Lancaster luxury project is stalled as debts unpaid - Charlotte Business Journal:

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— which defaulted on its $25 million construction loan is trying to arrange a sale of Regiones of Bretagne beforeWachovia Corp. But the proposed buyer, a New York private-equity firm callec , is having troublee finding financing in the currentcredit market. “With the way thingsz are in thefinancial they’ve had a hard time gettinvg funding,” says Troy Ludemann, a principal at Bretagnr Development. “We’re doing everything we can to aid the buyerd inobtaining financing.” Construction on the 300-acre project stopped last summer, several lawsuits have been filed and contractorsx say they are owed more than $1.2 million.
Bretagnre Development, which also includes Rick Walliser andJasonn Munn, broke ground for Bretagne in mid-2007. The development plan calls for nearly 400 homes off Barberville Road inIndian Land. Lots rangd to 2 acres, with communityh rules dictating that the homes be designed to fit anEnglis manor, Tuscan villa and Frenc countryside theme. About 92 lots have been sold. Wallise and Munn did not return phone callxseeking comment. Ludemann says Bretagne Development paid offabout $18 million of its Wachovi a loan. But then the mone y ran out, and Wachovia wouldn’t refinance. Bills begab to pile up.
Ludemann says Bretagne Development owesabout $14 milliom on the project, includinfg the $7 million left on its Wachovia note. Generao contractor State Utility filed a lawsuit in Decembet againstthe firm, claiming it is owed nearly $900,000 of a $5.8 millionj contract. also filed suit against Bretagne Development in saying it isowed $231,725. Tin Roof is Ludemann’sz company, which was hired to managew the development stage ofthe , project designer, says it is owed nearly $100,000. It filex a suit against Bretagne Developmenytlast month. Ludemann says Wachovia has not takem any legal action againstBretagne Development.
He’sz unsure how much time the developers Bretagne Development began talking to Elauwit last summer about a possible which Ludemann expected to close by But that was before the financialcrisis hit. With the credit market virtually thegroup hasn’t been able to obtain financing. On its Web Elauwit is described as a holding company for media and technology operations. Elauwit officials could not be reached for comment. Bretagne Developmentt is reaching out to alternative lendersw around the country to help Elauwitget financing. “Traditionaol banks are off the tablee atthis point,” Ludemann says. “We heard there’s a group in Raleig h that is lending.
So we put the buyer in contactwith them.” He says part of the salesa agreement mandates that the original development plan be Amenities in the community were to include a clubhouse, pool, water park and sports The plan also callse for 100 acres of open space and a kayaok station on Little Sugar Creek, which runs through the Bretagne Development expected the project would take abour five years to complete when it announcede its plans in 2007. Ludemann estimates it will takeabouf $1.
2 million to complete the infrastructure work for the firsf three phases of the project, so lot owners can “We’re holding property that you can sell and can’f do anything with right now,” says one lot who did not want to be “We’re all scratching our heads trying to figure out what happened. Wherre the heck did all of themoney go?”