38 replies to this topic

[Brian Luenser]

I have been looking at this building for years. (As in, wanting to buy it.) I walk past it a couple times a week walking to Target etc...
In October of 2009, on a nice Saturday morning as I was walking by, I saw a couple of guys taking stuff (junk) out of this building. I had already researched the building a bit. Knew they were behind on their property taxes, owner was in the hospital and ancient. The two guys I was talking to (Not wanting to identify who they were exactly) were relatives. I told them that I was interest in buying the building. They said the owner was in the hospital (I acted dumb. No, dumber than normal) but the building was for sure for sale. I told them I was just about to sell some stock and would pay cash. They were all over it. I handed them my business card (Brian Luenser, CPA VP Finance) with all my contact info. I told them to talk to the old man and give me a call. I went home and told the wife we were about to buy a building. I never got a call. I regretted not getting their phone numbers. I did not have a pen and I would have remembered the 7 digits for 7 seconds. I felt sure they would call. We never talked about how much. I knew they were getting fined by the City for code violations and had unpaid taxes and figured they were sure desperate. These guys looked like they needed money. (I looked the same at the time. I frequently look like a street person with a good camera. Only if you know your cameras.)

Anyway, I was disappointed they did not call me. Then a few weeks ago I researched the old man. (owner) to see that he had died. I was on a new mission. I walked over there only to see a for-sale sign on the place for the first time. DANGIT! So much for my moving in for the kill. But I thought, at least there will be a listing price and it is for sure for sale. To my surprise, it is listed for one million bucks. Ouch. Of course I did not know the real value. I was guessing 600k and was prepared to offer like 400k cash as a starting point. But I am not interested at 1mm. Not saying it isn't worth it. It has more land with it than I thought. (to the South). There is a lot of land for sale East of there but they have never given a price. Make them an offer. Those drive me nuts by the way. I remember my Econ 101 and figure it is "Skimming the demand curve"

What would I do with the building? Likely tear it down. Unless somebody could tell me it is way more sturdy than it looks. It is in my opinion, one of the most premium lots in town. A great view. Close to the river. Between downtown and Montgomery Plaza. It did always seem to me that whoever owned the land just to the East of it would buy that property for more 7th street frontage. Would not be surprised if that happens. I think it is a 2+2=5 for both properties. Anyway, I am looking at a couple of buildings in town. (not actually negotiating yet, just playing with the numbers) This one may be off my list. Now if I see it on the market for a year I may send up a low offer. Crazy place. Crazy good spot.

[John S.]

Brian,

This is an interesting building which was built in the 1920's if I'm not mistaken. Hope I'm not confusing this one with some other one nearby but back when this area was full of used car lots I believe a speedometer repair business used the building. When it was built, there were still remnants of the fabled late 19th and early 20th century Quality Hill neighborhood surrounding it. One by one, the old mansions disappeared in clouds of dust. But the same reasons this area was chosen for premium housing way back then is still valid today: the wonderful views and proximity to downtown. $1 million does seem a little over-valued, but you didn't mention the lot's square footage. (what does TAD have it valued at?)

I know where I live on Samuels Avenue that developers have paid up to $35 a square foot for choice lots on the south end. (where Villa DeLeon and Lincoln Park Apartments now stand) From a(re-)development perspective, I think this site would command a premium depending mostly on the lot size. If a new office tower could be built there, it might justify the rather steep price. As for bargaining with the sellers, you can make your best offer and then let the sellers come back if they decide to accept it. A developer made us an offer for our half-acre double lot back in the summer of 2008 which we rather hastily turned down and countered higher. No deal. If that same offer were made today, it's quite likely we would accept it. As you know, real estate buying and selling has a lot in common with playing poker. If the other side "blinks" then you'll have your deal. Something really nice could be built at this prominent location. Good luck!

