By Taylor Sisk
CHAPEL HILL â€“ A foreclosure date for the Greenbridge development has again been moved. According to Tim Toben, a partner in the 217,000-square-foot Rosemary Street development, Bank of America sent a note Monday afternoon stating that foreclosure had been postponed until Nov. 7.
The bank originally announced a June 27 foreclosure date, then postponed foreclosure indefinitely. It was announced last week that foreclosure would come on Thursday.
Toben and his partners originally borrowed $43.5 million from Bank of America. Construction overruns and a bad economy led them to request a loan increase, which was approved. But when the overruns continued, the bank requested a $1.6 million equity deposit, which the developers failed to pay. They now owe the bank approximately $30 million.
Toben remains confident that investors can be found.
â€œNegotiations with potential buyers are ongoing,â€ he said by email on Monday. â€œHowever, the bank has required each to sign a nondisclosure agreement. Consequently, the Greenbridge Partners are not privy to those negotiations and have no knowledge of the status of any deal.â€
Chapel Hill Economic Development Director Dwight Bassett said that he and Mayor Mark Kleinschmidt had met in early summer with several individuals interested in making an offer on the property.Â
â€œFrom all indications with those prospects and the developers of the building, we believed at least onewould follow through,â€ Bassett said.Â
â€œIt was my understanding that the first delay in the foreclosure was a sign they were considering an offer.â€
Whether foreclosure arrives or investors are found, Toben has said that current property owners and tenants should be able to stay put.
â€œI would like to convey my deepest gratitude and respect to our tenants who were pioneers,â€ Toben said. â€œThey put their money where their values were during a very difficult economic downturn.â€
Greenbridge houses 97 residential units. Of the 60 units the developers had contracts for in July 2008, 37 closed, eight backed out and 15 remain under contract. With liens on the project, developers have been prevented from selling additional units.
Toben said that while the Greenbridge Partners have lost everything they own, â€œwe are proud of the legacy we leave to Chapel Hill and will continue to work for environmental and social justice during the great transition that so many of us know lies ahead.â€