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Bank takes back Palm Harbor condominium project

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By RAY REYES | The Tampa Tribune

Published: August 12, 2009

Updated: 08/12/2009 04:30 pm

TAMPA - The future is uncertain for another big Tampa Bay area condominium project that was foreclosed on today.

Corus Bank, the lender of the $74.8 million Lansbrook Village Condominiums in Palm Harbor, took back the property today after its Atlanta-based developer defaulted on payments, according to online Pinellas County court records.

Condo owner Desmond Fowles said it's a good sign the bank reclaimed the 509 units because the developer had failed to give the condominium owners association's board recent financial reports.

"We feel it's a little positive," he said. "The bank is subject to more scrutiny than the developer."

Developer Vista Properties also didn't replenish the board's reserves of $4 million.

"The condos are 10 years old," said Fowles, who was at the Pinellas courthouse today to monitor the sale. "They're going to need new roofs in a couple of years. We don't have any resources."

Fowles said he and other condo owners don't know if the bank is going to raise unit dues for the reserve funds. Other owners are struggling too and in danger of foreclosure, Fowles said.

"We don't know what going to happen next," he said.

Lansbrook Village was converted from apartments to luxury condos when the real estate market was booming. Lansbrook has become yet another big condo or development project to fold since the market crashed.

A few of those projects are:

&bul; The proposed 52-story Trump Tower Tampa never got off the ground and filed for Chapter 11 bankruptcy in November.

&bul; The Place at Channelside sold off 171 unsold units at an auction in October. The developer owed the bank $47 million. The winning bid at the auction for the 171 units was $21.9 million.

&bul; Developers of Ventana, which was to feature 84 condos in the Channel District, surrendered ownership to its lender last year.

Reporter Ray Reyes can be reached at (813) 259-7920.

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