Investor steps in to rescue Ibiza as project switches to apartments

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clipped from columbus.bizjournals.com Core Properties LLC may take over development of the troubled Ibiza housing high-rise in Columbus’ Short North. Partner Jeff Coopersmith confirmed the real estate investment firm, best known for hotels and medical office buildings, wants to revive the project at 830 N. High St., creating 155 apartments rather than the condominiums envisioned for the 11-story building. File photo by Janet Adams | Business First The 11-story Ibiza tower at North High Street and East Hubbard Avenue is the subject of five lawsuits against developer Apex Realty filed by buyers who made deposits but never saw the building erected. View Larger “It’s a project that is phenomenally unique with its amenities and its great location that could make it a defining project for the Short North,” Coopersmith said. “We think it will do well as long as we make sure the numbers work.” Apex Realty Enterprises LLC, an affiliate of developer Arms Properties, unveiled the project, then dubbed Urban Oasis, in 2006. It bought the bulk of the site at North High Street and East Hubbard Avenue for $4.7 million in March 2007. Read more: Investor steps in to rescue Ibiza as project switches to apartments - Business First of Columbus

clipped from www.dispatch.com The developer of the failed Ibiza housing project in the Short North says it has signed an agreement with a "large Columbus developer" to build apartments instead of condos on the site. "The goal is the exact same building," said Scot Dewhirst, an attorney representing the developer, Apex Realty Enterprises. "I think it's still going to be an exciting project for the Short North." While Apex tries to revive the project, lawsuits mount against the company from investors seeking to get their condo deposits back. "I've lost faith in the developers," said Joanne Strasser, 31, who is suing for the return of $15,000 she deposited on a $275,000 condominium in 2008. "I think it's really unfortunate because I believe the project would have been a great one." Strasser is among more than 60 buyers who deposited an estimated $1 million on condos in Ibiza, which was designed to be the neighborhood's largest condo project, featuring 135 homes in two 11-story towers. Dewhirst said Apex has reached an agreement with an unnamed developer that would allow all the deposits to be returned with interest. "Our goal is to resolve those disputes," said Dewhirst, a partner with the Columbus firm Artz, Dewhirst & Wheeler. "We want to pay that money back as soon as possible." Dewhirst said Apex is also working with the U.S. Department of Housing and Urban Development on the revised project. In a May 13 e-mail included in court filings, Apex partner Michael Council told investors: "We are also moving down the path with HUD to get the project financed as an apartment project." Tom Leach, the director of HUD's Columbus field office, said Apex approached HUD about a year ago to discuss the project, but HUD has seen no plan since. "There's no current proposal submitted, and the previous discussions were preliminary," Leach said. "There's no action pending by HUD." Dewhirst said the Columbus developer will be identified as soon as due diligence is completed. He said he could not say when construction will begin or deposit money will be returned. Apex has told depositors that they can sign a note that would provide a judgment against Apex if the money is not returned by Dec. 6. Strasser said she declined to sign the note because she thnks Apex already has violated its contract. "I hope everybody gets their money back," said Strasser, who bought a home in Victorian Village after giving up on Ibiza. "I just don't feel comfortable putting my signature to another agreement with Apex." At least five investors have filed suits accusing Apex of systematically misrepresenting the project and of failing to build the condos as agreed to in contracts. In addition to Strasser, a suit was recently filed by Mark McGuire and Timothy O'Neill, who deposited $16,500 on a $325,000 unit. The suits are similar to others filed this year: Michael Saucedo and Reena Buddhdev sued for the return of $11,500 they deposited on a $230,000 condo; the Simon Group sued for the return of $74,750 deposited on a $1.5 million condo; and Roy and Debra Walters sued for the return of $17,250 deposited on a $345,000 condo.