NORFOLK
Almost two years ago, Maria Evans decided to trade her four-bedroom house near Mount Trashmore in Virginia Beach for a condo in downtown Norfolk.
“For me, it was the convenience of not having to cut the grass and worry about plumbing and security,” the retired accountant said. “I was very excited about moving because I wanted to downsize.”
Attracted by the abundance of nearby restaurants and a view of the Elizabeth River, she decided to buy a unit in Granby Tower. She eventually deposited 10 percent of the $499,000 purchase price, Evans recalled, and expected to take delivery of her 23rd-floor unit in June 2008.
With the foundation of the building still not in place and construction stalled for months, Evans wants her deposit back.
“I’m 65 years old,” she said. “Am I going to wait two or three more years? As the years creep up, it’s not that easy to move.”
One year after breaking ground for the $180 million project, Granby Tower’s developer faces a growing roster of buyers like Evans who are clamoring for their deposits. The developer, Marathon Development Group of Norfolk, notified buyers in mid-April that it would consider canceling their purchase agreements and providing refunds if it didn’t have financing for Granby Tower “in a reasonable time period.”
More recently, Evans and others said, they’ve received letters saying that Marathon would be willing to refund their deposits if it wasn’t able to line up financing within 60 days.
Buddy Gadams , Marathon’s president and chief executive officer, said in an interview last Friday that the project has attracted “well over a hundred buyers” but declined to discuss the recent letters. “We are certainly sensitive to the buyers’ concerns,” he said. However, “each individual contract is confidential.”
Gadams said Marathon has lined up a lender to finance Granby Tower’s construction and expects to wrap up the financing in 30 to 45 days, a suggestion that he has made repeatedly in the past. He declined to identify the lender.
These assurances no longer satisfy Peter Forti . The trader for a Norfolk marine-fuels company said he and his wife agreed to buy a unit in Granby Tower in April 2006 for delivery this July. Because of the project’s delays, Forti said, he asked Marathon to revise his contract and provide him with options, including one that would allow him to cancel the contract and recover his deposit. Marathon, he said, has not yet responded to his request.
Forti said he didn’t blame Gadams for the delays. Construction of Granby Tower would be well under way, he said, if the federal government hadn’t held up development three years ago by threatening to take the site for a court annex. Still, “people’s lives have been put on hold” because of the delays, said Forti, who said he has sought help from an attorney.
Marathon’s plan for the project calls for building more than 300 condo units, retail space, townhomes and a parking garage. In October, the company disclosed that it had binding contracts for $80 million of condo units.
So far, only one deposit-related dispute has ended up in court. In March, a husband and wife sued Marathon in Norfolk Circuit Court to cancel their agreement to buy two units for a total of $1.19 million and recover their $119,000 deposit. The couple, Jon and Jennifer Crockford of Norfolk, said the contract called for their 21st-floor units, which they planned to consolidate, to be available around October 2008. The suit, which described earlier requests to have Marathon return their deposit, was settled out of court in April, with settlement terms not disclosed. Last week, Gadams declined to comment on the case.
Other suits could be coming. That’s partly because Virginia’s Real Estate Board provides limited help to buyers of condo units. The Virginia Condominium Act allows buyers 10 days to change their minds after signing a contract and receiving a public offering statement from the developer. However, the act doesn’t address other types of deposit disputes, said Tom Perry, property registration administrator at the Virginia Real Estate Board in Richmond.
If a developer fails to deliver a condo unit within the specified amount of time, there may be a breach of contract. But developers routinely include language in their contracts that provide them with leeway, Perry said.
Adding to the pressure on Marathon is the likelihood that tighter credit standards may make it more difficult for some buyers of Granby Tower units to qualify for the financing they initially hoped to get. Compared with conditions two years ago, lenders today demand higher credit scores and bigger down payments from condo buyers, especially if they aren’t going to live in the units they are buying, said Michael Hamar , a Norfolk attorney who has handled deposit disputes at another downtown Norfolk condo project.
When announced four years ago, Granby Tower was described as an engine for continued downtown development. Marathon, however, encountered repeated problems finding the needed financing. When an agreement for financing fell through in September, construction came to a halt and has yet to resume. Beginning in December, contractors removed pile drivers, cranes and other equipment from the site.
