By Kevin Collison
A $14 million apartment project planned for the southwest corner of Linwood and Troost is moving forward following approval of a 25-year property tax abatement by a city development agency last week.
UC-B Properties intends to build an 89-unit project at the key intersection, the latest new investment along Troost.
Even with the tax breaks however, the developer’s profit is projected to be significantly less than normally the case for similar projects elsewhere, according to a consultant report to the Planned Industrial Expansion Authority.
“In the case of this project the Developer believes the redevelopment of the site is of importance to the community as a whole, and was something they were seeking to undertake because of that importance and not solely because of a financial return,” the report stated.
The PIEA board granted UC-B a standard 10-year, 100 percent abatement and a 50 percent, 15-year abatement.
The agency’s consultant, Springsted, estimated the developer will have an unleveraged rate of return of 4.64 percent vs. the 7.2 percent average for similar projects.
Lance Carlton, a partner at UC-B Properties, told the board he and his partner John Hoffman believe in the area’s potential and want to contribute to its revival. At one time, the area around Linwood and Troost was a bustling commercial strip, but now many of its buildings are vacant.
“Our main motive is to bring people to the area,” Carlton said. “Our company is focused on urban infill neighborhoods near downtown. Linwood and Troost is a beacon with a great history.
“We see Troost as part of a larger demographic shift…we’re in the early stage of opportunities for the economy to grow east.”
Carlton said work should begin this summer on the project, which will be an L-shaped building ranging from three- to four stories facing Troost and Linwood. The parking, an 86-space surface lot, will be tucked behind the building.
There will be 34 studio units, 24 one-bedroom and 31 two-bedroom apartments. Rents should range from $800- to $1,200 per month. The project is expected to be completed by fall 2020. The architect is DRAW architecture.
The new Linwood development joins several other residential and commercial projects within a few blocks along Troost including a 182-unit apartment project being built by Milhaus Development at 27th Street and 87 units in the Wonder Shops + Flats redevelopment at 30th Street.
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