The owners of Club of the Isle Condos on Galveston's West-end defaulted on their $35.9 million loan from La Salle Bank
The owners of Galveston's West End Club of the Isle 264-unit condominiums - have defaulted on a $35.9 million loan from La Salle Bank, which has filed notice of its intent to sell the property in September to the highest bidder.
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Club of the Isle
3433 Cove View Blvd.
Galveston, TX 77554
Phone: (409)744-2778
E-Mail:
info@cluboftheisle.com
Website:
www.cluboftheisle.com (notice that the web site is already offline and parked at web hosting company GoDaddy.com)
Unless the owners, Club Lodgings LP, can salvage the situation, the property will go on the block Sept. 2 2008 at the Galveston County Justice Center.
A representative for Club Lodgings, left this voice-mail message: “There is no foreclosure at the moment; there’s a notice that’s been posted. I don’t really have any other comments. There should be no real changes for the residents.”
The notice of sale was posted Aug. 7 in the County Clerk’s Office. La Salle Bank Midwest National Association holds an amended promissory note dated Dec. 31, 2007. Houston developers Chaparral Group built Club of the Isle in 2003 as a luxury apartment complex.
It was one of several designed to meet a growing demand by affluent consumers in a boom time for the island. In 2006, Chaparral Group sold the property to Club Lodgings, which converted the complex into condominiums.
When lenders foreclose on a condominium project, they go after any property still owned by the developer such as the land, the common areas and the unsold residential units. In some cases, lenders sell the foreclosed units in bulk to investors.
Every market situation has projects that change ownership, good times and bad, it helps separate the strong from the weak. There are many good opportunities in today's market and some to watch out for. Make sure you get trusted advice before you jump in. The majority of our new developments are safe and sure bets.