Since then, contractors, subcontractors and suppliers have filed more than $20 million of mechanic’s liens against the project for services and materials they say they’ve provided.
Harry Taylor said that he still looks forward to moving into the 12th-floor unit that he contracted to buy and expected to be ready this July. But because of the repeated delays, his confidence in the project has ebbed, the Chesapeake retiree said. His greatest concern, Taylor said, is his liability for something with an uncertain future. If financing for Granby Tower were in place tomorrow, its completion would still be at least two years away, he estimated.
“How long do you want to live your life in limbo?” he asked.
Tom Shean, (757) 446-2379, tom.shean@pilotonline.com
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Ethan
"I don't know if the building pre-dated events at Town Point Park."
No it didn't pre-date the Park. That condo building was built a few years later and the Winconsin was slipped into what use to be the "Banana Pier" which the City used as a parking lot. That condo building is on the site of the old "Cold Storage Building". I remember when it was torn down, and just prior to doing so they found bodies in it. The homeless used it. Before Waterside opened I was hired by the city as second in commnad to the Division of Parking. A very thankless job, but I loved it for a number of years. People don't really understand what goes on in trying to accomodate everyone when it comes to parking in a downtown area. The worst ones are the monthly parkers. They want to park in front of their business, and get mad as hell when that can't always happen. With Waterside opening in 1983 a lot of parkers had to be re-routed to other facilities.
Again and Again, People And Their Money....
Never put down a deposit on a vehicle that doesn't have clear transferable title, for which financing does not yet exist, meaning buyer does not have a cashiers check in hand ready, willing, and able to buy. Never put down a deposit on something that hasn't been built yet, I don't care how fancy the folks and their leased trailer offices are. Of course one would not want to give back deposits that earn "float". Perhaps hundreds of thousands of dollars in interest earned on the deposits annually, payable to the holder if not spelled out in the contracts regarding disposition of "float". Perhaps the little known Virginia Real Estate Transaction Recovery Fund could eventually benefit these individuals. Surely the VREB is considering additional condominium regulation considering the caliber of lawyers who also have deposits on what so far appears as Norfolk's version of Stonehenge.
Harborfest
Also, Harborfest pre-dates the actual development of Town Point Park as it is now. Harborfest originally started with a tall ship docking at NOAA and folks going there to board her. It was actually 3 years after the start of Harborfest before they had city owned docks to berth the ships at, which dates the first Harborfest closer to downtown around 1980. Waterside opened in '83, which put Town Point Park into use for it.
Having lived downtown..
I lived in the Fairfax building on City Hall for 3 years during the start of the revitalization of downtown Norfolk. A few things are misconstrued here about downtown living. Yes, when Festevents has something going on at Town Point Park, it is a SERIOUS pain, because they jam pack the parking garages to the gills, and have no consideration for residents with the resident parking permit as sold by the city. One time too many I elected not to go out on the weekend so I wouldn't lose my space. But, that's what happens when you live that close to Nauticus, Town Point, and have the Wisconsin aimed at the building beside you. The noise factor, isn't the fault of the event organizers, engineers, or musicians. If you want to blame someone for that, blame the architects and designers who laid out the map for downtown. The sound echoes and bounces down the streets and alleys, which helps it carry. However, whenever it was music I didn't care for, I just closed my windows. To cite Af'ram as being disruptive because of "loud bass" is almost asking for Paul Riddick to cry racism. And those cats over at the condos next to the Wisconsin, they have private restricted parking not open to the publi
When I retire I'll get worshipped like an old battleship.
George, walking home from Beerfest (friends all met up there, I was close enough to walk). I walked past that building and there were residents (or their guests) out on a balcony yelling at the people down below. Something about throwing something, I didn't entertain them. They didn't throw anything at anyone that I saw, so no big deal. People getting a little rowdy is all. I would imagine those people hate the Wisconsin, as it ruined their view (at least the people down lower). I don't know if the building pre-dated events at Town Point Park. I live near a major road, and I hear people peeling out from time to time or racing. Don't care. I hear ambulances all day and night. Don't care. It's expected living in the "big city."
RE: Arena
The Arena idea is certainly worth merit. What Norfolk does not have is an attraction for tourist dollars, and I think that really needs to be looked at. I'm also sick of all the condo's, and I don't think they are needed. Just what does Norfolk advertise to attract tourist? Seriously, because I don't know!
