A local company that financed small-home builders during the boom is facing foreclosure on more than four dozen lots in several developments across the region.
Foreclosure notices went out last week on 49 lots owned by Manakin-Sabot-based Builder Resource and Development Co. at three higher-end residential developments. The foreclosures include 31 lots in the Fox Creek Development in Chesterfield, 12 lots at Patriot’s Landing in New Kent County and six lots at The Manor at Hunton Park in Glen Allen.
According to Sam Beale, the substitute trustee handling the foreclosures, Wells Fargo is the lender on all the properties. BizSense was unable to reach an official with Wells Fargo.
Builder Resource and Development Co. operates under the radar. The company doesn’t have a website, and its owner, Warner Blunt, declined to comment in detail about the company’s health.
BDR financed small-home builders who didn’t have the cash to buy up enough lots to compete with the big boys, according to developers and lawyers familiar with the company. Once the builders built and sold a house on the lot, the two parties would share in the profits.
“It’s really a good business model,” said Chris Corrada, a vice president at East West Partners, the developer of Patriot’s Landing. “They [BDR] just got caught up in a horrible economy.”
“We’re cooperating with our banks on all fronts,” said Blunt. “This is just the final step for some of those lenders.”
The future of the lots is up in the air. Bulk packages of empty residential lots don’t typically find buyers at the courthouse auction.
But Beale said that “if anyone is interested in a lot or two lots or more, we will offer them accordingly.”
In the case of Patriot’s Landing, a 254-acre development that is still in its first phase, the developer, East West Partners, might look to get the lots back.
“We’ll certainly look at the lots,” said Corrada. “We want to make sure those lots get back into circulation. The more people that live here, the better community it will be.”
BDR’s lots in foreclosure at Patriot’s Landing are plotted for medium-size single-family homes in the $300,000 to $400,000 range, Corrada said, and they won’t be an easy sell.
East West will wait and see how much is owed on the properties and how much of a cut the bank is willing to take on the foreclosures.
“We don’t know what the bank needs to get for them,” Corrada said. “But whoever buys them is going to have to hold them and work through them slowly.”
Corrada said East West will also work with the lender to make sure that whoever buys the lots conforms to the overall vision of Patriot’s Landing.
“We’re still running the development and control the development,” Corrada said. “We want to do everything we can to protect the community and help out the banks.”
Michael Schwartz is a BizSense reporter. Please send news tips to [email protected].
A local company that financed small-home builders during the boom is facing foreclosure on more than four dozen lots in several developments across the region.
Foreclosure notices went out last week on 49 lots owned by Manakin-Sabot-based Builder Resource and Development Co. at three higher-end residential developments. The foreclosures include 31 lots in the Fox Creek Development in Chesterfield, 12 lots at Patriot’s Landing in New Kent County and six lots at The Manor at Hunton Park in Glen Allen.
According to Sam Beale, the substitute trustee handling the foreclosures, Wells Fargo is the lender on all the properties. BizSense was unable to reach an official with Wells Fargo.
Builder Resource and Development Co. operates under the radar. The company doesn’t have a website, and its owner, Warner Blunt, declined to comment in detail about the company’s health.
BDR financed small-home builders who didn’t have the cash to buy up enough lots to compete with the big boys, according to developers and lawyers familiar with the company. Once the builders built and sold a house on the lot, the two parties would share in the profits.
“It’s really a good business model,” said Chris Corrada, a vice president at East West Partners, the developer of Patriot’s Landing. “They [BDR] just got caught up in a horrible economy.”
“We’re cooperating with our banks on all fronts,” said Blunt. “This is just the final step for some of those lenders.”
The future of the lots is up in the air. Bulk packages of empty residential lots don’t typically find buyers at the courthouse auction.
But Beale said that “if anyone is interested in a lot or two lots or more, we will offer them accordingly.”
In the case of Patriot’s Landing, a 254-acre development that is still in its first phase, the developer, East West Partners, might look to get the lots back.
“We’ll certainly look at the lots,” said Corrada. “We want to make sure those lots get back into circulation. The more people that live here, the better community it will be.”
BDR’s lots in foreclosure at Patriot’s Landing are plotted for medium-size single-family homes in the $300,000 to $400,000 range, Corrada said, and they won’t be an easy sell.
East West will wait and see how much is owed on the properties and how much of a cut the bank is willing to take on the foreclosures.
“We don’t know what the bank needs to get for them,” Corrada said. “But whoever buys them is going to have to hold them and work through them slowly.”
Corrada said East West will also work with the lender to make sure that whoever buys the lots conforms to the overall vision of Patriot’s Landing.
“We’re still running the development and control the development,” Corrada said. “We want to do everything we can to protect the community and help out the banks.”
Michael Schwartz is a BizSense reporter. Please send news tips to [email protected].