Bank of America has sold the debt on the 10-story Greenbridge condominium property in downtown Chapel Hill to an out-of-state investment firm. The loan was part of a sale of a larger portfolio of 29 "performing and non-performing commercial real estate loans" in 16 states with a total unpaid principal balance of $880 million. The buyer of the loan is CSMI Investors, a Delaware company formed by WL Ross & Co., Invesco Advisers, Square Mile Capital Management and Canyon-Johnson Urban Funds.
The $56 million project was financed with a three-year $43.25 million construction loan. Bank of America balked at paying final bills that came in $1.6 million over budget. After contractors filed $7.9 million in liens, the bank began foreclosure proceedings in April. At that point, about $29 million was outstanding on the construction loan.
Greenbridge, an environmentally innovative project on West Rosemary Street, has 97 condominiums and retail space in connected seven- and 10-story buildings. Only 37 of the 97 units had sold when the bank froze sales.
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