CEO Blames Credit Crunch...Not The Florida-centric Rondo Model
According to the Wall Street Journal, Tarragon Corp. has filed for Chapter 11 bankruptcy protection. While CEO William Friedman blames the credit squeeze, the boom and bust of Tarragon has much to do with the Company's pursuit and purchase of high-priced rental conversion properties in Florida. In 2004, when Tarragon shares were bouncing around $10, the Company owned 23 apartment communities in Florida, but according to the Journal, "(Tarragon's) plans to buy rental apartments at high prices, and convert them to luxury condominiums flopped when buyers failed to materialize and renters fled." By October 2007, Tarragon was in fire sale mode and the stock plummeted to $3 after reaching a housing boom peak of $27/share in July 2005. Tarragon's Florida projects include the Las Olas River House in Fort Lauderdale, Mirabella in Jacksonville and The Quarter at Ybor in Tampa. 
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