Knoxville Condos Become Foreclosed Homes for Auction
Condo units at the Cityview at Riverwalk Condominiums in Knoxville, Tennessee became foreclosed homes for auction after the developer failed to pay its construction loan.
The condo complex was planned to be the centerpiece of a large waterfront development project supervised by the city of Knoxville. It was envisioned to have walking paths, a marina and a park. The project held its groundbreaking ceremony, which was attended by developers and city officials, in August 2006.
Now the Cityview at Riverwalk will be auctioned off at the City County Building in downtown Knoxville on September 2.
According to Dave Hill, director of the South Waterfront Development, the major lender for the project, Regions Bank, has decided to foreclose on the project so it can sell it to another developer able to complete the project and pay the project loan.
Hill said that the condo project is approximately 90 percent complete and that he is hoping the next developer will be able to complete it in six months. He added that the completion of the project has a major role in stepping up the pace of waterfront development.
Hill also explained that Cityview was designed to be completed in 2008 and that most of the 122 condo units had already been purchased. But now, many of the buyers want to get out of their purchase contracts. No one has been able to provide information on how buyers can opt out of their contracts and what happens to buyers who want to keep their purchase contracts.
The city of Knoxville loaned out a total of $2.8 million to the Cityview project, but the money was not spent on the condo structure. It was spent on improvements on the public portions of the project such as a sidewalk along the river.
City officials explained that the city will not lose the money it loaned. They said that the project is near completion and that the loan will be paid through property taxes under the tax increment financing agreement with the developer.
According to South Waterfront Development director Hill, he hopes that in 20 years, the city’s south waterfront area will be transformed from its previous industrial orientation to a walkable and beautiful community. He reiterated that the foreclosure setback will not change the city’s vision for the south waterfront.