[David Love]

I've noticed it as well, it always looked like it would be a bargain type of place, I don't know how many times I've called on a place only to find it just recently sold or changed hands and the new owners want, you guessed it, a million bucks.

I think owners mistake all the attention a place is getting as "real value" when what people are really calling on is the potential a structure or location holds or the possibility of them picking up a bargain.

[John S.]

A competent realtor will advise his or her clients on how to price their property. Of course, using comps to come up with a realistic figure is an inexact science. I have a neighbor who's convinced his property is worth over $750k and has had two different realtors decline to take his listing at that price point. We've all seen examples of over-priced property that stays on the market for years to be finally sold when the owner-seller is willing to take less. Apparently, the seller for this property hasn't reached that point. If it does sell, then it indicates someone thought it was worth it. Land is land, and in real estate, location is everything-this building sits at a good location but maybe not one worth a million dollars. We'll see.

[101Partner]

Brian,
I believe a speedometer repair business used the building.

I thought the speedometer repair business was in the white building to the rear only, but my memory is not that clear. I know I had a speedometer gear replaced in the late 1960's there, wish I could remember the name.

[Brian Luenser]

Walked to Target this morning, in the rain. (was not raining when I left The Tower)

I noticed the 1507 West 7th building has been fenced off, I am guess for demolition. Also there is a bank sign there telling of the coming bank complex. I sure should have bought that building. Without knowing what it sold for, a big statement. For example, it was listed for 1 million bucks. I don't think it was worth more than 600k really. (I am not an expert of values of course.) But that is how real estate goes. You don't have forever to make up your mind. I should have made an offer for 400k and saw what they came back with. I do love that spot. I have a few other locations I am very interested in. I sure wish I knew where the bottom of the market was. I do know this is not the top, so I could have paid more than I would now...
I kind of think we are near the bottom. I need to make a move.

i-phone shot

[John S.]

Brian,
Hindsight's always 20/20 isn't it? But a person does not need a crystal ball to see that the West 7th corridor is "hot" and quite possibly the hottest commercial R.E. area in the City. Are there any other good "deals" out there? Sure there are...but risk is an integral part of R.E. investing especially in the commercial market. It helps if you have a friendly developer who has informed you what he or she is wanting to do and given you a ballpark figure of what they are willing to spend and areas they might consider for their projects. But just as fortunes have been made from smart real estate investments, large fortunes have been lost as well. (as we are constantly reminded by the economic wreckage of the Great Recession) I think for at least a couple of more years (and certainly until after the 2012 national elections) real estate in general will remain sluggish. On a local level, there's not much on the horizon to suggest rapid changes from current conditions although some positive signs have been appearing lately. For one, the apartment/rentals market is likely to remain robust locally and nationally for some time-you simply do not see the rush of renters wanting to become homeowners as was common back in the easy money mortgage days. Mortgage underwriting standards are much tougher and the 20% downpayment (as opposed to zero or 5% in the past) raises the entry bar for a lot of folks. But Fort Worth has a large apartment inventory and it might be easy to over-saturate some areas with new ones. I think that the West 7th corridor area (especially to the north between the old Montgomery Wards and University) might have potential, but surely I'm being late to the game in recognizing that. The West 7th area to the south is already approaching fully built-out status. Notice I haven't mentioned my own "Trinity Uptown" neighborhood? I think the "market" there is entirely artificial and was created by one developer with incredibly bad timing. I would never advise anyone to buy speculatively there because the future for new development may be very far off. (5-10 years or longer) The Trinity Vision downtown lake project is also years if not decades away but if and when it finally comes online I expect interest to become intense as everyone will want to have a "lakeside" project. But it will take years and many millions (if not billions) spent before we will see that happen. Anyhow, just wanted to share my thoughts and hope you find a worthy investment that provides you with a fair return within a reasonable time period. Kind of a sad image of the building awaiting demolition...

