Tuesday, June 21, 2011

2,000 Acre Bundoran Farm "Preservation Development" in Albemarle County Scheduled For Foreclosure June 29

In January, this blog noted 2010 was the worst year thus far in the Charlottesville Area's  5 year (and counting) RE downturn.  But it's official: with just under half the year gone, 2011 has now become "the worst."  

Charlottesville area home sales are now below what they were in the Year 2000.  The most recent news is that home prices keep dropping, May's sales were lower than April's, and significantly down compared to 2010.  And a recent report shows area foreclosures rose 25% y/y.

That's at the low-end.  Anybody keeping an eye on the mid-to-high end sees the market's hurting even more: a couple years of inventory and very few buyers.  Which leads to:

Bundoran Farm

The latest casualty of the area's housing bubble is  a "high end" development.  Bundoran Farm had a great vision: to integrate farming, the "green" life, sustainability, and eco-building.  But it was conceived in another era, for another era, and for another kind of mortgage market and economy: easy, optimistic. 

Wells Fargo--which took over the failed regional Wachovia--is foreclosing on the property June 29, 1pm, on the steps of the Albemarle County Courthouse.

Even so, spokespeople from developer Celebration as well as  Wells Fargo Bank remain optimistic about the future of the project.

 In April, this blog noted that Upper Bundoran, the farm's manor house + 55 acres, had been lost to foreclosure auction, and relisted in May for $2.3M.

At the time of the Upper Bundoran Foreclosure, we noted that several of the developments lots had been sold to an LLC, not to "homeowners."

It's not over.  At this time next year, the talk will be about the wave of foreclosures and strategic defaults that hit the mid-to-high-end markets--and how much more prices have fallen.

The Biscuit Run Bailout
Change in Plans: Belvedere Developers Sell Land to Build Apartment Complex


Montpellier said...

I saw this yesterday in the paper...I'm wondering what happens to the people who have bought already. I had the impression that a significant percentage of the lots were sold already...and reading the foreclosure notice, it looked like the entire thing was up.

It was nice to see a local firm get the foreclosure work instead of Burton & Shapiro or White.

C'ville Bubble Blog said...

Here's a link to data from County website: the list of who bought lots, as of April (also embedded in current post)--primarily developer entities


Click for larger full image

via gisweb.albemarle.org

Montpellier said...

Yes, I'd been to the tax website looking at this as well. I guess I saw three 'homeowners' - so there were some - and one is enough to make a mess for a foreclosure - and whether the rest are investment LLCs or not is irrelevant, unless those have all walked away. I'm not sorry this development has gone bust - one less part of the county broken up into a development. Maybe Fred Scott will come back in and pick it all back up for a song.