www.truonge.com/2007-01-7.aspx -
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Published on: 1/7/2007
Last Visited: 9/7/2008
A year ago, developers John Judge and Tom Truong arrived at the edges of a still solid real estate market with a lofty goal to go along with their plan to make money.
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Now, 13 months later Judge and Truong have built just four condos, with only two of those units under agreement.
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The sales are expected to be finalized next month, said Truong, who did not disclose terms.
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"The market did not hold up, " said Truong."We're being prudent businessmen."
In Chelsea, though, the rebirth of beloved church properties was closely watched.The seven buildings are located on three parcels downtown.
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And Judge and Truong seemed to have a combination of experiences that would help fulfill th e goals.
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Judge and Truong said they originally planned to invest $8 million to $10 million to redevelop the buildings, some of which are more than 100 years old.
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"We have more money than we need," said Truong, who handles financing for the pair."We give people a decent return on their money, better than Wall Street."
But not too far along they showed signs of buyers' remorse -- and got a taste of the difficulties ahead.Last August, with permits in hand for three buildings, they put all seven properties up for auction.While the listings and an open house at the St. Rose convent attracted much interest, the pair ultimately decided not to accept any of the offers because they were too low, Truong said.
"We tested the market," he said.
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The St. Stanislaus convent and school fetched close to the $1.6 million asking price, Truong said.
The St. Rose convent, permitted for 16 condo units, is for sale.Truong isn't saying how much he's asking , but he says the old convent, with a big courtyard at its center, could be right for someone willing to bet on Chelsea long term.
"I really believe that, in 10 years, Chelsea is going to be the place to live," said Truong, who is 39.
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Meanwhile, Judge and Truong are trying to sell the last property -- the St. Rose convent -- and Truong implied if it doesn't sell by next month, they will have to rethink their options.
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"Everything depends on the economy," Truong said.