Role: Bank Executive
Client: Managing Director of Special Assets Group
Business Description: Broken Condos (Southeastern, Michigan)
- Multiple Semi Completed Condo/Site-Condo
- 90% +/- Developed Sites
- Unfinished or Unbuilt Vertical Construction
Critical Issues:
- Incomplete developments
- Missing buyer escrow deposits
- Undedicated or unapproved infrastructure
- Mismatched home prices in same condo association
- Unrecorded master deed amendments or expired developer control periods
- Angry co-owners, regulators, law enforcement and municipal inspectors
Resolution:
- Met with all stakeholder groups individually to understand and address their concerns
- Continued ongoing open communication and updates with all stakeholders during course of our involvement
- Took steps to legally and practically separate Bank from defaulted developer/borrower. Addressed Michigan Successor Liability Doctrine and successfully protected Bank
- Corrected development engineering and construction mistakes
- Completed unfinished development including inspections, negotiations and infrastructure dedications
- Corrected and completed unfinished units
- Built new spec units
- Phased project to allow for longer build-out
- Sold repaired and well-functioning development to new owner/developer for cash
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