Edgerton development struggles to fill space
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Kim Schuetz, the new real estate agent representing the Fulton Square condos, plans to throw a “grand reopening” for the project from 1 to 5 p.m. Sunday, Jan. 10.
The event at 111 W. Fulton St., Edgerton, will include refreshments and door prizes, she said.
“It will be a good event to get people reacquainted with the project,” she said.
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A development in downtown Edgerton isn't selling space as quickly as it hoped. The Fulton Square developer had hoped to sell one or two condos a month, but have yet to sell any. Kyle Geissler reports. You can read more in Wednesday's Janesville Gazette.
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Months after completion, the new Fulton Square mixed use building in downtown Edgerton remains almost completely empty.
EDGERTON — Keller Development couldn’t have picked a worse time to complete a $6 million mixed-used project in downtown Edgerton.
The real estate market has suffered nationwide this year, but the economy has been particularly tough on mixed-use projects, condos and new developments.
Fulton Square, near the corner of highways 51 and 59, is all three. More than six months after completion, the development holds one business and no condo residents.
The developer, Tom Keller, has changed real estate agents and lowered prices on condos in an attempt to generate interest.
Few expected the housing crisis when Keller announced the plans in late 2006. In fact, the city had requested proposals for such a development to attract more people downtown and balance out the businesses on the other side of Fulton Street.
The city promised nearly $1.2 million through tax incremental financing. As the project generates taxes, the city returns the taxes to the developer to pay back investors. The investors, not the city, bear the risk if the project fails to generate enough tax revenue, Administrator Ramona Flanigan said.
The project, completed in spring, includes 26 condos and 16,000 square feet of commercial space. Petry Chiropractic & Wellness bought 3,200 square feet of space and relocated its clinic there.
Two other businesses are interested in renting space, though those deals won’t be finalized for a few weeks, Keller said.
“We always thought the commercial (space) might be the last to go, so we’re relatively happy with that,” he said.
The residential side is another story.
Five potential buyers have submitted written offers for condos, but none could get the necessary financing, said Paula Carrier of Best Realty.
Lenders have been reluctant to finance condos, especially in new buildings, she said.
“In my 100 percent opinion, it is lending standards that are hurting that building,” Carrier said. “It’s not lack of buyers. It’s not lack of interest.”
Until a few weeks ago, Carrier and Chris Sweeney of Pat’s Realty shared responsibility for marketing the condos. When their contract ran up, Keller switched to Kim Schuetz of Bunbury & Associates.
Keller wasn’t unhappy with Carrier and Sweeney’s work, but the lender was pressuring him to make changes, he said. He said it’s not uncommon for lenders to demand changes even with projects that are doing well.
He also has lowered the asking price. Some condos now are available for less than $100,000.
Schuetz plans to market the condos from Janesville to Madison, she said.
“This could be a good fit for a Madison condo dweller who maybe can’t afford a Madison condo,” she said.
Keller had hoped to sell one or two condos a month, and that’s still his goal for 2010, he said. He believes the nation has seen the worst of the recession and the real estate market is starting to revive.
“In general, people are sensing that the economy is coming back,” he said.
Jan 1, 2010 at 6:31 p.m.
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I wonder if the city of Edgerton was banking on the property taxes this would bring in. With it just sitting with no money coming in I don't wonder who will be asked to pony up some tax money?
Jan 1, 2010 at 9:26 a.m.
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maybe they can use it as the new hospital?
Dec 31, 2009 at 2:12 p.m.
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Like I said before....got a bad feeling about another repeat of the Carlton fire happening here when none of these sell.
Dec 31, 2009 at 11:36 a.m.
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Did I read this story correctly? The condo prices went DOWN?
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Nine months ago Carrier said prices were going to go UP.
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"I just feel bad for those who are going to wait two years, and the prices are going to go up, and the rates are going to go up," she said. "They're going to be unhappy."
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http://gazettextra.com/news/2009/mar/01/...
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Yes, I'm sure buyers would be unhappy that waiting nine months appears to have saved them $40K, as an earlier newstory put the price of the cheapest condos at $112K.
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Dec 31, 2009 at 11:30 a.m.
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"Schuetz plans to market the condos from Janesville to Madison, she said."
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“This could be a good fit for a Madison condo dweller who maybe can’t afford a Madison condo,” she said."
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This was already done - for not too much more money you can buy a condo in Madison and save yourself the $200 plus per month commuting cost. Again, "buyers from Madison are going to save us" or "snowbirds are going to save us."
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The <100K units all appear to be one bedroom - you can rent a 1br appartment in Madison for less than the $685 - $740/month it would cost to buy the 1 br AND not have the $200+ wear and tear on the vehicle.
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"Five potential buyers have submitted written offers for condos, but none could get the necessary financing, said Paula Carrier of Best Realty."
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Okay, the condo price was too high or the persons did not have enough of a downpayment. I guess the tax credit isn't working.
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Dec 31, 2009 at 10:37 a.m.
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I also heard it was built poorly and already has mold. I can't believe people actually thought that building would thrive in Edgerton. Get a clue!
Dec 31, 2009 at 9:13 a.m.
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Who's going to purchase those condo? Answer: MORE slum lords. Then the new side will look like the old side soon. Who would want to live next to railroad tracks and a town full of nothing but bars. City officials, "what were you thinking"? Oh, that's right, the city administrator doesn't even live in Edgerton. No concern there.
Dec 31, 2009 at 8:19 a.m.
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Shame on Eric Thompson the Mayor of Edgerton. Why didn't he listen to his citizens???
The building really is an eye sore. Not to mention they are in the "historic section" of Edgerton, but didn't have to comply like others have downtown. For example, they used vinyl siding whereas another business was told they could not use vinyl a few years back. Double standards and not paying attention to details. Sure this project could have brought more tax dollars to the city, but how's that going to work now?? It's really disgusting.
As far as the 1.2 million, where was that cooperation when LeMans Corporation wanted to build their new building many years ago??? This city has lost some very good businesses this way.
Love my town, but I've always wished government officials would start to think more about the details and long term issues.
Dec 31, 2009 at 7:54 a.m.
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What a HORRIBLE Location. You get to look your window and see bars and a few other run-down buildings.
Dec 31, 2009 at 6:50 a.m.
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I wonder if he got Tif money for this. If he did Edgerton citizens should be concerned.
Dec 31, 2009 at 6:38 a.m.
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City father's at there best again
Dec 31, 2009 at 6:38 a.m.
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It looked better as a parking lot anyway
Dec 31, 2009 at 6:37 a.m.
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It looked better as a parking lot anyway!!
Dec 31, 2009 at 3:29 a.m.
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Now City hall is putting up a new building. Why are they not utilizing this space instead? Another tax bill for the taxpayers.
Dec 30, 2009 at 7:32 p.m.
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it may look nice , but the view train on one side of the building older buildings accross the street, most people in edgerton didnt want this , but it went through like most other things do there.local businesses lost money with the loss in parking while they built this. the turn over in business down there is amazing, why would they think it would be any different on the other side of the street.
Dec 30, 2009 at 6:54 p.m.
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"He also has lowered the asking price. Some condos now are available for less than $100,000."
Why in the world would you want to buy a condo in Edgerton, of all places, even for under a 100k? It all looks very nice, but even without the economic dump that happened, you couldn't pay me to buy those...sorry.
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