203 Erskine

woa, huge abandoned complex called the patterson terrace (at auction in 3 parts). big photo gallery at detroit funk: http://detroitfunk.com/?tag=patterson-terrace

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Anyone know if there is some collective effort to purchase and do something with this?

I agree with Eric. How feasible would it be to do something like Spaulding Court, using crowdfunding and other collective efforts, Jerry?

The loss of Patterson Terrace would be yet another tragic loss to the Brush Park community. Note that the entire complex has been split into condos, and I think someone mentioned last week that the Kappas may own the others that are not at the auction. The unfortunate history of the Kappas benign neglect of other homes in the area (note the recent demo of 2 kappa houses nearby) could be the greatest impediment to any positive effort for change. But-never say never. My recollection is that the building was starting a renovation prior to the Republicans destroying the global economy, so there was some momentum.

Considering that foundation money, grants, and crowdfunding are being used around the city (Spaulding, in particular), be aware that it's an incredibly tough slog, but decidedly do-able if you have the iron will, engage the community, and make a long term commitment to see it through. Starting with a historic, significant property such as this makes a great starting point. Talk to the Kappas (or whoever the other owners are), see if you can start a dialogue, and go from there...or just buy them at the auction and move forward to see what happens next.

This property is worth making a try...

I throw this out to the WDWOT community:

I'm interested in this property, but only 3 of the 7 parcels that constitute Patterson Terrace (which is one structure) are in the auction. Of the remaining four parcels, 3 are owned by one woman (who is paid up on her taxes) and the remaining 1 is owned by a man who is a couple years delinquent on his taxes -- his looks headed to auction next year, unless he suddenly steps up with the money.

I've tried my best to contact the woman who owns the three parcels - sent letters and more to try to reach her - and have gotten no response. Reports have it that she wants "a lot" for her three properties, but I've no more specific information than that.

It seems to me that buying the 3 parcels in the auction would put me in a bad position for acquiring the remaining 4 -- I'd have to buy them to do anything with the structure since it's all the same building, but I'd be at a disadvantage in negotiating.

However, if I don't bid on the 3 in the auction and they go over to the city, then they could fall into a black hole and never become available again, especially since the city has 3 of the 7 parcels on their demolition list (apparently they don't realize this is all one building...)

Any thoughts or suggestions? To bid or not to bid?

Things to Consider before you bid : Those 3 parcels together will be $5000+ per year in taxes. To totally renovate those 3 units will cost $250,000 . If you are investing that kind of money you will need insurance on 3 properties . In that area thats another $1500 per property $4500 total. So basically $10,000 per year before you even start with any work . Add the probable cost of acquiring those 3 units at this auction. $7000 per unit ?? You could do a lot better with any number of other properties at the auction .

Who is going to pay $7000 plus for any of these? Yes they are beautiful, but like you say citibank...taxes, insurance and (most importantly) redevelopment costs don't really make it worth bidding that much on these for the sake of trying to make a lucrative "investment."

Jeff, Bill, OlMucky, Jerry, basically anyone interested...what are some ideas y'all have for this.

I personally do not know a ton about rehabbing old properties, so if anyone does and could make a decent estimate of how much it would cost to make it "protected" from weather, break-ins, etc. please add it here.

If we have an idea of that, it would be easier to know if there is any sense in trying to organize some people around creating and implementing a vision for this property. We all see its potential, don't we?

Buy 3/7ths of this complex would be worthless. Here is the Catch22 of rehabbing in the city: the cost on entry is cheap, but the cost of rehabbing is not and net value when you're done means your ROI is decades away. This structure is a liability and added cost vs. an empty lot. We are not it NYC or Chicago, where rehabs add value and their costs are easily recouped.

For this to make economic sense, it needs to be developed on the scale of the Auburn Apts. 3-4 stories, rooftop terraces, keep the walls, gut the rest. You need the whole building and be able to rent it for MORE than the new lofts/apts. on the west side of Woodward.

Soooo, it's crazy to bid on these units, right? It's all about control, vision, energy, and potential. Let's assume nobody is going to bid, including the other owners. Pay $1500 for all 3, and you've bought 3 years to work out the details, challenge the assessments, put together the deals for the other units and move forward.

Crazy? Certainly. A guaranteed home run? This is Detroit-chances of success: low. An important historical and community project? Absolutely. Try to make a run at it if you want to work like hell and make a difference.

Ultimately, just looking at throwing $1500 away (if you can afford to throw $1500 away) isn't as bad as seeing the units turned into yet another vacant lot.

Yeah its crazy. But you have to be crazy to buy some of these properties. I am also looking at a commercial property where half of the roof is burnt down. Its a total sh*t hole inside. But with a little vision and some elbow grease you might be able to do something with it. I say go for it. Worst comes to worse, you are out $1500. Make sure you do it all under an LLC though to protect yourself.

I'm not debating the value of improving this property. That is why I am looking and commenting on it. I just think that from a financial standpoint this property will need very deep pockets to do it right and a long wait to get your money back. I think there are other properties that can make a great impact with less resources and risk.

BTW, look at my comments on the largest white elephant in the auction! :D