Josh Brown
The Virginian-Pilot
©
NORFOLK
The unfinished $200 million condominium project Spectrum at Willoughby Point is facing foreclosure.
The Futura Group LLC stopped work on the project a year ago. Now Wachovia Bank plans to foreclose on the Ocean View property by the end of the month, Rick Gregor, a managing partner with Futura, said Thursday.
"Essentially they want out of the deal," Gregor said. "It's a bad day for everyone. It was a dream project, one of best pieces of land in Norfolk."
The project was to be located at the west end of Willoughby Spit, near the entrance to the Hampton Roads Bridge-Tunnel, on 15 acres with views of both the Chesapeake Bay and Willoughby Bay. The developer stopped construction on the project a year ago after losing financing.
"We've been trying to work other deals since then," he said. "As time has gone by in the past year, it just seems to have gotten worse for the ability to raise funds."
Gregor said he had pursued selling the property or partnering with another company to develop it.
Wachovia, now part of Wells Fargo & Co., has given him until the end of the month to pay off his debt of $16.5 million or it will foreclose, he said.
The 327-unit development would have included a 200-seat restaurant, an 80-slip marina and 22,000 square feet of office and retail space.
The two city councilmen who represent the Ocean View area said they are saddened that Gregor is facing financial difficulty. Councilman W. Randy Wright said Gregor deserves praise for treating the neighborhood and potential condo owners with respect.
"He's done everything right in how he reached out to the community," Wright said. "He gave the people in Willoughby the chance to purchase condos before the general public. And as things went south, he gave people their deposits back."
Councilman Don Williams, a real estate developer who lives in Willoughby, said somebody eventually will build condominiums on the site.
"When the market comes back, somebody will buy that property from the bank and put together another plan," Williams said. "It's such a great site. Rick had a great project. He just got caught up in the market. It's happened all over the region, not just here."
Josh Brown, (757) 446-2318, josh.brown@pilotonline.com
Harry Minium, (757) 446-2371, harry.minium@pilotonline.com
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Less traffic.
Why Condo's
Why do you always have to build condo's how about a nice park, tree's remember those? I think you should turn away from the dwelling and make something that boater's could dock up to and have safe harbor if need be and a place to stay inbetween Norfolk and Va. Beach. Let the area stay open and clean, enough of the buildings that stay empty and cold.
I never could see the need
The timeing was all wrong and will be for atleast another 10 to 15 years for that project and other condo's like it. The costs of those were outrageous, and there is already enough overpriced real estate in OV that people can't unload. Condo's in general do not hold their value, but builders keep building, and building, and the city keeps approving them. I'm glad they aren't being built, but not at the expense of our tax dollars.
Let's hope the city doesn't end up "giving" the land to the Boone's. We've had enough of that around here.
The Sanctuary at False Cape?
Correct me if im wrong but wasnt it the same idiots that built a ton of condos down in sandbridge and then had to auction them off?
Do I recall correctly?
It seems I recall something about a city (taxpayers) subsidy on this project. If that's correct, then the developer has already received his profit so he can walk away with pockets stuffed full of cash and the taxpayers take a pounding again.
LOL @ the Boone
LOL @ the Boone comment...
Please no Thirsty Camel Marina... Do not give that man any ideas!
Although, we own a condo on the other end of the spit and were looking forward to this development so hopefully people would buy and raise our property values a little. Ahh well.
Granby Towers
Isn't this the big hole in the ground across from the Pilot? What's the status on that and how has that situation dragged on this long?
GOVERNMENT to the RESCUE!
GOVERNMENT to the RESCUE! Norfolk wants increased population density to fill their revenue coffers; this is already well-established by the city's actions downtown. Why not just have the city of Norfolk step even further into private business - the real estate development business - by subsidizing this Spectrum project? It's a win-win! This way, the project can't fail, because it's backed by those competent people in our local government. When the project needs more money, the government can simply give it more. And whether or not the market is ready or the investment is actually successful won't ever matter! Norfolk will end up with a beautified Willoughby Spit point, even if no body lives there, and the developer will end up with lots of cash. Gosh, I love socialism!
Greed
Why does this article not mention that he owns Atlantic Bay Mortgage?
Spectrum
Just call Ronnie and Lil Ronnie Boone, they'll buy it and build the Thirsty Camel Yacht & Country Club, complete with Jet ski rentals, paddle boats, and head boats.