Atlanta is witnessing a high-profile condo project, Trump Towers Atlanta, tumble its way into foreclosure. Initially proposed as Donald Trump's first foray into Atlanta, the condominium sales proved they weren't ready for the project when the secured property loan was scheduled to be slated for auction on March 2. The 48-story condo tower, at 15th and West Peachtree streets, is not only Trump's name, but two other development powerhouses from Atlanta and New York.
Atlanta-based Wood Partners, LLC and New York-based Dezer Properties Inc. have their names on the condominium project as well, making Trump's name ambiguous in terms of responsibility and greatest percentage of involvement. Trump's name is also facing similar problems in Florida where residents are suing due to market failures, but being told that Trump isn't the true developer, he's the name on the project.
A sign at the development site and the website still promote the condominium project but developers were considering turning the building into a hotel, with the base of the building still housing high-end restaurants and luxury stores. Condos and other downtown plans in Atlanta began to slow in 2006 and 2007, when construction was slated to begin.
According to International Property Journal, Ivanka Trump made a statement to radio station explaining “There will be Trump Towers in Atlanta in very short order,” adding that construction would begin “within a year,” but to no avail, she was wrong. The project had a completion goal in May 2008, when the developers stated 90 units had been sold out of 360.
Bennett Sands, one of the project's partners stated in the Atlanta Journal Constitution last summer “I think even if we had a giant pot of money, we wouldn’t start construction until a lot of the supply in Midtown had been absorbed. It’s just not prudent to add condo inventory into that market right now. The start of that project is a long way off at this point.”
Other areas of Atlanta's housing market are falling to foreclosure, as most states in the U.S. According to the latest Realtytrac statistics, overall foreclosure rates in the country decreased in January when compared to December 2009, but increased nearly 30 percent when compared to January of last year.
Atlanta is the Georgia's most populous city and the nation's 9th most populous region. Their foreclosure rate in January was 27 percent, with new foreclosure filings totaling 11,274 units. Georgia was ranked in the top 10 states who suffered from highest number of foreclosures in January.
Written by Amy Munday
Huliq.com
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