Fort Lauderdale Condo Developer Files for Bankruptcy ProtectionThe Strada 315 Condominium developer, Strada 315 LLC, has filed for chapter 11 bankruptcy in Fort Lauderdale, Florida. Official court documents state that the developer was unable to reach an agreement with their lender, Regions Bank. The developer was trying to strike a deal with the lender to extend a $34.8 million loan on the project. This came as a surprise to many because in the past two months the developer was able to sell 48 of the 117 condo units, significantly reducing its debt to Regions Bank by about $16 million.
Though things donâ€™t look good for the developer right now, court papers also say that a good portion of the remaining units are under contract, and while some of them may not close due to economic conditions they do expect many of them to close. The condominiums are located on Northeast Third Avenue in Flagler Village and range from about $228,000 to $606,000. The units are one and two bedroom and are very stylish.
While the developer is obviously struggling right now, this is by no means the end. Strada 315 LLC was forced to file for bankruptcy protection until they can strike a deal with Regions Bank or with another lender that will allow them to continue to pay subcontractors and the like, which they cannot do presently. On a positive note, Strada 315 LLC can take comfort in the fact that the resistance that they are receiving from Regions Bank is not personal, simply an indicator of the times for many lenders.