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  #181  
Old Posted Nov 25, 2008, 10:30 PM
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Lots of info in this weeks BIV, sorry no link available you'll have to buy a copy.

Towering turmoil Jameson House seeks creditor protection as financing for 37-storey mixed-usedowntown development evaporates

Once touted as an architectural landmark placing Vancouver in the same league as New York, Hong Kong and London, the Jameson House project at 838 West Hastings has fallen prey to worldclass financing troubles.
Jameson House Properties Ltd. and Jameson House Ventures Ltd., the Vancouver companies developing the mixed-use project designed by the firm of renowned U.K. architect Sir Norman FosterFoster,sought protection from creditors under the federal Companies’ Creditors Arrangement Act in B.C. Supreme Court on November 14. Court documents state that Jameson is working with Ernst & Young Inc. on restructuring the companies to secure the financing to complete the project. The petition argues that protection, rather than receivership, offers the best chance for the project’s survival and payment of creditors. Jameson broke ground on the 37-storey project in December 2007 backed by $49.9 million in financing from mezzanine lenders anda commitment of construction financing from HSBC Bank Canada, which was seeking to assemble a syndicate of lenders. But the tightening of credit markets this past summer squeezed the financing available to Jameson. An initial offer by the HSBC led lenders in May 2008 provided for a loan of $165 million, but it decreased during subsequent discussions.
By September, court documents indicate that the financing offer stood at $155 million, with Jameson required to stake an additional $10 million in equity or mezzanine financing. The financing discussions collapsed at the end of October when one of the syndicate’s senior lenders backed away from the deal. A few days later, the Washington family’s CopperLion Capital, one of the project’s mezzanine lenders, put Jameson on notice that its loan could be called. The developer’s petition for protection from creditors followed 10days later. The Washington family also owns the North Vancouver-based Washington Marine Group of Companies.

“It is the belief of the petitioners that this was precipitated by the world financial markets turmoil, the tightening of credit by lending institutions and had nothing to do with the viability of the Jameson House Project,” court documents state. Regardless of HSBC’s optimism concerning the syndicate’s prospects, Jameson has “virtually depleted all cash reserves” and is unable to pay its creditors or proceed with construction of Jameson House. This, despite the fact that Jameson’s assets of $70.8 million exceed its liabilities by $9.9 million. Total revenue from the project was set to top $240 million, and presales had already garnered $154 million. Jameson DevelopmentGroup members contributed $10 million toward the project. The top three trade creditors include contractor EllisDon Westpro Construction Inc., architect Foster & Partners and marketing firm Rennie Marketing Systems. Together the three firms are owed more than $3.3 million. Deposits from buyers in the project remain in trust, and Jameson is contacting them about its restructuring plans. Tony Pappajohn, principal of the family-owned Jameson Development Group (the aegis under which the two affected companies operate), declined additional comment on the situation. Announced in spring 2006, Jameson House was to have 144 residential units, 55,000 square feet of office space and three storeys of retail space with a targeted completion date of fall 2009. The foundation and two levels of underground parking were finished prior to work stopping on November 12. Approximately 65% of the 144 residential units sold. The tower incorporated a number of sustainable design features intended to boost energy efficiency and reduce operating costs. It was credited by the city’s former planning director Larry Beasley as being an innovative approach to development in the downtown core. The kudos weren’t enough to protect Jameson House from the credit crunch, however, which has also contributed to difficulties financing the equally ambitious projects Millennium Development Group is pursuing in Southeast False Creek and the In Young Group’s five-tower Infinity project in Surrey. Dean Schwanke, senior vice-president of the Washington, D.C.-based Urban Land Institute, recently told the local real estate community that commercial properties will be the next sector hit by fallout from the crisis in international credit markets. “Real estate depends on debt, and there’s just no debt out there,” Schwanke said in an often blunt summary of market conditions.

“Forget the quick fix. This is the worst period since 1991-1992.” While commercial properties may have been looking good a few months ago, Schwanke expects the tourniquet on lending is choking business growth and will soon boost office vacancies. That will reduce building owners’ income and throw office property returns into the red. Jameson is the first major downturn casualty. While major office towers by the Holborn Group, Bentall Real Estate Services LP and the Aquilini Group remain on hold pending a better leasing environment, half the 55,000 square feet of office space in Jameson House sold (for 18 million). The remaining half hadn’t yet found a buyer, and current market conditions promise to make a sale more difficult. “While the market has been really, really tight to date, I think everyone’s expecting that to change with the decline in the economy,” said Tsur Somerville, director of the UBC Centre for Urban Economics and Real Estate. “The part of the market that was most under pressure [for space] on the office side is not the side that they’re catering to. And I can’t imagine anybody’s going to keep on expanding space in the current market.
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  #182  
Old Posted Nov 25, 2008, 10:37 PM
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Edit - whoops kinda slow today.