[Doohickie]

The lot for that building has been a regrouping point for the Night Riders for quite a while. When we cross the river eastbound on the 7th street bridge, we almost always stop there and let everyone catch up. I've always admired the character of the building but frankly couldn't imagine a good use for it. A new bank building would be so boring, but if it's a good site for that, it is, I guess.

[John T Roberts]

It is unfortunate the building and the two houses on the block are going to be demolished, but they have no historic designation, so protesting or trying to save the building would be a waste of time. I still feel that we need more of our historic buildings designated as landmarks to save our heritage.

[jefffwd]

I hate to be "that guy" but that is one of the ugliest structures I have ever seen... Sometimes change is good!

[Brian Luenser]

I agree Jeff. One of the few old structures that will look much better in a landfill. Not that it is not kind of nostalgic, but really ugly. You could sure put 300k into this building and turn this place from a 700k property to a 720k property. Kind of an eyesore for the unofficial entrance to downtown. As they went many years without paying their property taxes, you have to know the roof leaked big time. Not good for this structure. I am guessing, rotting, moldy and stinky.

I have some good pics of the place, and for that I am glad.


John S. ^ some interesting viewpoints above.

[David Love]

I've been looking at more structures, becoming a bit more serious about purchasing.

I'm sure it's not news to most but the state of the economy has taken a heavy toll on structures, I think it's more due to how financial institutions handle the situation, the property goes from distressed to bank owned to one step from condemned in an alarming short time frame. Industrial and commercial seem to stand up well compared to residential, I've gotten into the habit of not venturing past the front door if it looks or smells too neglected.

I believe the situation may have a long term impact on historical structures.

[Doohickie]

I hate to be "that guy" but that is one of the ugliest structures I have ever seen...

Well I'm the proud owner of a 1973 Schwinn Varsity, so what do I know about aesthetics?

[mmiller2002]

I hate to be "that guy" but that is one of the ugliest structures I have ever seen...

Well I'm the proud owner of a 1973 Schwinn Varsity, so what do I know about aesthetics?

Orange?

[Doohickie]

Of course. I got rid of the drop bars and converted it to an upright bike.



It came from the Fort Worth city dump (actually, one of the drop-off stations).

[liquid snake]

Boy, drove by this place today and it is really a sad sight. Looks like the whole block - as well as the old houses behind this building - are going under. Even though this building looks as run down as anything, it still pains me that some drive thru bank might be licking their chops to build there. This place could/would be a wicked old tore up sandwich shop... just sayin - *and* within walking distance of 7th, Burnett Plaza, and Firestone folks.

[renamerusk]

Boy, drove by this place today and it is really a sad sight. Looks like the whole block - as well as the old houses behind this building - are going under. Even though this building looks as run down as anything, it still pains me that some drive thru bank might be licking their chops to build there. This place could/would be a wicked old tore up sandwich shop... just sayin - *and* within walking distance of 7th, Burnett Plaza, and Firestone folks.

Welcome Mr. Snake. Always glad to have a new blogger, even a snake aboard the "Airplane".

I agree with you; and even though we seem to hold the less popular view, I think the building has some charm. We can keep our hope up that what replaces it will be a pleasant surprise.

Keep Fort Worth folksy.

[cberen1]

Boy, drove by this place today and it is really a sad sight. Looks like the whole block - as well as the old houses behind this building - are going under. Even though this building looks as run down as anything, it still pains me that some drive thru bank might be licking their chops to build there. This place could/would be a wicked old tore up sandwich shop... just sayin - *and* within walking distance of 7th, Burnett Plaza, and Firestone folks.

Welcome Mr. Snake. Always glad to have a new blogger, even a snake aboard the "Airplane".

I agree with you; and even though we seem to hold the less popular view, I think the building has some charm. We can keep our hope up that what replaces it will be a pleasant surprise.

Keep Fort Worth folksy.

I'm worried about another drive thru bank. I'd love to see another building about like the Compass Bank branch there. It doesn't have to be tall, just not a one story lot wart in a sea of unused parking spaces.

