"Trick or treat?" When federal regulators knocked on the front door of Bradenton-based Freedom Bank on Friday, they weren't there hoping to score some bite-size Snicker's and Reese's Cups. They were there to put up the "Closed" sign and notify Freedom Bank customers of their lender's demise. According to TheStreet.com,
"Like so many community banks in Florida and other states that were at the forefront of the housing boom, Freedom's problems sprang from loans to residential real estate developers, who stopped making payments shortly after a sharp drop in demand for housing." The financial news website compiled a list of other
"Florida banks that could be in danger."
Small, community banks aren't the only ones feeling the drain of the
HousingBath. Chicago-based Corus Bank is getting hammered by the non-performing portion of $1.4 billion in loans to 18 South Florida condos and condo conversions. Now, word out of Birmingham that Regions bank is poised to foreclose on a $40.2 million construction loan made to BSG Development Group for the
Cabana on Collins project at 62nd Street and Collins. The Cabana website informs visitors
"Construction is underway with an estimated completion date of late 2008." Regions has not filed foreclosure lawsuits on the other two BSG condos, Terra Beachside Villas and Terra Beachside Villas II. Both projects are located in close proximity to Cabana on Collins.
Better news out of Tampa (just look at that genuine hot-model-posing-as-luxury-real-estate buyer's smile), where the developer of one high-profile condominium project sees better days ahead. Richard Saachi filed for Chapter 11 protection for his
Towers of Channelside (TOC) project earlier this year when Wachovia forced his hand. Now Shannon Behnken of the Tampa Tribune says "
This is big news. It's likely, industry insiders say, that the Towers is the first condo complex in Florida to emerge from bankruptcy. Only time will tell if more follow suit." Thinking back on headier boom times, Behnken blames condo developer novices and bad timing for most of the Tampa projects that drowned in the bath,
"The housing boom seemed to bring developers - and wannabes - out of the woodwork. News releases announcing the "tallest" or "most luxurious" condos to ever grace Tampa arrived on my desk regularly."
"Trick or treat?" When federal regulators knocked on the front door of Bradenton-based Freedom Bank on Friday, they weren't there hoping to score some bite-size Snicker's and Reese's Cups. They were there to put up the "Closed" sign and notify Freedom Bank customers of their lender's demise. According to TheStreet.com, "Like so many community banks in Florida and other states that were at the forefront of the housing boom, Freedom's problems sprang from loans to residential real estate developers, who stopped making payments shortly after a sharp drop in demand for housing." The financial news website compiled a list of other "Florida banks that could be in danger."
Small, community banks aren't the only ones feeling the drain of the HousingBath. Chicago-based Corus Bank is getting hammered by the non-performing portion of $1.4 billion in loans to 18 South Florida condos and condo conversions. Now, word out of Birmingham that Regions bank is poised to foreclose on a $40.2 million construction loan made to BSG Development Group for the Cabana on Collins project at 62nd Street and Collins. The Cabana website informs visitors "Construction is underway with an estimated completion date of late 2008." Regions has not filed foreclosure lawsuits on the other two BSG condos, Terra Beachside Villas and Terra Beachside Villas II. Both projects are located in close proximity to Cabana on Collins.
Better news out of Tampa (just look at that genuine hot-model-posing-as-luxury-real-estate buyer's smile), where the developer of one high-profile condominium project sees better days ahead. Richard Saachi filed for Chapter 11 protection for his Towers of Channelside (TOC) project earlier this year when Wachovia forced his hand. Now Shannon Behnken of the Tampa Tribune says "This is big news. It's likely, industry insiders say, that the Towers is the first condo complex in Florida to emerge from bankruptcy. Only time will tell if more follow suit." Thinking back on headier boom times, Behnken blames condo developer novices and bad timing for most of the Tampa projects that drowned in the bath, "The housing boom seemed to bring developers - and wannabes - out of the woodwork. News releases announcing the "tallest" or "most luxurious" condos to ever grace Tampa arrived on my desk regularly."
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