About Tempe's Centerpoint Condominiums

The following article appeared in the Arizona Republic yesterday.

Click here to read the full article

Quick synopsis: Mortgages Limited, the lender for Centerpoint Condominiums, is attempting to force the developer into Chapter 7. Currently, the developer is in Chapter 11 whereby they hope to “reorganize” and obtain an additional 45 million dollars from a new lender and finish the first tower. By convincing a judge to move the developer from Chapter 11 to Chapter 7, Mortgages Limited will force the sale of the assets in order to pay back the creditors. Hearings are scheduled for Wednesday and February 26, 2009.

Click Here For More Information on Centerpoint Condos in Downtown Tempe

Welcome to part II of my series on Luxury Urban Condo Living in Phoenix, AZ .

Earlier we spoke about the amazing development of the towns around Phoenix. In Particular the development of downtown Scottsdale also know as Old Town Scottsdale as an urban center with a new contemporary lifestyle.

I want to take one step away from Scottsdale to Tempe, Arizona. Tempe is the home of Arizona State University (ASU) and the Arizona State Sun Devils.

Tempe is a fast growing and thriving city center that is much more than a college town.

Tempe offers access to Grady Gammage Theater, Tempe Beach Park, hundreds of restaurants, boutiques, shops, bars and night-life, Tempe ASU Karsten Golf Course, Tempe Market Place, ASU Sun Devil Stadium, Tempe Town Lake and the many events and activities available there.

Tempe Town Lake offers hundreds of annual events and activities including a unforgettable New Years Eve celebration and mesmerizing fireworks display.

In Tempe, prime real estate is on the water. No, the heat has not gotten to me. Yes, you are reading correctly on the water in Tempe, AZ.

The water I am speaking of is Tempe Town Lake which maintains a thriving corporate office centers and luxury condominium residences.

The primary condominium developments on Tempe Town Lake are:

Edgewater at Hayden Ferry Lakeside

• 40 luxury condominium units in an elegant 8-story tower
• Sophisticated 1-, 2-, and 3-bedroom homes, each with a private courtyard or balcony
• Spacious kitchens, high ceilings, and your choice of "traditional" or "urban" interior styling
• Magnificent views of Tempe Town Lake
• Heated pool, spa, and on-site fitness center
• Community lounge and outdoor barbecue patio
• Elegant lobby with a furnished meeting room and library

Centerpoint Condominiums -

• Centerpoint in Tempe, AZ comprises four soaring, contemporary towers situated in downtown Tempe, Arizona.
• Currently two of the planned four high rise towers are under construction
• the towers will encompass 800 low-maintenance, high-amenity condominium homes"
• phenomenal views
• top notch amenities including two private theaters, in-house spa,
• a boutique grocery store
• Trattoria M Italian restaurant
• a huge fitness center

Tempe offers penthouses, high-rises, lofts and luxury condos from $200,000 upwards of $2MM.

Call the great staff at any of the condo sales centers or contact your local Realtor today to arrange a preview of what life and urban living in Tempe or Scottsdale, Arizona has to offer.

_________________________________________

Copyright © James Wexler * Luxury Condo Living Tempe*

Contact James Wexler (480) 221-8080 for your Phoenix | Scottsdale area Real Estate needs

Urban Realty received the following letter from the owners/developers of the Centerpoint Condominiums development today. We thought it was worth sharing:

“We are excited to notify you that Centerpoint’s 22-story residential tower may open as early as this Spring with the retail plaza level following this Summer! We value our relationship with you, so we wanted to be sure to keep you informed of our significant milestones. We are writing to update you on a new strategic direction that we have selected to take in order to move forward more expeditiously to open Centerpoint Condominiums.

As the tallest towers in Tempe’s Mill Avenue District, Centerpoint Condominiums changes the City’s skyline and augments Mill Avenue’s status as the most vibrant and vital urban main street in the Valley. And the views, as you know, are incredible. In partnership with Valley celebrity chef, Michael DeMaria, Centerpoint will feature a 180-seat contemporary Italian restaurant, Trattoria M, and accompanying market-caffé, Aroma. Aroma will be a highly unique destination; offering artisan foods, locally grown, natural and organic whenever possible, in-house bakery, house made gelato, coffee barista, floral shop and a world-wide selection of cheeses and vintages. Residents of Centerpoint will also enjoy their own private “backyard” at the approximately 23,000 square-foot 7th level Great Room complete with a white sand beach pool with cabanas, poolside food and beverage service and an upscale fitness center with a Yoga and Pilates studio, among many other offerings. Centerpoint is likely the most innovative and exciting mixed-use destination to hit the Valley.

