Eleven foreclosed lots and one partially built home in the troubled Mediterra at Carmel development were sold Thursday to its lender in a foreclosure sale.
CommunityOne Bank bought the properties for $1.8 million in the sale at the Mecklenburg County Courthouse.
Mediterra borrowed more than $5.18 million from the Asheboro-based bank, which put the properties into foreclosure and then purchased them for $1.8 million during an Oct. 29 sale at the Mecklenburg County Courthouse.
The foreclosure sale had been delayed for two months because of bankruptcy proceedings. Mediterra filed for Chapter 11 protection Nov. 6 during an “upset bid period,” which canceled the sale. The upset bid period follows a foreclosure sale and is a 10-day period during which someone can make a higher bid to buy a foreclosed property.
Mediterra, at 3400 Carmel Road, was slated to be a gated community of 12 “Mediterranean-style” villas, said the company’s attorney, Richard Mitchell of Charlotte-based law firm Mitchell and Culp.
Mitchell said construction stopped when the housing market declined and the bank stopped advancing funding. A model home in the development was only partially built when the work ceased.
“The bank committed,” Mitchell said, ”but two-thirds through, there was no more money.”
According to the North Carolina secretary of state’s website, the managers of the properties’ development company, Mediterra at Carmel LLC, are Scott Sadler and Bruce Bleiman, both of Charlotte. The company is listed as active. Sadler and Bleiman could not be reached for comment.
Mitchell said his clients tried to file a plan of reorganization during the bankruptcy proceedings but were unsuccessful, so a second sale of the foreclosed properties was scheduled.
Tara Ramsey can be reached at email@example.com.