Comment and analysis on all things Charlotte

Another City Real Estate Deal Gone Bad

Wonderful. At a minimum city taxpayers are going to be out $250K due the city of Charlotte’s latest attempt to play estate mogul. The deal which sold developer Robert Drakeford seven acres Uptown for $460,000 less than its market value of $790,000 has completely blown up. Now city staff wants to buy back the land for $580,000.

You are doing it wrong.

Once again the city tried to get cute and get something city staff wanted — in this case, “affordable housing” — for nothing. City council, as usual, rubber-stamped the scheme.

For those playing at home, that is the third questionable “economic development” outcome for the city in recent months. First, we had the still unexplained $550,000 bailout of Uptown wheeler-dealer Afshin Ghazi in his hour of need, then the sweetheart option to buy the Parkwood Food Mart for $472,000 from an owner who owed back taxes to the city and county.

Update: Ha! I see that someone ran over and paid the $3400 owed on the food mart immediately after I started asking questions about the taxes due. In fact, the paid date is back-dated because the taxes had not been paid as of Aug. 27th, and payment is dated the 26th.

3 Responses to “Another City Real Estate Deal Gone Bad”

  • Oct

    I believe there are a lot of smart people in this world, but not that many are employed by the city.
    Observation—-Being employed by the city does not mean you WORK for the city. With the city of Charlotte employment does not = work, it just means you have a job with benefits.

    It is easy to make real estate deals when money does not matter . The value of a dollar escapes those who make these kind of judgments. They could care less if they made a bad deal or worse yet it never occurs to them that they did.

  • Oct

    OK, now help me out her, Jeff. I want to be sure I understand:

    Wachovia is about to cease to exist, and with it likely a number of jobs, many of which occupy space in and near uptown, so arguably the supply of available office and commercial space will increase and demand will decrease.

    Several major condo deals have recently slowed to a crawl if not halted completely, indicating that the residential market uptown may be contracting.

    Credit is a bit tight these days, making the likelihood of a surge in demand for real estate of all sorts somewhat unlikely in the near term future.

    Real estate values have been falling at a quick enough pace to have put most speculators, developers, and investors on the sidelines while they wait for signs that the bottom has been reached.

    Sub-prime mortgages have basically ceased to exist, as have zero down mortgages, and relaxed income and credit standards for mortgages.

    Taking all of that into consideration the city staff thinks it’s a good idea to BUY land that they don’t need for city uses; they think they need to pay a premium to get such land; and they think they’ll then have no trouble selling it to a new buyer with a number of strings attached that will require him to build inexpensive houses designed to be purchased by people who will not qualify for a standard mortgage? Is that about right?

  • Jul

    […] Drakeford, recall, was sold seven acres of prime Uptown land at an almost $500,000 discount by the city. The city wanted “affordable housing” on the site. Didn’t work out. […]

February 2016
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