An Indian entrepreneur with a doctorate in business administration is venturing where two other real estate developers failed.
Ganesan Visvabharathy (”Just call me Dr. Vish”), president of Vilas Development Corp. of River Forest, last year acquired unfinished portions of Heiden Gardens, a 22-acre, $9.5 million planned unit development in north suburban Lake Bluff that was started in 1971 but never completed.
The original plan called for 322 condominium units in seven four-story buildings served by a 5,000-square-foot clubhouse with swimming pool and putting green.
Heiden Gardens Inc. was a partnership of David Parker, Michael Avis and architect Charles Franklin, whose building designs resemble Bavarian chalets. In addition to the clubhouse, two 46-unit buildings had been completed and sold out by 1975 with the partnership adopting a policy of ”build as we sell.”
The third four-story building, however, was left unfinished other than the exterior shell, and another developer later failed to revive Heiden Gardens, a victim of the slump in the real estate market.
The third building shell and undeveloped portions of the site languished until 1990, when Visvabharathy bought the unfinished structure and 10 acres from the Resolution Trust Corp.
”The project failed because of faulty pricing, mismanagement and excessively high assessments,” he said. ”The basic building, however, is of excellent quality and built like a fort. And such open space with a man-made lake cannot be duplicated economically in today`s market.”
This year Heiden Gardens was renamed Whispering Lake and the unfinished building, The Pines, completed with 41 one-, two- and three-bedroom condominiums ranging from 934 to 1,900 square feet and priced from $69,900 to $121,900. Monthly assessments are $80, down from a previous $200 a month.
Also under way is a $250,000 renovation of the pool, putting green and clubhouse with sauna, whirlpool, exercise room, kitchen and a great room that has a 25-foot vaulted ceiling, bar and boulder fireplace.
Construction is to begin in June on 89 two-story townhouses of 1,256 to 1,615 square feet for two and three bedrooms plus loft area. Prices ranging from $109,900 to $129,900 will include family room, formal dining room, kitchen appliances, full-size washer and dryer, basement and attached garage. Pre-construction sales began this week.
When condominium sales were ready to begin last month, Visvabharathy reached back to the past for a manager who could give Whispering Lake ”a new lease for success.”
His choice was Florence Jacobs, a veteran in real estate sales whose first job, in 1971, was managing pre-construction sales for the original Heiden Gardens.
”I worked out of two model units in the clubhouse and sold all my units from blueprints before any construction,” she recalled. ”The first time I saw the finished buildings was last month. However, I`ve encountered original buyers who still remember me, so it`s been like a reunion.”
Jacobs said her original enthusiasm for the condominiums has been reinforced by the ”quality, taste and economics imposed by Dr. Vish.”
In addition to four two-bedroom, two-bath plans, The Pines has two three- bedroom duplex units and corner units with fireplace. All units have gas heat, central air conditioning, balcony and space in the heated indoor garage on the ground floor, which also has secure storage lockers and a bike room. A buzzer entry system controls the main lobby.
”Although we`ve been selling for only a few weeks, interest has been high and we have reservations for nearly half the condo units,” Jacobs said. ”Our buyers seem concentrated among North Shore empty nesters as well as singles and young couples who work for the nearby Abbott Laboratories corporate center.”
She said the project`s chief selling point, other than affordable prices, is atmosphere.
”Everyone who lives and buys here is attracted to a convenient location secluded from traffic, noise and congestion,” she said.
The Pines is at 12900 Heiden Circle across from Abbott Park near the intersection of Illinois Highways 43 (Waukegan Road) and 137 (Buckley Road).
Whispering Lake is representative of projects undertaken by Visvabharathy since 1988, when he abandoned university teaching to devote himself full time to buying and reviving troubled properties.
After earning a bachelor`s degree in engineering from the University of Madras in India, Visvabharathy came to the U.S. and earned his master`s and doctorate in business administration from the University of Illinois.
He began his real estate rehab career with a single-family home in Minneapolis and a condo in Hawaii while serving as professor of marketing at the University of Minnesota. While professor of marketing at Northern Illinois University, he launched Vilas Development Corp. and began in earnest to find ways ”to make ownership cheaper than paying rent.”
”Affordable starter homes are in tremendous demand, and this is my focus,” he said. ”The key is to make ownership more affordable than rent based on net income so any tax benefits then become an added bonus to the buyer.”
He achieves this by efficiently revamping and managing distressed projects that he can afford to resell at below-market prices with minimum down payments.
”We`ve demonstrated how to buy low and create a quality product that can compete with rent,” he said, citing three suburban developments his firm has acquired since 1989.
– The Federal Savings and Loan Insurance Corp. (FSLIC) in 1989 sold Vilas Development 123 of 144 units at Terrace Condos in west suburban Forest Park.
”The project had every negative you could think of, but we overcame all of them and eventually acquired FHA approval,” Visvabharathy said. His improvements included conversion from all-electric to gas, renovation of the building exterior and common areas, a new entry, a new maintenance staff and strengthened maintenance procedures that reduced average assessments from $110 monthly to $50.
Terrace Condos sold out in December, 1990.
– The former Cove Condominiums, 1557 W. Irving Park Rd., Itasca, was a conversion from rental to condo that failed. In 1990 Visvabharathy acquired 106 of 230 units and renamed the project Medinah Terrace.
”The project had inadequate financing, high interest rates and monthly assessments that were too high,” he said. ”My engineering background is helpful in structural analysis and maintenance procedures. We reduced the assessment by one-third and got FHA approval to make ownership affordable.”
The fully rehabbed one- and two-bedroom condos have new kitchens, baths, carpet and decorating and are priced from $44,000 to $89,900 with an average $60 monthly assessment. The complex includes two swimming pools, two tennis courts and 15 acres of landscaped grounds.
”Demand has exceeded even my own expectations,” he said. ”Sales opened in April and we already have 39 contracts.”
– Early in 1991 Visvabharathy bought 255 of 318 condominium units at Raintree, a 25-acre development adjacent to Village Links Golf Course in west suburban Glen Ellyn. The project includes a clubhouse, four swimming pools, four tennis courts and a pond.
Model units are now being completed for the fully rehabbed one-, two- and three-bedroom units priced from $63,000 to $110,000 with monthly assessments of $95 to $120.
”This is more work than a raw development, but I like it,”
Visvabharathy said. ”I create dreams in development and show people how they can live at an affordable price.”
