Financing climate sends Roseland into Chapter 11

A company that owns about a quarter of the large Midlothian mixed-used development Roseland has declared bankruptcy.

Roseland Village LLC
, which owns 342 acres of Roseland’s 1,300 total acres said late Thursday that it had filed for reorganization under Chapter 11 bankruptcy after its financing was not renewed by its lenders.

The company said in a prepared statement that its members unanimously agreed that Chapter 11 reorganization was in its best long-term interest.

“Banks in general and our banks in particular are facing enormous pressure from federal regulators and examiners to reduce their exposure on commercial land loans, and the financing on this property is not being renewed,” said George “Buddy” Sowers Jr., manager and member of Roseland Village LLC in a statement.

“We are faced with the decision of either having this syndicate of banks seize the property as collateral for the loan or petition the court for approval of a long-term plan that facilitates the timely and orderly development of infrastructure on this important piece of property.”

According to the initial bankruptcy documents, Roseland Village LLC listed between $10 million and $50 million in assets and the same range of liabilities.

Among the list of its unsecured creditors is Chesterfield County, to which Roseland Village owes $220,000 in real estate taxes.

The only bank listed is Glen Allen-based Franklin Federal Savings Bank, presumably the company’s main lender on the project.

“This filing is designed to preserve the vision of our project and allow us to focus on a medium- to long-term business plan in the face of this historically difficult lending and banking environment,” Sowers said.

The grand plan for Roseland was unveiled prior to the real estate crash and was to include more than 5,000 homes, more than 1 million square feet of office and retail space, and a town center.

According to the Roseland website, homes there were originally supposed to be available beginning in 2010. Single-family homes, the website said, were to sell from less than $200,000 up to multimillion-dollar estates. The plan also called for rental properties, including penthouse condominiums in Roseland’s Old Town.

Businesses that were to fill the office and retail space were expected to open in 2010 and 2011, according the site.

A company that owns about a quarter of the large Midlothian mixed-used development Roseland has declared bankruptcy.

Roseland Village LLC
, which owns 342 acres of Roseland’s 1,300 total acres said late Thursday that it had filed for reorganization under Chapter 11 bankruptcy after its financing was not renewed by its lenders.

The company said in a prepared statement that its members unanimously agreed that Chapter 11 reorganization was in its best long-term interest.

“Banks in general and our banks in particular are facing enormous pressure from federal regulators and examiners to reduce their exposure on commercial land loans, and the financing on this property is not being renewed,” said George “Buddy” Sowers Jr., manager and member of Roseland Village LLC in a statement.

“We are faced with the decision of either having this syndicate of banks seize the property as collateral for the loan or petition the court for approval of a long-term plan that facilitates the timely and orderly development of infrastructure on this important piece of property.”

According to the initial bankruptcy documents, Roseland Village LLC listed between $10 million and $50 million in assets and the same range of liabilities.

Among the list of its unsecured creditors is Chesterfield County, to which Roseland Village owes $220,000 in real estate taxes.

The only bank listed is Glen Allen-based Franklin Federal Savings Bank, presumably the company’s main lender on the project.

“This filing is designed to preserve the vision of our project and allow us to focus on a medium- to long-term business plan in the face of this historically difficult lending and banking environment,” Sowers said.

The grand plan for Roseland was unveiled prior to the real estate crash and was to include more than 5,000 homes, more than 1 million square feet of office and retail space, and a town center.

According to the Roseland website, homes there were originally supposed to be available beginning in 2010. Single-family homes, the website said, were to sell from less than $200,000 up to multimillion-dollar estates. The plan also called for rental properties, including penthouse condominiums in Roseland’s Old Town.

Businesses that were to fill the office and retail space were expected to open in 2010 and 2011, according the site.

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MG
MG
11 years ago

Not surprising, it is a beautiful community though. We went and toured some of the homes during the homes tour last fall. They are asking Founders Bridge, Tarrington, Rosemont prices, but they are in Powhatan with not as good schools and kind of in the middle of nowhere except for being in close proximity to an 80% empty westchester commons mall. Theres also not any golf, tennis, fitness, or anyother draw to the area. If youwere going to but a million dollar home, you can get a much better deal closer to the city or in an area with great… Read more »

Karen Kelley
Karen Kelley
11 years ago

We live adjacent to Roseland in a historic home and have embraced the developers because of their vision for making this area into a true community. The above comment is incorrect in saying that we are in Powhatan because we are actually located in Midlothian, and have some of the highest ranked schools in the area. As far as Westchester Commons goes, we have immediate access to a movie theatre, restaurants, and retail stores within a few minutes of getting into the car, and I can truthfully say that we know lots of people who travel there from all over… Read more »

Phillip
Phillip
11 years ago

Roseland and Hallsley are different (but adjacent) places. They are in Chesterfield not Powhatan. If you drive through Hallsley you’ll see an enigma within the residential real estate community, homes under construction and sold signs.

michael smith
michael smith
11 years ago

I wonder if Chesterfield County will get the $220,000.00 from real estate taxes they are owed or will they lose out like they usually do…………..

Mr powers
Mr powers
11 years ago

I hate developments, weird people live in them. Either live in a city or a farm……………should be no in between.