La Vista on Lavaca: The New Intel Shell
September 14, 2010 22:15 Filed in: News
It's official: the planned "Fondren Building" (AKA La Vista on Lavaca) -- a nine-story residential mixed-use tower consisting of 19 condominiums on the top four floors, a three-floor Executive Business Center, and first floor restaurant -- has been abandoned mid-construction by its new owners. As a result, a 9-story concrete shell now sits idle on Lavaca street near the capital.
According to the Austin Business Journal, the owners of the Fondren have filed for bankruptcy claiming 13.8 million in debts and $9.3 million in assets. In August, the partnership asked a judge for permission to sell the building to a New York investor for $8.4 million. Apparently, this deal has
fallen-through leaving the developers with few options for liquidation.
Complicating efforts to sell, the Austin Business Journal reports that "Travis County, which is owed $175,950 in unpaid property taxes, and Dallas-based Precept Builders Inc., which is owed $3.7 million, filed objections after the request to sell."
The 8-year-old project has had multiple owners and a sorted history. After running into financial problems, the project was halted during a rare mid-construction freeze. Typically, projects do not break ground until they have lined-up enough sales to receive financing to support the entire construction process.
The developers of La Vista on Lavaca -- which billed the project as “Downtown Living for Grown-up Texans” -- began construction after receiving a building permit and a street closure permit in April, 2008. They renewed the street closure permit once in November, 2008 but failed to renew it at it’s recent anniversary. With the interest accumulating quickly and contracts that typically require developers to meet tight deadlines, mid-construction stoppages are extremely rare.
As is often the case, the work stoppage was simply a precursor to the current bankruptcy filing. Now, bankruptcy proceedings will likely result in yet another change in ownership for the troubled project. But with tight commercial credit markets, it is unlikely that construction will begin soon.
According to the Austin Business Journal, the owners of the Fondren have filed for bankruptcy claiming 13.8 million in debts and $9.3 million in assets. In August, the partnership asked a judge for permission to sell the building to a New York investor for $8.4 million. Apparently, this deal has
fallen-through leaving the developers with few options for liquidation.
Complicating efforts to sell, the Austin Business Journal reports that "Travis County, which is owed $175,950 in unpaid property taxes, and Dallas-based Precept Builders Inc., which is owed $3.7 million, filed objections after the request to sell."
The 8-year-old project has had multiple owners and a sorted history. After running into financial problems, the project was halted during a rare mid-construction freeze. Typically, projects do not break ground until they have lined-up enough sales to receive financing to support the entire construction process.
The developers of La Vista on Lavaca -- which billed the project as “Downtown Living for Grown-up Texans” -- began construction after receiving a building permit and a street closure permit in April, 2008. They renewed the street closure permit once in November, 2008 but failed to renew it at it’s recent anniversary. With the interest accumulating quickly and contracts that typically require developers to meet tight deadlines, mid-construction stoppages are extremely rare.
As is often the case, the work stoppage was simply a precursor to the current bankruptcy filing. Now, bankruptcy proceedings will likely result in yet another change in ownership for the troubled project. But with tight commercial credit markets, it is unlikely that construction will begin soon.