Galveston Emerald by the Sea Condo Tower Not In Foreclosure

International Bank of Commerce, construction lender to Emerald by the Sea condominium tower, said the project is not part of a Jan. 1 foreclosure sale and that it has agreed to inject more funding into the development to expedite completion and to resolve contractor liens.

The Galveston Daily News reported that the tower might be a part of the foreclosure.

IBC officials say that it’s Piazza Blanca, the 65,000-square-foot shopping center near Emerald by the Sea and some related tracts that are subject to foreclosure after 500 Seawall I Ltd. defaulted on a $13.86 million loan with Prudential Mortgage Capital. More than five acres at 500 Seawall are up for auction. But the 1.0442-acre tract upon which the Emerald by the Sea is being built is not included in the foreclosure sale, bank officials say.

The legal description of the property Prudential plans to auction is substantially the same as the legal description used by G.T. Leach Builders in an affidavit seeking a lien on the condominium towers. However, two officials representing IBC say the builder made a mistake in its submission of the property’s legal description.

Although Piazza Blanca and Emerald by the Sea are products of the same developer — Sunhill International Corp. — they are owned by separate Texas partnerships, said Jeff Samples, president of IBC-Houston.

Namir Faidi is the registered agent of 500 Seawall I Ltd. Faidi also is a limited partner in Emerald Tower Ltd., according to state documents. Faidi also is a principal in Sunhill International.

IBC is the holder of the first lien deed of trust covering the high-rise condominium project, said George S. Craft, a partner with Houston law firm Porter & Hedges, which represents International Bank of Commerce as construction lender in the project.

Prudential cannot auction off the Emerald by the Sea, Craft said.

“Prudential does not have and never has had a loan to the owner of the high rise ... nor does Prudential have a lien covering the high rise or the property on which it is located,” Craft said.

Prudential Mortgage Capital officials have not responded to requests for interviews.

On Dec. 21, IBC, Emerald Tower Ltd. and G.T. Leach executed an agreement “whereby all parties committed to take the necessary actions to remobilize contractors, release mechanic liens and advance funds for an expedited completion of the high rise and delivery of completed condominium units to buyers in the very near future.”

G.T. Leach Builders had filed a lien against the Emerald by the Sea condominiums, asserting it was owed more than $3.6 million. Gary Leach, who heads G.T. Leach Builders, on Monday said construction crews would return to the Emerald by the Sea Construction site next week, when the lien also would be removed.

While the legal description of the property Prudential plans to auction is substantially the same as the legal description of the property against which G.T. Leach Builders filed a lien, Craft and Samples said the builder made a mistake in its submission of the property’s legal description. Leach said his attorneys prepared the legal description.

IBC has confidence in the Emerald by the Sea project, Samples said.

“We have advanced them enough to complete the project and satisfy G.T. Leach,” Samples said. “We are very optimistic with this new agreement; there are funds in place to finish the building.”

Sunhill International paid off its original construction loan to IBC in June, bank officials told The Daily News in July.

Construction of Piazza Blanca, a complex with white walls and towers topped with blue domes, was complete in 2005.

The Piazza Blanca property is scheduled for auction 10 a.m. Jan. 1 at the 722 21st St. courthouse.

Prudential takes Piazza Blanca for $12M

The Piazza Blanca retail center with its white walls and blue domes reminiscent of Mediterranean palaces was a glimmering $20 million icon of the island’s most golden contemporary development era.

On Jan 1st 2008 - Piazza Blanca was among the $40,000 Texas City lots and $400,000 Friendswood homes up for grabs during a foreclosure auction in the Galveston County Courthouse.

The 65,000-square-foot shopping center and some related parcels at 500 Seawall Blvd., became the property of Prudential Mortgage Capital.

Prudential Mortgage Capital foreclosed on the property after Piazza Blanca owner 500 Seawall I Ltd. defaulted on a $13.8 million loan, marking one of the largest local foreclosures in recent memory.

Prudential Mortgage Capital set the opening bid at $12 million. While the auction drew about 20 people, including some curious about Piazza, no one made a counteroffer.

Piazza Blanca and the 113-unit Emerald by the Sea condominium tower next to it, are the product of Sunhill International Corp., of which Faidi also is a principal. But Emerald by the Sea was not part of the foreclosure sale. Piazza Blanca and Emerald by the Sea are owned by separate Texas partnerships.

Although some tenants, including the 15,000-square foot Chico’s Paradise restaurant, have struggled and closed in the prominent shopping center, others are thriving, a leasing agent has said.

Industry observers have said tenants at the center would see more business when Emerald by the Sea is complete and condo owners begin moving in, which is expected to be within the next two months.

Piazza Blanca tenants include Subway Sandwiches and New York Pizzeria.

Chili’s Grill & Bar has a pad site at the center. A national Mexican restaurant chain has expressed interest in opening in Piazza Blanca, those in charge of leasing have said.

The Emerald by the Sea Located on Galveston Island's new east-end resort area is a 15 story high rise condominium that has all the amenities you and the whole family would ever want to fit your lifestyle.

Everything you could want is in walking distance and the Emerald has the lowest cost of ownership for the new class of Beachfront high-rises on Galveston Island.

I HEAR THE SO CALLED HOME OWNERS ASS. OR DEVELOPER IS OUT OF FUNDS. AND THE CLOCK IS TICKING.LIKE SO MANY OTHER BANK DEVELOPER RELATIONSHIPS..... SCREW THE OWNERS.. THE BANK NEEDS TO DO THE RIGHT THING THIS IS TEXAS AND QUIT BABY SITTING THE GUY WHO BASICALLY PUT THE SCREWS TO THEM. STEP UP AND DO WHATS RIGHT!
ITS FUNNY WE ALL WANT TO GRIP AT THE GOVERNMENT BUT HAVE A DOUBLE STANDARD FOR OUR SUPPOSABLE FRIENDS AND BOTTOM LINE! WOW !!!!