So it looks like its not just some buyers that have problems with basic math – Some developers run into issues as well. The sun has a story about CB developments $8.5 million dollar shortfall oat the Coquitlam Riverbend project.
The final phase of the financially troubled Riverbend condominium complex in Coquitlam would have lost its mortgage investors’ money even if its pre-sale contracts had been cancelled and units resold at current market prices, according to a receiver’s report.
In his conclusion, Bowra said the “best option in terms of maximizing recovery for the stakeholders” would be to sell the units at current market value and not the pre-sale prices.
However, someone would still need to pour $3.8 million into the project so subcontractors and suppliers could be paid and the project completed, which would still leave CareVest short $2.6 million.
Bowra, in his report, said other options to dispense with the project included selling the project “as is” to another developer, finishing the homes already under construction and selling off nine lots for which no construction has begun, or selling off the homes under construction and nine remaining lots separately.
All options would see CareVest lose $3 million to $4 million.
It doesn’t mention this in the linked story, and I haven’t been able to find this online, but a story on CTV news this weekend said that this mess isn’t just affecting pre-buyers that have yet to move into their homes. The liens filed against this project includes buyers that have lived in their completed homes for a couple of years and allready paid for all work done. For the time being those buyers will be unable to take out a loan on their property or attempt to sell. The CTV story mentioned the possibility of the total cost running into the hundreds of thousands of dollars for each home owner. Scary stuff!