Construction firm Katerra’s bankruptcy filing won’t stall apartment projects
Photos by Jonathan Spiers)
Two apartment developments on opposite sides of the river will remain active and on schedule despite their general contractor’s recent bankruptcy filing, the developer behind those projects said this week.
Tennessee-based Bristol Development Group said it is continuing on with its Artistry at Winterfield and Tapestry West apartments amid the Chapter 11 filing from Katerra, the construction company it enlisted for both Richmond-area projects.
California-based Katerra made the filing Sunday after it was unable to procure bonding for projects following the insolvency proceedings of former lender Greensill Capital, according to media reports. A statement on Katerra’s website also attributed the filing to industry impacts from the pandemic and unsuccessful attempts to secure additional capital.
The Richmond-based missionary group is seeking a permit for two five-story buildings that would fill a surface parking lot and replace an office building.
Henrico apartment complex sells for $35M via endangered 1031 exchange
Jonathan Spiers photos)
While the fate of its business model hangs in the balance of a proposed federal cut to so-called 1031 exchanges, an area real estate firm with a taste for such deals is keeping them coming in the meantime.
Capital Square, which built its business on the investment property swaps allowed under Section 1031 of the U.S. Internal Revenue Code, recently unloaded a batch of apartments from its portfolio using a 1031 exchange, through which investors can defer payments of capital gains taxes from one investment property to another.
The firm last month sold the Maple Springs Apartments at 5624 Maple Run Lane, a 268-unit complex across Hungary Spring Road from Hermitage High School in Henrico. The 1980s-era property, which has 23 two-story buildings across 18 acres, went for $34.8 million in a deal that closed April 14.
Richmond School Attendance Improved, but Concerns Remain
School board members heard a presentation on student attendance data during a Tuesday meeting. (Source: Screenshot from Facebook)
The Richmond School Board reviewed updated attendance rates during a meeting last night. While rates have improved from earlier in the virtual school year, the board voiced disappointment and confusion.
Harry Hughes, RPS Chief Schools Officer, presented the attendance data for the first half of the 2020-2021 school year.
As of the 20th day of classes, in October, 21.2% of RPS students were on track to become chronically absent. That number has slightly decreased to 17.4% as of the 90th day of school this year. The current chronic absenteeism rate is about the same as this time last year, which was 16.9%.