A rising number of condo complexes are entering foreclosure property listing or getting bankruptcy protection in Charlotte in the first months of 2010, based on court filings in North Carolina.
Among these troubled condo properties is the French Renaissance-styled 134-unit Rosewood Condominiums, which aimed to surpass all other luxury projects in the city by including unique amenities such as massage rooms, tennis courts, conference rooms, a coffee bar, a fitness complex, a putting green, a garden, a club and a concierge service.
Each unit features ten-foot ceilings, natural-stone tiles, hardwood floors and a rotunda-style anteroom. The three towers are also linked to a two-story atrium that serves as the main hub of the luxury complex.
The units were offered for sale in the price range of $400,000 to over $1 million. However, the developer, WCDM Development led by Jerry Stephens, failed to pay its over $21.5 million loan balance and its 2009 real estate taxes, so lender Regions Bank filed foreclosure documents in January this year. WCDM borrowed $72.6 million in April 2006 to build Rosewood.
In response to the foreclosure filing, Rosewood, to rescue the project, filed papers for bankruptcy protection under Chapter 11. It is required to submit a corporate reorganization plan by June 11.
According to lawyer David Powell, the eight condo unit buyers who had paid a total deposit of over $1 million will likely retain their rights to buy their units, unlike buyers of other condo units in unfinished projects that have entered foreclosure property listing. Because the development of Rosewood has been completed, both the lender and the developer benefit if the units are sold, Powell explained.
In unfinished condo projects like the 210 Trade and The Park, a lot of buyers lost their deposits totaling millions of dollars because the projects were not completed and were ultimately abandoned and the developers can no longer repay the deposits they already spent on the projects.
Rosewood was built at a total cost of about $70 million during the boom years from 2005 to 2007. It was listed as the 19th biggest construction project in Charlotte at the time.
Another unfinished condo project in Charlotte is the Glenmore Garden Condos in the southern part of Charlotte. It was however saved from a possible foreclosure property listing by a property investment firm, which purchased the project for almost $4 million and planned to build single-family dwellings priced in the $200,000 range.
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