Arena, anyone?
I know I'm probably in the minority here, but instead of all these luxury condo projects, perhaps Norfolk needs to finally consider (or reconsider) the possibility of a new arena...this project costs $180 million, which still wouldn't cover the full cost of an arena, but throw in a sponsor and naming rights, and it would help a little more. Scope, nice as it is for its age, is old and outdated, and will never attract the kind of sports that Norfolk has flirted with over the last decade-plus (NBA and NHL). It's time to put the love of condos on the back burner in favor of a suitable multi-purpose arena (20,000 capac. with convention space). Of course, it's a lot more complicated than that, but at least put this kind of money to a project that has some potential to it.
Imagine if you will
the condos to the right of the Wisconsin that have been there for a number of years now and the noise they must experience from any kind of event in Town Point Park. During Harborfest, they have to get special permits to get in and out of their own parking ramps, and all the years I've worked with Harborfest I've never heard a complaint from any of them.
2 things
George - I assume half the complaint is because it was (most likely) hip hop. While I think most of the popular modern stuff isn't good, there is great stuff in the underground. Anyone know what the profit margins are on something like Granby Tower? A friend lived in ?Ghent on the Square? when it went from apartments to condos. At the time the city valued the property at $7mil, but a back of the napkin calculation of the sales prices showed all units sold would bring in around $14mil. The buy to rent ratio was way out of wack too (renting was way cheaper than owning). This is without factoring in the costs of slapping on the granite countertops and stainless steel appliances of course. I wonder what these people have made off of the housing boom. Of course the whole country (and world) get to suffer for a bit in the downturn, but the recession / depression will remind Americans what is really important.
rrc1943
I don't know when you moved to your location but Festevents started actively in 1983. Harborfest started years before that. The noise factor was part of the problem with the Boone's double decker bar on the Harrison Pier on OV. The courts shot it down and let the Boone Family keep their bar as is. If last weekends event was the first time you were bothered, then I don't see the problem. Having worked with festevents and harborfest, I'm well aware of the noise, and it's interesting you never had a problem in the past. Having said that, I wouldn't dream of living in downtown Norfolk to begin with. It looks to me you would have more problems than infrequent noise from an event which brings revenue into the city.
Town Point Park?
I know that the residents of Freemason had issues with loud bass from Town Point Park during Afram Fest. I'm not sure how bad it was, I didn't hear it (even though I was in the neighborhood a few times). I would be wary of anyone who complains about noise after moving to a city atmosphere. This is true of Granby Street. There are residents of freemason that probably existed before Town Point Park, but I *know* that that place has been there as long as I can remember, and I remember seeing shows there when I was in high school in 1992. I believe the apartments and condos closets to the venue came later. I do know that bass frequencies travel farther, so perhaps the artist was driving lots of low end (bass bins), and this is why the residents heard it more-so than other events.
Loud Festivals?
Just a little off-put by the comment about the loud festivals downtown. According to your post you have been downtown longer than the festivals have been in Town Point Park. Harborfest started in the 1970’s; this is its 32nd year, which makes the event older than Town Point Park.
The Afram festival may not have been your type of festival or cater to your tastes, but let's at least be fair about the complaints. I lived in West Ghent and could hear most events from Town Point Park from my back yard.
There are outdoor cultural events planned all spring and summer; there have been for years. It is part of what makes Norfolk a good place to live, maybe you should attend them and be part of the noise!
Same thing happened recently
Same thing happened recently to my sister purchasing a condo in a new developement in New Jersey. The market skyrocketed, the contractor/developer stalled, hemmed and hawed for 2 years...then decided to write all condo purchasers a letter to release them from the contract sale...
My sister refused to be let out of the contract and finally found out the developer/builder was reselling the condos for over $50-100 thousand more than she contracted for..She was a real estate agent..had all kinds of ways to find out what was going on and the developer/builder ended up having to sell her the unit for the contract price which was $50,000 less than the lowest condo sold in the developement today.
These guys know what they are doing..they know real estate is one of the best investments man can make..for land cannot be created..what we have is all there is going to be..
and Granby Towers will be one of the most expensive when it comes to fruition!
rrc1943 are you saying it was louder then all the other events?
