Residential Development- 47 Acre Development/ Residential
This asset is a large scale residential development located in Illinois. The development is partially built out and approximately one-third of the subdivision has residences. The community includes fully furnished models and has a few spec homes. Of the specs, two are unfinished and there are lots that have only foundations installed. The community is overgrown with uncut common areas.
The development had numerous problems. Some of them included city violations, mold issues in the basement of the models (due to basements flooding), instability in the community do to the uncertainty, debris on the streets, and extremely high real estate taxes based on unrealistic market conditions.
Help improve the position of the community by improving the asset disposition through infrastructure improvements and real estate tax appeals.
ALPS Property Management was appointed as court receivers on the project to help stabilize and maintain value in the asset. Immediately, ALPS secured the property and conducted an Asset Evaluation on the condition of property. Numerous improvements were recommended which included coordination with the city on the violations. The subdivision was cleaned up of all debris, common areas were mowed and trimmed, and a mold remediation plan was enacted with the models.
A communication was established with the existing residents to ensure that the community was stable and to make them aware of the improvements that were planned.
In addition, ALPS filed a real estate tax appeal for a refund on 2009 taxes and filed a Certificate of Correction for 2010. We were successful in reducing the real estate taxes which resulted in a savings of over $450,000.