Last month, a Sonoma sales rep told the West U Examiner that the project had secured financing — which turned out to be condo-sales-speak for “Maybe if people think we’re definitely going ahead we can still sell units and somehow find a way out of this mess.” Now Nancy Sarnoff reports in the Chronicle that the developer of the condos-and-retail complex slated for what used to be Bolsover St. in the Rice Village has told her that the project “is being put on hold ‘for the short term.’” This appears to be developer-speak for “We’re toast.”
Was the problem just “economic uncertainties and tumultuous credit markets”? After developer Lamesa Corp. and partner Randall Davis pulled their switcheroo, deciding to start with the project’s second phase because they couldn’t get the more grandiose first phase financed,
they went back to the market and were negotiating for a $70 million loan with 40 percent equity to build the smaller second phase of 85 units.
At that point they had nearly 70 buyers who had put down deposits. More than half were interested in the second building.
Translation: Almost half their buyers bailed.
There’s good news for the trashed 2-block section of the Village Sonoma leaves behind, though:
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