[Thurman52]

They said 40 sq ft so that is what 4 stories and parking right?

[cberen1]

I talked to some folks at Community Trust about the site plan. What they'd like to do is build something in the 60 - 70,000 sq ft. range plus parking garage. They need a 25,000 sq ft anchor tennant to make that work. If they can't find a suitable one, they'll do a smaller building, maybe 40,000 sq ft. The issue is that bank regulators don't want banks building/owning speculative space.

As long as they don't build a drive-thru bank like the one across the street I'll be happy. My understanding is that it would be more along the lines of the BBVA Compass branch across from the 7-11.

John, Would it be appropriate to move this to the Commercial Project heading?

[Jeriat]

So they ARE demolishing this thing?

[Doohickie]

I think there is little doubt of that at this point.

[Brian Luenser]

It is all over for this tired place. Pretty sad. (Not that the city doesn't look a lot better) It actually looks better with the pile of junk on the lot than the building looked. Still wish I owned the lot. (But still glad I did not pay 1mm for it.)

[David Love]

Saw that this afternoon and wondered if there was any vintage lumber in there.

[Brian Luenser]

I walked past there twice today. Both times had people in there poking around. Very surprised the project is not fenced off or guarded. I could smell the old place 2 blocks in each direction. Was slightly afraid of toxic dust or fumes. I resisted getting a representative brick out of the pile.

[John T Roberts]

Thanks for posting the update.

[cberen1]

My understanding now is that they have found a development partner and are looking at 100,000 sq. ft., of which the bank will initially occupy about 20,000. I'm trying to get renderings to post here.

[renamerusk]

My understanding now is that they have found a development partner and are looking at 100,000 sq. ft., of which the bank will initially occupy about 20,000. I'm trying to get renderings to post here.

Exciting update; looking forward to viewing those renderings.

Keep Fort Worth folksy

[Brian Luenser]

Sure enough scraped clean. The 1507 building as well as the old house South of it. I am happy to see that they are looking like they are trying to preserve the row of trees. Also note, the amount of leaves on the trees in one week. (Can hardly see 7-11 this week. Look at last week from the same spot.)

[Cowtown Mike]

Can't even think of the number of time I drove past that building since 1966 when we came to Fort Worth. It does look better with it gone. Thanks for the updates.

[youngalum]

Can't even think of the number of time I drove past that building since 1966 when we came to Fort Worth. It does look better with it gone. Thanks for the updates.

Anything looks better than a dilapidated old building sitting there failing down.

[Volare]

I wonder where the Hobie Cat went?

[cberen1]

OK. I got a chance to see some renderings. I took pictures with my iPhone. I don't post pictures, but if someone will volunteer to do it I'll email you the ones I took and you can post them.

[Brian Luenser]

cberen1 shot me the renderings of the Community Bank and Trust complex to be built on this lot. (Thank you very much)

Wow. This is very exciting for the city. I love what I see here. These structures will really make a nice contribution to that strip in my opinion. Could be pretty amazing looking really. (I should make sure there is no more cheap lots in the area before these pics get circulated very far.) This is, for sure in my opinion, the best we could have ever hoped for for that land. First, to combine those lots and make a larger complex than a bunch of single yahoo's buying and building on it piece by piece. (Like I would have done.) Very impressed. Cross your fingers that the economy does some healing quickly as to keep this project moving forward.

[John T Roberts]

It's good to see a quality development going in on this block.

[JBB]

That's really sharp looking. The setback from 7th and Penn is a little awkward, but I suppose that's because it is oriented more toward Summit. I like it.

[wfsmith10]

Is that a drive-thru on summit & seventh? I hope this building doesn't ignore potential foot traffic.

[John T Roberts]

The site plan indicates there is some sort of drive-thru there, but the building views don't.

[Volare]

The "boat" top view is very in these days. First Omni, now this...