Last edited by phesto; Nov 25, 2008 at 10:47 PM.
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  #183  
Old Posted Nov 26, 2008, 2:52 PM
rather_draconian rather_draconian is offline
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So sad. Mainly about the loss of office space and something that stands out from everything else in the skyline.
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  #184  
Old Posted Dec 14, 2008, 2:00 AM
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this is probably the nicest building in the city, too bad it faces hell right now.
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  #185  
Old Posted Dec 17, 2008, 8:23 PM
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Was at an office that overlooks the site this morning - pics by me:





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  #186  
Old Posted Dec 18, 2008, 4:27 PM
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So the crane at the site is still up? Is there any chance that this building will be resurrected?
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  #187  
Old Posted Dec 18, 2008, 4:50 PM
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I don't think there's much of a chance of this building being ressurected.
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  #188  
Old Posted Dec 18, 2008, 4:57 PM
phesto phesto is offline
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^The project isn’t all dead, just mostly dead.

A firm has been retained to source financing to finish the project and some of those involved seem optimistic that this could happen in early 2009. The major issue for a potential lender will likely be the level of sales, but as a positive, there may be come cost savings on the construction side now.

There should be an update one way or the other in the first half of 09. I'd give it about a 20% chance right now...

btw, this project has basically finished Jameson (Pappajohn) as a developer.
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  #189  
Old Posted Dec 18, 2008, 5:09 PM
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Thanks for the info Phesto. Although the odds are stacked up against it it's good to know there is at least some hope.
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  #190  
Old Posted Dec 18, 2008, 7:55 PM
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Quote:
Originally Posted by phesto View Post
btw, this project has basically finished Jameson (Pappajohn) as a developer.
it's a tough racket, but it sure does make me feel bad to see a guy get wiped out in a single project by forces outside of his control. especially when his project was so ambitious and interesting.
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  #191  
Old Posted Jan 3, 2009, 4:21 AM
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any news here? Concord still interested in picking it up?
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  #192  
Old Posted Jan 3, 2009, 8:26 AM
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aaah! this is one of the best new buildings planned, it better go through!
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  #193  
Old Posted Jan 3, 2009, 4:40 PM
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Forces outside of his control?

Quote:
Originally Posted by flight_from_kamakura View Post
it's a tough racket, but it sure does make me feel bad to see a guy get wiped out in a single project by forces outside of his control. especially when his project was so ambitious and interesting.
I also want to see this thing get built, but the developer took way too much risk by buying and building right at the top of a once-in-a-lifetime easy credit fueled speculative real estate bubble. If I were a lending institution, I wouldn't lend any developer in Vancouver money for a long time. I think that the real estate market here should bottom by around 2015 at least.

Before you start heaving invective at me, please understand that I'm an optimist by nature, so I prefer to look at the real estate market from a "glass half-full" perspective.
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  #194  
Old Posted Jan 3, 2009, 6:21 PM
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this is a nice tower that should be erected. bubble or not it was giving this city some hope.
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  #195  
Old Posted Jan 3, 2009, 8:08 PM
phesto phesto is offline
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Originally Posted by hollywoodnorth View Post
any news here? Concord still interested in picking it up?
Haven't heard anything, but December was very quiet for lenders. This project will likely go one way or the other in the first half of 2009.
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  #196  
Old Posted Jan 16, 2009, 4:24 PM
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Economic woes leave historic building hanging - literally


By John Mackie, Vancouver SunJanuary 16,

VANCOUVER - For many Vancouverites, the symbol of the Great Depression was the Hotel Vancouver. Construction on the hotel began in 1928, but was stopped in 1930, and the building wasn’t finished until 1939. Which means the shell of the building loomed over downtown for a decade before it finally opened, a highly visible reminder of the world economic collapse.

Some might think the symbol for the current economic downtown would be the Olympic Athletes’ Village, which is mired in financing problems. But a more apt symbol might be the Ceperley Rounsfell building, a handsome two-storey structure at 848 West Hastings, which is suspended in mid-air.

Literally.

The 1921 building was supposed to be restored as part of the Jameson House development, a cutting-edge condo/office tower that seemed to have everything going for it: a great downtown location, striking architecture by the world-famous Norman Foster and a much-praised “green” design.

