Sulja Bros. Building Supplies, Ltd (SLJB)

[PinkZombie]

I didn't know that Andrew was invloved from the very beginning!! I thought Andrew only got involved when Peter entered the scene. Apparently not.

http://www.cpnonline.com/multihousing/reports_analysis/feature_display.jsp?vnu_content_id=1001021946

Urban Infill
Loftwerks Goes Public To Fuel Expansion

By Angela C. Allen, Associate Editor

SEPTEMBER 01, 2005 -- Nashville—An ambitious developer who jumpstarted his career by renovating historic buildings in Detroit has decided the time is right to take his urban-infill company public— betting that Wall Street investors will share his belief that the future is bright for owners of multifamily locations in downtown settings.

Dennis Ammerman, founder and CEO of 10-year old Loftwerks Inc., said he's offering stock in his company to public investors to raise capital and to "get a broader base for expanding the company."

"It gives us more options," said Ammerman of the IPO, completed in June. "We're excited to enter the public arena as a means to raise awareness about our projects and increase Loftwerks' capitalization options. The ever-increasing market for urban lofts is so compelling, we simply couldn't refuse the benefits of a public-market vehicle—and the sometimes trying process now appears to be worth the effort."

The company recently relocated from Detroit to the capital of country music where work is already underway on its next project: The Ambrose Building, a century-old landmark on Fourth Ave. in the heart of downtown Nashville.

The proceeds from the IPO will help fuel Loftwerks further expansion plans: Ammerman said the company plans to explore opportunities in other Southern markets, namely Chattanooga, Tenn.; Charlotte, N. C.; Lexington and Louisville, Ky.; and Birmingham, Ala. among others.

He added that the company has future plans to expand its brand into a line of furniture and is exploring an urban-lifestyle TV show.

Andrew DeVries, company director and chief consultant for the IPO, said the future for the newly public Loftwerks looks solid as the company's track record and a trend toward regentrification in urban areas will draw investors.

"There's a ground swell in the whole country for urban renewal," said DeVries.

"Our strategy is very sound," added Ammerman.

As of mid-August, Loftwerks (OTC: LFWK) was trading at 23 cents a share (with a 20-cent 52-week low and a 40-cent high). Trading in the stock was small, with an average daily volume of 17,100 shares trading hands.

Loft-y Strategy

So what is the company's recipe for urban-infill success?

During the last decade, Loftwerks has made a name for itself in Detroit, acquiring undervalued and aging buildings in distressed urban markets and transforming them into elegant, high-end residences with lasting value.

Ammerman said he looks for pre-War buildings that are "structurally sound with historic character" constructed in the early 1900s to 1940s.

"We like to go in and buy those buildings before everybody wakes up so we're ahead of the curve," he said. "We might buy it at $4 or $5 a square foot and later [after his development draws others into the neighborhood,] nearby properties might command $40 to $50 a square foot."

Ammerman said part of his winning formula includes leaving in rich architectural details such as the exposed brick, steel and masonry that distinguish historic structures.


Nifty Nashville Project

Loftwerks acquired The Ambrose Building in Nashville for just over $2 million dollars and is spending approximately $3 million to convert the building to luxury loft-style condos.

Ammerman and Loftwerks board member Charles Loveman, a former Los Angeles city planner, will spearhead the project along with Nashville-based building owners, Ambrose Associates.

Architect Eric Powers of Innovations Group and architect Rob Cochran will jointly work on the project. Cochran and Powers plan to try and retain as much of the buildings' turn-of-the-century flavor as possible while adding modern conveniences and renovations.

"The challenge is taking a building over 100 years old and turning it into something appealing and functional to the level of efficiency demanded by 21st century usage, while simultaneously preserving the historic integrity and cultural influences of the building's origin," noted Cochran.

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Thoughts anyone?