THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, January 20, 1996 TAG: 9601200297
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: PORTSMOUTH LENGTH: Long : 103 lines
Once an albatross hanging from city officials' necks, a luxury condominium and townhouse development apparently is on its way to becoming the downtown waterfront's ``crown jewel.''
First Equitable Realty, a Miami-based real estate company, announced Friday that it has purchased the unfinished ``Kings Crossing'' development. The company, acting through a subsidiary, paid the city's Redevelopment and Housing Authority $1.5 million for the property.
When buying the troubled property more than two years ago, city leaders hoped to protect its use and turn it into the anchor of their downtown revitalization effort.
``Our whole purpose is to stimulate tax-generating development on our waterfront,'' said Danny Cruce, executive director of city's housing authority. ``These residents will be upper-income residents. They'll be spending, hopefully, quite a bit of money downtown.''
In August, First Equitable Realty signed a letter of intent to finish the project and began contracting out construction work. But the company, which specializes in acquiring and turning around troubled properties, did not finalize the purchase until Thursday afternoon.
``There have been very complex negotiations,'' Cruce said.
Once talks crystallized, an obstacle emerged. The two sides realized that the previous owners did not have complete drawings and plan specifications for the dwellings.
``That took some time,'' Cruce said.
And money.
City officials, in addition to paying $2.1 million for the property, had to shell out an additional $150,000 to commission an architect. Once the drawings were in hand, First Equitable paid up.
The assessed value of the property is $6.8 million.
First Equitable says it's now putting the finishing touches on the dwellings, as well as building a swimming pool, billiard room and tennis courts. On the ground floor, about 15,000 square feet of space will be set aside for commercial use. As part of the deal, the housing authority will retain 5,000 square feet of that space, valued at about $500,000, Cruce said.
While First Equitable plans to stick with the project, it wants to leave the Kings Crossing name behind. The upscale complex, which will target yuppies and retirees, will be renamed Admiral's Landing.
Prices will range from $109,000 for the base model to $313,000 for a penthouse with a whirlpool tub, chef's kitchen, plush carpeting and marble flooring.
The eight-story complex includes 56 condominiums and five townhouses on the side, said Zeez Newman, a sales director for Admiral's Landing.
By the spring, the development should be finished, with new homeowners' moving vans lined up outside, said Joel M. Gamel, president of First Equitable Realty. So far, he said, staff have sold 20 percent of the townhouses and condominiums.
City leaders have long envisioned Kings Crossing - next to a planned inlet, ferry landing and park - as a vital part of their quest to revitalize downtown Portsmouth.
``The building is a crown jewel on our waterfront,'' said Cruce, the housing authority director. ``We feel very fortunate to have located these developers to bring this important project to fruition.''
But things didn't fall into place so easily.
Developer Master Development Corp. first broke ground on the project about nine years ago. But under Master, a subsidiary of Norfolk-based thrift Home Savings Bank, the project faltered and was delayed.
Home Savings purchased Kings Crossing at foreclosure in 1991. But a year later, the federal Resolution Trust Corp. seized control of the thrift and stopped construction.
Since 1992, the building has been barren, an eyesore for the city's downtown waterfront. The housing authority purchased the building to protect its use rather than risk having the RTC sell the property to a company that wouldn't fit into the city's plans. ILLUSTRATION: 1992 FILE PHOTO
1987
Work crews break ground on the Kings Crossing condominium complex,
which overlooks Portsmouth's waterfront, but the developers run into
financial trouble.
1992
The Resolution Trust Corp. takes the building at 175 Water St.
during the savings and loan crisis that left the previous owners
bankrupt.
1993
The Portsmouth Redevelopment and Housing Authority buys the building
so that the city can control its use.
August 1995
First Equitable Realty of Miami signs a letter of intent to purchase
the troubled property. The company signs on contractors and begins
work on the development.
January 1996
The city and First Equitable finalize the $1.5 million purchase. The
company has sold 20 percent of the units in the renamed "Admiral's
Landing" and plans to finish construction within 90 days.
by CNB