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I am more likely to believe that the repaint is an attempt to attract residents than to appease the neighbors.
Overall, the building isn't so hideous anymore. However, the quality of the paint job is horrible. They didn't put enough coats on to cover up the previous obnoxious colors. There are several spots that they missed entirely. Also, there is overspray in several spots.
And the building does look completely vacant. At night time the other night, there wasn't a single light on in the building.