Sep
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September 10, 2008

By Jessica Foster and David Wren – The Sun News

Carolina Crossing, a Portrait Homes community in Little River, is going through foreclosure proceedings that could result in one of its lenders taking over the undeveloped parcels and unsold homes there, company officials said.

Mike Pasquinelli, home builder Portrait Homes’ chief operating officer, said the company defaulted on the loan Park National Bank gave it to develop Carolina Crossing because of slow sales nationwide.

Its debt-to-income ratio went above the 5-to-1 rate called for in the Park National loan. The ratio was close to about 5.5-to-1, Pasquinelli said.

“We have been negotiating with all our lenders,” he said. “Unfortunately, we could not reach an agreement with Park National.”

Portrait Homes is one of many home builders caught in the real estate downturn that has swept the nation. Builders big and small – such as Levitt and Sons, DenMark Homes and Seacoast Communities Inc. – have filed for bankruptcy in the past year while building homes in neighborhoods on the Grand Strand.

About 50 percent to 60 percent of Carolina Crossing has been sold, and there are about 150 homes left to deliver, Pasquinelli said.

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:
http://www.myrtlebeachonline.com/business/story/588579.html
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BLOG NOTE:
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Our appraisal work in recent months has included a number of foreclosed subdivisions. They have ranged from developments of national well known homebuilders to local “mom & pop” subdivision deals. The absorption of lots that some developers included in their pro-formas was amazing in some cases.
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MBD

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