In November the financing fell through for the $180-million project, which is now in limbo. But construction had already started for the 37-storey tower with a 21-metre deep pit for the building’s foundation and parking garage.

To keep the Ceperley Rounsfell building from falling into the pit, it was enveloped in a $2-million steel truss. This was supposed to be temporary, but could stay indefinitely while the developer (Jameson Holdings) tries to line up new financing for the project.

Hence you have one of the most bizarre construction sights in an era of bizarre construction sites: an old building hanging six storeys in the air.

“It can stay like that for many, many years, it’s not going to deteriorate,” said Bruce Simmonds, an engineer with LNS Services, which built the truss.

“It’s a pretty massive structure that’s there. It has no corrosion protection on it, so the only thing that would eventually take it is if the beams were to severely corrode. But that would take 10, 20 years before something like that would even be significant. So it could stay there, there’s nothing unsafe about it.”

The 40-metre long, eight-metre high, nine-metre wide, 70,000-kilo truss was put up on Nov. 17, 2007.

It was a complicated affair.

“We drove 70-foot [21 metre] deep pipe caissons [a retaining, watertight structure] into the sidewalk and into the back lane, and they were concrete filled,” Simmonds relates.

“Then we put a steel truss over the top of the building. Hangers, so to speak, come down on [the east] side of the building. The [west] side of the building is tight to the adjacent building, so we had to go through the [adjacent] building with those hangers.

“Then there are large needle beams underneath the foundation. When the building was just sitting there and there was no excavation, we had to dig slots underneath the building, put the needle beams in, erect the truss over the top and put the hangers down.”

The building and steel truss are also hooked up to hydraulic jacks.

“To ensure nothing moved, the hydraulic jacks are on a self-levelling system, such that each jack would take its appropriate amount of weight to keep the building level,” said Simmonds.

The 1,200-tonne building has no floor, which was taken out so that the steel needle beams could be attached. Which makes it look all the more unusual.

Why go to all the bother? Because the Ceperley Rounsfell building has Heritage A status, the city’s highest ranking. It is one of the only examples of what a city report dubs “Regency Georgian Revival architecture” left in Vancouver.

It has a gorgeous interior with a double height ceiling, elaborate plasterwork and a skylight. It was built by Vancouver pioneer Henry Ceperley, a major player in real estate from the 1880s to the 1920s. (Ceperley Park is named after him.) It had been a mining museum in recent years.

The facade of another heritage building at 840 West Hastings was also to be retained and partly rebuilt in the Jameson House development. Another old building which housed the Jolly Taxpayer Pub was torn down.

The developer was given a heritage density transfer to help pay for the restoration costs, which were estimated at $7,934,000 in 2005. They also purchased another $5 million in heritage density transfers off the Yip Sang building, the oldest building in Chinatown. The Yip Sang building is being restored by realtor Bob Rennie, who was marketing the Jameson House development.

The density transfers meant Jameson Development was able to add several storeys to the Jameson House building. The plan was to have retail and offices on the bottom of the building, then 144 condos from floors 14 to 37. More than 100 condos had been sold when the financing fell through.

The tower was designed to LEED (Leadership in Energy and Environmental Design) gold standards, the benchmark for green buildings. It was supposed to generate some of its own power, and have a water recycling system. The aerodynamic shape of the building took advantage of the wind for ventilation, and was angled to get the maximum heat and cooling from the sun and shade.

But whether it will ever be built, and what will happen to the Ceperley Rounsfell building, is up in the air.

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  #197  
Old Posted Jan 16, 2009, 4:31 PM
rather_draconian rather_draconian is offline
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That article was very well written. I wish it had a picture showing this "old building hanging six storeys in the air" though!

The Jameson is such a good project...c'mon Concord Pacific, I am sure that if you invest in completing this project it will be better than anything you could pull out of your own ass. *cough* Colours...ugh.
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  #198  
Old Posted Feb 20, 2009, 2:44 AM
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any updates?
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  #199  
Old Posted Feb 20, 2009, 2:52 AM
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Originally Posted by phesto View Post
[SIZE="5"]

“To ensure nothing moved, the hydraulic jacks are on a self-levelling system, such that each jack would take its appropriate amount of weight to keep the building level,” said Simmonds.
Construction/Buildings is/are pretty cool, in case any of you forget why we're all here.
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  #200  
Old Posted Feb 20, 2009, 3:50 AM
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The crane moved two days last week. I walked by but couldn't see anything different and no one on the site. Rumour has it that it's not dead just hibernating. We'll see as Spring isn't that far away.
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