Updated 3/14 8.30a: To include comments offered by representative of the Loop Calhoun.
From more than one reliable source, we have it that the Loop Calhoun condo project is in Foreclosure. The foreclosing construction lender is M & I Bank, allegedly defaulting party is Mathwig Development.
Again, this is to be filed in the semi-substantiated rumor mill – anyone with more details feel free to share in the comments.
Now, just because a condo project is in foreclosure does not mean it is dead – in many cases the lender simply takes over the development, and continues to market the properties – In for a dime, in for a dollar as they say. Sometimes a bank starts by replacing the sales team and other key players, but there are dozens of ways this can play out,
and we don’t have nearly enough information to make any representations as to exactly how this will unfold. See update below.
Now, in some cases, projects in foreclosure might represent an opportunity to get a better deal on a purchase –
whether that is true here is another matter entirely. Again, see update below.
UPDATE 3/14 8:30 AM: Late yesterday, we were contacted by a representative of the Loop Calhoun Project who offered up some details. Though they declined to be named or quoted, but we can confirm that they are closely affiliated with the project at a very high level. So here’s the scoop:
- That the Loop Calhoun is in Foreclosure, and that event occured last Friday.
- The foreclosure itself was characterized as an administrative action to expedite the clearing of disputed mechanics liens on the project resulting from the ouster of the original General Contractor.
- That it is business as usual at the Loop – no changes to management, the sales team, etc. are in the works.
- The bank is happy, they are happy, and it is business-as-usual down there, and sales are relatively strong. In other words, if you are a vulture, don’t plan on having Loop Calhoun as a carcass to pick on – they aren’t conceding dollar one on price.
Feel free to share any details in the comments or via email, but be careful – these are peoples businesses and livelihoods we are talking about, so any comments that smack of axe-grinding, piling on, etc. won’t be tolerated, but if you have verifiable information to share, please do so.