Towers of Channelside-Bankruptcy Update-Tampa, Fl

Towers of Channelside announced in the Tampa MLS condo listings that "DEVELOPER EMERGES FROM CHAPTER 11 ON OCTOBER 1. CHECK OUT LATEST DISCOUNTED PRICES."


I emailed my friend Michael at the Tampa Bay Business Journal to see if he had heard of anything regarding the bankruptcy. He says "It's on the front page of our website today"! Ok, so I'm a Realtor, not a journalist, but I do try and get the scoop on the Tampa Real Estate Market!

Here's the latest good news for The Towers of Channelside




Towers of Channelside emerges from bankruptcy
Tampa Bay Business Journal - by Michael Hinman

It looks like at least one high-profile condominium project in the Channel District will have a fighting chance to weather the housing market bust.

The Towers of Channelside LLC emerged from Chapter 11 bankruptcy protection Wednesday evening with a new plan to pay back creditors over a five-year period and, its principals believe, the momentum to sell the remaining 150 units of its twin 29-story towers.

“We’re officially out,” said Richard Sacchi, one of the development partners for the project that was completed last year only to find that many of the potential buyers that placed deposits for units were not closing.

It was a problem afflicting a number of condominium projects across the Tampa Bay area, and eventually forced Towers of Channelside to reorganize and seek protection from its creditors last January when Wachovia Bank threatened to default on its $105.8 million loan used for construction.

That started a string of bankruptcy and foreclosure problems along Channelside Drive that included Key Developers Group LLC, which will auction off The Place at Channelside Oct. 15; Tampa Condo 2 LLC filing for Chapter 11 protection in March after failing to build its 51-story The Tampa Tower 2; and last May when Ventana Tampa LLC decided to give its 84-unit complex on Kennedy Boulevard and Channelside Drive back to the bank in lieu of $16.8 million still owed to Mercantile Bank.

But Towers of Channelside can now remove the bankruptcy clouds that have hovered over the project for the last 10 months, Sacchi, said.
“We were just better situated than these other projects, and we were driven to try and make it work,” he said. “The easier thing would’ve been to walk away, but we wanted to make it work and try and get everybody paid back. We’ll continue to stay involved and continue to sell units.”
Chasing away the cloud

When Towers of Channelside filed for bankruptcy protection, developers had sold 89 units, and had eight more that were just about ready to close. Even with the project in bankruptcy court, Sacchi said Towers of Channelside closed 16 units since March, and he believes those numbers could rise now that buyers don’t have to be concerned about what the bank will do about the money developers owe.

“It hasn’t been an issue to the people who have come in to buy units, but maybe being in Chapter 11 and the threat of foreclosure didn’t bring buyers to the property,” Sacchi said. “Now that they know we won’t be going to foreclosure, maybe some of those who shied away will come back.”

The biggest issue facing buyers right now is the lack of funding for home purchases – especially condominiums – coming from banks. Developers can’t control that, but a five-year window to repay its debts will at least give the market time to readjust, Sacchi said.

Buyers also could likely see prices on units drop at much as 15 percent from original pre-construction prices because of the reorganization, and drop that Sacchi said couldn’t come at a more perfect time with the housing market trying to rebound.

Last year, before the bankruptcy filing, Towers of Channelside earned more than $47.4 million in gross revenue from the sale of units, and had a net income of $5.9 million mostly from deposits and interest in escrow accounts, according to court documents. However, 98 percent of that net income was paid to Wachovia, which left $58 million of the developers’ initial loan still due.

The development team included Sacchi, Bradley Hite and Michael McGuinness, each who received compensation of more than $210,000 between July 2005 and June 2007 for their services, legal filings show. In the court-approved bankruptcy plan, however, each of them will receive $72,600 over the next 18 months with incentive compensation capped at $2.1 million total.

see also:
The Place at Channelside in Tampa sells at Auction.....read story




Feel free to email or call us 813-784-7744 with any questions regarding The Towers of Channelside or any other condo developments.


Rae Catanese, PA and Michelle Jordan, PA
Realtors.

Search MLS
Prudential Tropical Realty

Channel District Condo Developer To Turn Units Over To Bank

The Place at Channelside in Tampa sells at Auction.....read story

It's been a long road for those who have purchased condos in Channelside. Since we have been posting articles relating to downtown Tampa; I thought everyone would want to hear what's happening in the Channelside District.

Keep in mind that Downtown Tampa is a different market even though they are very close in proximity. If you haven't read the report on growth and statistics for Downtown Tampa you may read it here.


Channel District Condo Developer To Turn Units Over To Bank
By SHANNON BEHNKEN The Tampa Tribune
Published: June 3, 2008

TAMPA - Facing foreclosure, the developers of the Ventana condominiums in the Channel District have agreed to hand the keys to the project's lender and walk way, according to documents filed in Hillsborough County Circuit Court.

Ventana, completed early last year, has 85 units, but the developer has sold only 41 units, county property records show. None of the six retail condominiums have sold.

Ventana Tampa LLC, a company run by local developer Bill Ware, agreed to turn the building over to Mercantile Bank, according to a partial mortgage release filed in county court May 28. Ventana is located on Kennedy Boulevard at the corner of Channelside Drive.

Court records show that Mercantile loaned the developer $31.8 million to build the condominium. The lender filed a notice to foreclose in March.
Ware did not return a call for comment today.

The developer of Ventana sold 38 units in 2007 for a median sales price of $455,000, and three units in 2008 for a median price of $480,000, county records show.

Ventana is not the only Tampa condominium that is struggling. Three others in the Channel District have filed for bankruptcy reorganization this year. They include:
Towers of Channelside LLC, the builder of Towers of Channelside, filed for bankruptcy protection in January after Wachovia cut off the company's credit.

Key Developers, the developers of The Place at Channelside, filed for Chapter 11 bankruptcy protection in March.

Tampa Condo 2 LLC, the developers of the proposed 472-unit Tampa Condo II, filed to reorganize under bankruptcy in March. The company is a subsidiary of Daytona Beach-based Amon Investments LLC.

The developers of these projects have something else in common: weak sales. The developers have said buyers signed contracts to purchase before the buildings were constructed but some didn't follow through after the real estate market softened.

For questions about investment opportunities for bankrupt developments

in Tampa and Channelside

please contact

Rae Catanese at 813-784-7744

Find this article at: http://www2.tbo.com/content/2008/jun/03/channel-district-condo-developer-turn-units-over-b/

See also
Downtown Tampa Condos and Lofts for sale

Towers of Channelside files for bankruptcy-Tampa, Fl

Towers of Channelside “DEVELOPER EMERGES FROM CHAPTER 11 ON OCT 1st”

read full story..click on link above!!

Towers at Channelside still selling.

The Towers of Channelside in the Channel District near downtown Tampa presold all 257 condominium units, but two-thirds of those buyers didn't follow through with the sale. Now the project developers have filed for bankruptcy protection.

For a current list of condos for sale at the Towers of Channelside please contact us.

Feel free to email or call 813-784-7744
Rae Catanese

Search MLS
Prudential Tropical Realty

See Also:

Channelside Developments in Trouble

Update on the Slade at Channelside-Tampa, Fl

View Virtual Tour

The Slade is now 60% sold in less than one year!

The Groundbreaking celebration will take place next month. Invitation to follow

How did we achieve these numbers in such a challenging market?
Timing, Location, and Value!

Buyers lock in a preconstruction price and close in 2009!

The Slade provides an amazing, all inclusive residence with dazzling amenities at a competitive price point ($300s to $500s).



Please contact Michelle Jordan at 813-695-5677 for more information on reserving your condo at The Slade in Channelside.

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