Whitehall Suspends Work on Grand Haven Condominiums while it Works to Restructure its Debt

Developer caught with dropping prices and unsold inventory.

November 26, 2007 – Palm Coast, FL – Sarasota based Whitehall Quality Homes has suspended construction on phase II of the Riverview Condominiums in Grand Haven while it negotiates with its lender to restructure its debt according to Jerry Andrews, Whitehall V.P. of Finance. Andrews said that construction would recommence if negotiations were successful. Public records show five construction liens totaling $479,940 have been filed against the Riverview Phase II real property by unpaid contractors within the past three months.

The Riverview condominium complex was planned with two phases of four buildings each. Each three-story building contains twelve units. The first phase was completed in early 2006. According to public records, four units of Phase I remain unsold. Units were originally priced from the $400Ks to the low $500Ks. The three sales registered so far this year were at $305K, $300K, and $280K.

Due to reduced demand, construction was begun on only two of the buildings in Phase II. Roofing is completed and windows are installed. Some interior wall studs are installed but work has stopped. Those holding contracts on units in the two buildings under construction have paid a deposit equal to 20% of the purchase price. The disposition of these deposits, should construction not recommence, is unknown. The 10% deposit paid by buyers under contract for units in either of the two buildings not yet started is still held in escrow.

There are currently thirty-two Riverview units listed with MLS including twenty-two of the forty-eight Phase I units. Among these are the four Phase I units still held by Whitehall.