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Channelside Condos In Chapter 11
Peter Masa/News Channel 8
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Published: January 26, 2008
TAMPA - The developers of the Towers of Channelside, a pair of 29-story luxury condominiums, filed for bankruptcy court protection Friday, stating that Wachovia Corp. cut off its credit.
The developer has sold just 89 of the 257 units, according to documents filed in U.S. Bankruptcy Court in Tampa on Friday. Many of the contracts on units that have not closed fell through because buyers backed out, documents said.
Two partners in the development did not return calls seeking comment.
The company, Towers of Channelside LLC, based in Plant City, listed debt between $50 million and $100 million and assets of between $100 million and $500 million, in Chapter 11 documents.
"Wachovia has refused to allow the debtor to draw the remaining amounts available under the Wachovia loan," the company said in court papers. Wachovia is owed about $58 million, according to court documents.
The 20 largest unsecured creditors are owed $11.6 million. Of those, the three biggest are CT Towers LLC, owed $6.2 million; Batson-Cook Co., owed $3 million; and Kevin Brodsky, owed $1.2 million.
If all buyers with contracts had closed, all creditors would have been paid, the developer said in its filing.
Tampa Realtor Toni Everett said she wasn't surprised by the news and had heard that some buyers weren't able to close.
Everett said she is representing some clients who bought units and are now trying to sell. She said she had been inside of one of the towers Friday morning and that most of the units seemed complete. She said she thought the developers were just putting finishing touches on some units, such as paint.
At the peak of the housing boom, more than two dozen condominiums were planned for in and around downtown Tampa. A handful of the condos have opened and some other developers have either stalled or canceled projects.
Everett said she had been concerned about the flood of condo developments in the Channel District and wondered whether there would be enough buyers to fill the units. Condos that she's selling in other areas of downtown are doing better, she said.
"I've been through other downturns," she said. "This is my fourth downturn. I saw what was going to happen down there."
Information from Bloomberg News was used in this report. Reporter Shannon Behnken can be reached at sbehnken@tampatrib.com or (813) 259-7804.
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Reader Comments
Posted by ( Been_There_Done_That ) on January 26, 2008 at 10:40 a.m. ( Suggest removal )
Sure wouldn't want to live there. That whole downtown area is a blight.
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Posted by ( GF ) on January 26, 2008 at 3:43 p.m. ( Suggest removal )
And they are still building them.
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Posted by ( IREADER ) on January 26, 2008 at 7:29 p.m. ( Suggest removal )
I must disagree, respectfully, with clockradio.
Tampa is not alone in downtown bankruptcies across America. Even Orlando has seen downtown trouble.
Condos are a type of home. This is a bad time in America for home sales.
Suburban sprawl has been the trend in America. Not downtown homesteading. Yes, some large cities have residential concentrations downtown. However, those cities are in the minority as far as the American trend has been.
My main concern for downtown Tampa is that too many condos have been built. The expectations were over estimated. However, I believe Tampa will continue to be a viable city in America.
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Posted by ( 5thGenTampaBay ) on January 26, 2008 at 8:20 p.m. ( Suggest removal )
don't understand how it is in wachovia's best interest to cut them off if it is just a matter of selling the units. sounds like they are "completely built".
ah, whatever, it's all a matter of time until those are filled and more are built.
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Posted by ( sevenoaksman ) on January 26, 2008 at 8:45 p.m. ( Suggest removal )
Yup, I was trying to buy a unit there back in April 05 and let me tell you, that realtor Everett was too busy to call me back. After a couple calls, she had one of her receptionist called me back and I was told to put up 10% to be on the waiting list. That was almost $50K. I almost choked when I heard that. Then she went on to inform me that the price could change anytime. My deposit was just to get on the waiting list. If and when I get to go to contract, the price could be a lot more. I am amazed at how that Everett company can still exist. I did not buy and thanks God. :)) Thank you Toni for treating me badly and saved me a bundle
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Posted by ( JackNelsonSteward ) on January 26, 2008 at 9:20 p.m. ( Suggest removal )
This is a fine advertisement for those two towers they want to build in Hyde Park, ain't it?
Let's revitalize OHPV with some excess condos that no one wants and we can build some more retail no one will use.
Should we start tomorrow?!
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Posted by ( Oops ) on January 26, 2008 at 10:51 p.m. ( Suggest removal )
I can't wait for the demolition implosion! Dibs on front row seat...
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Posted by ( dzeien ) on January 27, 2008 at 5:59 a.m.
(This comment was removed by the site staff.)
Posted by ( Wooly ) on January 27, 2008 at 7:50 a.m. ( Suggest removal )
Very soon it is time to buy. The condos will fill up. Downtown will boom.
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Posted by ( DrFill ) on January 27, 2008 at 9:01 a.m. ( Suggest removal )
The whole real estate market is a mess right now but if history repeats itself and it always does, this project as well as others will come back stronger than ever. Tampa is working hard to make this area its shining star. This project, with its resort pool is amazing. hopefully some investment group will see the potential and see it through!
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Posted by ( DowntownOptimist ) on January 28, 2008 at 3:35 p.m. ( Suggest removal )
Downtown & Channelside will come around soon enough. It is a tough time in the real estate market everywhere and Tampa is doing surprisingly well compared to its competition. The 2 projects that are in my opinion the best in downtown are SkyPoint & the Towers of Channelside. They both have a number of residents that are living there and enjoying every minute of it. The key is, buy in while the prices are low and as (DrFill) mentioned, history will repeat itself as it always does and come back stronger than ever. By then the prices will be much higher and you will be happy to have the equity in your home a few years later. It’s all just a matter of time until these projects will be full.
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Posted by ( JBeLLibew915 ) on February 3, 2008 at 11:05 a.m. ( Suggest removal )
I work construction, i worked there for almost 2 years. I wouldn't take one if they were giving them away. Not only were they slammed together. there is very poor craftmanship involved. And when there is a cruiseship in port it smells like deisel burning all day and it blows right into the building.
another word... "mold".
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