Wednesday, October 27, 2010

Potential investment in Catskill

Union Mills to be sold


Condominiums go on the block today

By Colin DeVries
Hudson-Catskill Newspapers
Published: Wednesday, October 27, 2010 6:17 AM EDT
CATSKILL — The ambitious condominium project touted as part of a village-wide renaissance is now on the auction block.

The Union Mills Lofts, consisting of a Main Street storefront and a 45,400-square-foot six-level Water Street condominium complex, will be sold to the highest bidder on Wednesday at noon. The auction will take place in the 361 Main Street storefront.

The auctioneer, Tranzon LLC, has set the minimum bid at $1.5 million and requires a buyer’s premium of 10 percent, a 30-day closing, and a 10 percent deposit with a minimum of $50,000 in guaranteed funds.

According to
tranzon.com, about $7 million has already been invested into the property. The project proposed 25 loft condos and included a 24,000-square-foot commercial space on Main Street.


 
Construction techniques involved state-of-the-art energy efficiency improvements, and recycling materials already existing in the 19th century warehouse once used to produce garments for the Union Army.

Former project developer Jim Cunliffe was reached by phone Monday and said the original group of investors, Catskill Manor LLC, made the decision to auction.

“It was made by the shareholders outside of my remit,” he said.

Cunliffe and another group of investors had made an offer to purchase the property but it was decided it should be bid on.

“It’s just getting thrown into the wind to see what happens,” he said.

Though the business model and development plan were on track for the condominiums, Cunliffe said “the market and everything around it changed.”

Permitting started in 2007 and construction started in earnest in 2008, evidently interrupted by the housing market crash that year. The death of the primary investor in 2009 also severely impacted development progress.

Gary DiMauro Real Estate listed the property in March for $4 million. On Monday it was listed at
garydimauro.com for $2.5 million.

More information on the Union Mills Lofts is available at
unionmills-catskill.com.

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