Yesterday there was an advertised notice in the Birmingham News that Jemison Flats, the luxury mixed-use apartment building housed in the former Chamber of Commerce building on the 1900 block of First Avenue North, has been foreclosed and is up for auction. It is item #659 visible at this auction link, with a minimum bid of $2,275,000 (a seemingly very low figure).
This is a sobering example of the continued turmoil in real estate markets: while outwardly successful, full of happy residential and commercial tenants, hidden aspects of the project financing probably became an issue over the last few years.
We have worked on several plans for exciting projects, downtown and otherwise, that are on hold indefinitely due to lack of financing. While interesting, small-scale projects that are mainly owner-financed are thankfully still occurring, and very large-scale institutional projects (hospitals) are also occurring–there’s a huge swath of potential that’s not being realized right now. Hopefully these projects–and the Jemison Flats building– will get back on their feet as soon as possible.
[thanks to argusfoto for the pic]