Second Major Foreclosed Bank Owned Property in Central Texas

by on States

The site of the high-end waterfront residential development project located on Lake Travis, Texas has been listed for foreclosure. According to industry experts, the property is the second major foreclosed bank owned land that happened in Central Texas in less than a month.

Hass and Haynie, a San Francisco, California-based developer, planned to construct on the foreclosed land a luxury residential development estimated to be worth $120 million. The Vizcaya residential development will stand on a 1,050-acre former ranch of the Covert family. But according to the Travis County Clerk’s Office, the Covert family listed the land for foreclosure and is scheduled to be sold at an auction on September 1.

Records said that Haas and Haynie defaulted on its loan for the project, amounting to $20.4 million. The planned residential development is situated on one of the biggest undeveloped lands in the region with water access. It was supposed to include a marina, trails and an 18-hole golf course to be designed by Reese Jones.

The project was announced by its developer in April 2007. Haas and Haynie executives said that they plan to preserve the land’s natural characters, including its sloping and wooded terrain. The planned development project called for as many as 500 custom houses to be constructed in a span of 10 years. Custom houses will be built on lots that range in sizes from half an acre to two-and-one-half acre.

Early last year, a Haas and Haynie top executive announced that the project is expected to break ground before the end of 2008.

Lawyer David Armbrust expressed his disappointment upon learning of the land foreclosure. Armbrust was responsible for obtaining all the necessary permits for the development project, including a water contract with the Lower Colorado River Authority and for the 18-hole golf course.

He said that the developers told him a few months ago that the project will slow down and they will have to discuss financial matters with their partners.

The Vizcaya project is the second major foreclosure in the region following Legacy Texas Bank’s repossession of the Kerby Development subdivision that was planned for construction on a 468-acre land in western Travis County.

Records showed that Kerby Development owed Legacy Texas about $19.5 million, with the bank reclaiming the property for $17 million.

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