?
marathon development
Gadams' house is FOR SALE on Colonial Ave if you are interested in a 6,000 sq ft mansion with 7 bathrooms.
WELL, JAMIEGUMM
FYI, we bought our place before they started having the festivals at Town Point Park. In any case, the first time we had a problem was last weekend's festival.
Ethan, I first that notion from one of your comments
It seems to fit.(The idea that this project was set into play as a devise to skyrocket property values and put the bill to the fed's on the courthouse) One thing is for sure the quote that blames the federal government is bull and shortsighted. One thing that can not be mistaken; we cannot get investigative journalism on the subject from our VA Pilot. I just do not understand why we cannot seem to get more then fluff and the lighter side of the news on this. It is like Landmark has a vested interest in the project's success because its other publications are not necessarily giving us the tuff stuff either and this is an ugly situation. I certainly think that the publication needs to go back to when it had writers in the 80’s and early 90’s who dug in to a story and stated the truth. I’m for that, the news source has the where with all. Please do so. This is not helping our area attain true growth
Why Decline
If you have lined up the financing, then offer the information. That is unless it's another stall. Don't blame the federal government because you signed an open-ended contract. You knew what you signed, and if you didn't read it, too bad. Buyer Beware!
Condos or BUNCO?
Looks like just another way for the rick and sleazy to rip off the Public. I bet it will never be built.
20 Million In Liens?
And still no concrete evidence of financing? Buyers have put deposits down and didn't even know if this would come to fruition? Someone please tell me that if I wanted to build, I would have had land that was mine or planning to purchase (with a fre and clear title) and also to secure financing. Sounds like a very convoluted real estate deal. Then again, it is Norfolk, so we the readers will never really know how this certain group of developers was allowed to build without proper financing. But, its Norfolk and anything is possible-if you know the "players"!
Well rrc1943
I guess you're gonna die next weekend with Harborfest!! You knew what you were getting when you bought the place!
Welcome to Rip-off City!
I'm surprised the developer is still in town--usually in a real estate scam they take off as soon as possible with all the deposits they can get their hands on never to be heard from again. Insight Realty sold me a house full of termites and asbestos--their managing realtor was the owner of the house and also the contractor who did the remodeling on the house. Good luck finding an honest developer in this area--and I'd be hiring a lawyer if I had a deposit on the Grandby Towers. All those lienss are going to be coming out of someone's pocket--and I'd bet it's the people who put down the deposits.
BE GLAD TO GET OUT
Maria and the other buyers should be happy to get out of their Granby Towers contracts. I live a good mile from Town Point Park and the noise from the Afr'Am Festival this past weekend was so loud and annoying, I was unable to sit outside and enjoy the wonderful weather. I can only imagine how loud is would have been at the Granby Towers. I felt sorry for anyone living in downtown Norfolk.
Be careful what you sign
You always have to watch out for contract terms using the word "reasonable". Your reasonable may be quite different from theirs. You can always take it to court and have the judge decide what is reasonable.
Slam dunk
If the buyers signed contracts promising delivery in June or July of 2008, it sounds like breach of contract to me. They should be entitled to their money -- not to mention lost interest. Slam dunk.
The marketing of Granby Tower has always rubbed me the wrong way. Radio ads featured interviews with "residents" who touted the benefits of living downtown -- in a building that didn't even exist!
It sounds like this project may go the way of those condos out on Willoughby Spit.
Promises made but
not delivered. We've heard so many times about "impending" financing that hasn't occurred. The developer has lost all credibility and needs to come clean about what the true status is. In the mean time he is sucking interest off all these deposits. Let's hope the money is in a trust account and has not been skimmed off to something else. At the very least these people should demand an audit and verification of their money! I smell a rat.
Things that make you go hmmm
On another forum I read, a non-regular poster randomly did a drive by and suggested that the entire original idea of Granby tower was to increase the value of the property for the purpose of flipping it to the federal gov't. Buy land, announce condo project, fed gov't goes after land, it's now worth more due to condo project so the gov't has to pay much more. Except they backed out. I can see some fallacies with that idea, such as the expenses in advertising and the showroom. Anyone have any ideas on this? It was very odd but not unheard of, as I've had coworkers that did similar things when the gov't was to take their house for road expansions.