouraged additional investments that are bringing long-neglected neighborhoods back to life.
Just going on the above, it sounds like they couldn't have found a better buyer for this property.
^ and ^^. C'mon folks, the ends clearly justify the means. We should all applaud "the last guy", apparently.
saltearth wrote:Please consider with your sophomoric responses that this is an individual with a family, who possibly got in over his head in trying to develop or capitalize on the activities downtown. His investments are not only in the Ford, but also in other developments, restaurants and even retail. This is a very sad occurence. Let us not forget, "innocent until proven guilty." Without folks making the attempt to do something with what once was much more we would all be looking at a bunch of cool empty buildings.
^ I think what saltearth meant was that if a person were to defraud bank(s) and endanger the public's health, it couldn't have been crafted by a nicer guy.
Atleast something is being done with this prominent building. Any info on the new developers?