‘Legends’ company files for bankruptcy
A company planning to build luxury condominiums near Lane Stadium is in bankruptcy court for reorganization amid struggles to cover the Blacksburg project’s cost.
“We are facing some pretty tough challenges,” said James Oliver, manager of Warren Street Partners LLC.
Oliver signed papers placing Warren Street in bankruptcy Dec. 11. The company has assets of $50,000 or less and debts of $1 million to $10 million, according to the filing in U.S. Bankruptcy Court for Western Virginia.
The condo project, a 72-unit, gated community called “Legends of Blacksburg,” was supposed to be constructed starting this past fall. A promotional video at the project’s website describes the project as “currently under development just 200 yards from Lane Stadium and Cassell Coliseum.” The project is backed by Virginia Tech football coach Frank Beamer, who states on the video that he is an investor.
However, ground hasn’t been broken. The town has not received site plans or building plans for the proposed development, said Cathy Cook with the town building office.
The Legends project was announced in 2007 by another investor group, but there was no visible progress. Oliver, president of Highlander Construction & Development in Radford, and Mark Kinser, whose company is Unlimited Construction Inc. in Radford, said in spring 2012 that their Warren Street Partners was taking over the project and would complete it after design changes.
However, Warren Street Partners is still lining up financing for the $17.5 million facility, Oliver said this past week. He called the bankruptcy filing a strategy to reorganize the company and help it get financing.
Oliver said the chief problem current is poor economic conditions and a lack of activity in the real estate sector.
“We’ve raised over $4 million of capital so far and we’ll keep raising capital until a debt source says we’ve raised enough to move forward with debt for the rest of the financing,” Oliver said.
Buyer interest in Legends seems evident as 18 units have been reserved. Demolition of old structures is complete, while design work is proceeding, Oliver said.
Oliver expects bankruptcy proceedings to take 30 to 60 days and said construction could start in 2013.
“We believe 100 percent the project is going to go forward and be successful,” he said.
Mike Sayers, owner of Sayers construction in Dublin, said his company is among the parties owed money by Warren Street Partners. His company demolished several old apartment buildings earlier this year at the site.
“It’s unfortunate. We’re surprised that the first contractor that was in there didn’t even get paid,” Sayers said. “My assumption is when somebody signs a contract for whatever X amount of dollars it was, that they got the money to pay it.”
The Roanoke Times | 381-1661
No Comments »
No comments yet.