U.S. Bankruptcy Court Trustee Timothy Cory said it will take $30 million to $35 million to complete the 113-unit first phase of Mira Villa luxury condominiums, a development that has halted construction behind the JW Marriott in Summerlin.
Cory is negotiating with Nevada State Bank, Colonial Bank and TierOne Bank, the primary lenders on the project, to come up with a restructured financing plan.
Aspen Financial is also involved in the project as the mortgage lender and holds the first deed of trust on a 9.5-acre parcel that was planned for the 103-unit second phase of Mira Villa.
About 50 creditors and condo buyers attended a meeting Wednesday at the Foley Federal Building to ask questions about the project’s status and hear about the developer’s assets and liabilities.
Mark Oiness, president of Highland Development and managing member of HDB LLC, a subsidiary of Westmark Homes, said 21 buildings are in various stages of construction, approximately 85 percent to 90 percent complete.
Construction on the project was halted in the third week of January, just prior to HDB filing for Chapter 11 bankruptcy protection.
“We had significant cost overruns and we were working with the lenders to get additional funds to pay for the overruns,” Oiness said. “I felt at the time the best decision to get the buildings done was to put the project in bankruptcy.”
Oiness said current debt includes about $66 million in construction costs and $14.5 million in additional development costs. He estimated the project’s value at $120 million upon completion.
Mira Villa has 84 units are under contract for purchase with $25,000 deposits placed in escrow with Stewart Title and Fidelity Title, Oiness said. All of that money remains in escrow, he said.
However, money for upgrades and options totaling about $2.5 million was put into a separate operating account and those funds have been spent, he said.
Several condo buyers expressed concern about the appraised value of their units and how much of a burden will it be on the homeowners association to pay for the upkeep of common amenities.