The United States Bankruptcy Court gave permission for a Fayetteville developer to begin conversion of the historic Prince Charles building downtown into condominiums and “micro” offices. The developer will be required to complete a feasibility study that will explain his plans to renovate the dilapidated landmark into 450-square-foot offices and small condominium spaces that will sell for under $100,000. The plans have been delayed by business disputes between the building’s current New York owner, who is in bankruptcy, and the city, which has a lien on the property.
The developer plans to turn the building into a showplace with a bar and restaurant, health club and business center as well as a ballroom on the eighth floor. He estimates the project will cost $6 million. The investor was reluctant to put in the money without having the bankruptcy court’s approval of the Chapter 11 reorganization plan so that he could get clear title from the owner.
The city has been assessing fines of approximately $100 per day for building code violations. The city currently holds a lien of approximately $78,000 against the owner, which must be satisfied at some point before title can be transferred. However, the new investor is hopeful that he can recover the title and make the Prince Charles into a downtown landmark once again.
Investors and others who are facing complicated purchases of property may find it useful to retain a business attorney for advice. A business attorney may be able to help those who are considering a large purchase understand the problems and obstacles that they may face.
Source: The Fayetteville Observer, “Bankruptcy court gives approval for Prince Charles development deal”, Andrew Barksdale, April 27, 2013