Foutch Brothers LLC, the historic redevelopment firm preparing to tackle the repurposing of Kemper Arena, plans to make a nearly $23 million apartment splash in the East Crossroads.
On Wednesday, the firm is scheduled to appear before the Land Clearance for Redevelopment Authority to request a property tax abatement for the 104-unit project. It calls for the addition of three stories to the Holtman Building, a two-story, 39,000-square-foot building constructed at 708 E. 18th St. in 1918. In addition, Foutch Brothers is planning to construct a new six-story building in place of the parking lot across the street at 701 E. 18th St.
Plans call for 80 one-bedroom units; six two-bedroom, one-bath units; and 18 two-bedroom, two-bath units in the two buildings, which together will be branded as Holtman Heights. The average monthly rent for the market-rate units is expected to average $1.47 a square foot.
The existing two stories of office and warehouse space in the Holtman Building are to be redeveloped for residential use. However, the developers are planning to include 3,366 square feet of commercial space on the ground floor of the new building.
A total of 68 parking spaces are proposed for the project, with some in the basement of the the Holtman Building and the remainder on the ground-floor of the new building.
Foutch Brothers, which has the Holtman Building and adjacent parking lot under contract for $2 million, indicated that it selected the East Crossroads site because it was the best-priced real estate in the area where they were looking to develop.
But the site’s location in an area with unproven rents is driving the need for public assistance, the developers advised the PIEA.
Foutch Brothers requested that the LCRA grant a 10-year, 100 percent abatement for the project. Based on a financial analysis of the project by SB Friedman Development Advisors, however, LCRA staff is recommending five years of 100 percent abatement, followed by five years of 50 percent abatement.
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