Our new plan, that we would like to share with you, has received overwhelming support from our homeowners and subcontractors as this sound business structure enables our homeowners to move into Tower One this Spring and the retail plaza level opened to the public by Summer. This will create a tremendous new destination for Tempe’s Mill Avenue District and the greater metropolitan area.

To give you some background, Centerpoint has been under construction since 2005 and was proceeding successfully, having procured many pre-sale commitments for condominium homes, until late 2007 when lender Mortgages Ltd., Arizona’s largest private lender who filed Chapter 11 in U.S. Bankruptcy Court on June 23, began defaulting on its funding obligations to us. This slowed and eventually stopped construction as you may know. After much patience over the past year and willingness on our end to work toward a resolution with Mortgages Ltd. and its investors, we have determined that they have no intention or ability to approve an equitable agreement with us. So, we are now taking action on our own terms to complete Centerpoint, and protect our investment in this landmark project.

In the recent past, we have negotiated a financing agreement of $75 million with a new lender. This plan has been in front of Mortgages Ltd. and its project investors for many months. Unfortunately, we have made little, if any, progress to obtain this new financing through Mortgages Ltd.’s bankruptcy court process. So, in an asserted effort to protect our asset and finish the job, we filed a lawsuit against Mortgages Ltd. for defaulting on their funding obligations to Centerpoint; as well as have filed Chapter 11 in U.S. Bankruptcy Court to afford us the opportunity to obtain new financing through our bankruptcy court’s authority. Gaining the court’s authority will allow us to move forward in a more streamlined, efficient and productive direction, benefiting all parties.

We requested our new lender finance $44 million initially. These are the funds needed to open Tower One so our homeowners can move in, and complete the retail plaza level, resident’s private “backyard” amenities level, the extension of 6th Street and the exterior of Tower Two. We are very excited to have established a partnership with this new lender who shares our commitment to providing the highest level of integrity and quality in every aspect of Centerpoint Condominiums.

While filing Chapter 11 may sound serious, it is an appropriate and routine step to take in this business situation and gives the federal court authority to restore order and protect assets. Once the bankruptcy court approves our new loan, which we hope to occur expeditiously, we will complete Tower One approximately 60-90 days after the close of the new loan agreement; then, the retail plaza level will open approximately three months following.

While much of our attention is on finalizing the terms of our new loan agreement, we certainly remain focused on delivering what Tempe Mayor Hugh Hallman and many other community and business leaders throughout the Valley refer to as a landmark project for the Mill Avenue District.

Please feel welcome to contact us with your inquiries. We will continue to update you on our progress as well. In the meantime, for your reference, we have attached the press releases recently distributed regarding our lawsuit and Chapter 11 filing, as well as a copy of the lawsuit. Please feel welcome to review them for further information.

Again, we sincerely value our relationship with you and look forward to sharing exciting milestones ahead. The lack of progress and commitment to our project by Mortgages Ltd. was unexpected. Nevertheless, good things come to those who wait; and in that regard, we know Centerpoint will be an amazing community for all of us.

Sincerely,
Kenneth K. Losch and David C. Dewar
Principals”

MORE:
Click Here to View News Release
Click Here to View Attorney’s Letter
Click Here to View East Valley Tribune Article
Click Here to View Arizona Republic Article

Click Here to learn more about the Centerpoint Condominiums

Centerpoint Condominiums is looking to receive the second and final installment of $2M of the $4.8M it was agreed to be paid in a hearing before the Mortgages Limited bankruptcy judge in December. The developer is also hopeful that a deal will finally be done allowing for a new lender to take a “first lien” position and provide Centerpoint with the estimated $70M still needed to complete the high profile project. If this happens, the developer believes that construction could begin again in January 2009 and buyers would be able to begin moving in as early as April 2009.

For More:
Arizona Republic Article
East Valley Tribune Article

As the scorching summer comes to end, the Centerpoint High Rise Condos are still unoccupied. That might change in the coming weeks if this new deal is approved by U.S. Bankruptcy Judge Randolph Haines.

While Mortgages Limited Securities (MLS) is hanging on by a thread, they have come to an agreement, or so it seems. This is the newest of many claimed to be "done deals", but only the next day in court will tell. The first deal included an outside investor, Stratera Portfolio Advisors that would funnel an immediate $4.8 million through MLS to Avenue Communities, developer of Centerpoint Condominiums. Apparently this deal wasn't good enough for MLS, who then sought another hard-money investor, Mountain Funding, LLC. They came in and somewhat complicated things when they demanded superiority deeds of trust, leaving the original several thousand investors with empty-pockets. The Judge was supposed to decide on that before the end of last week.

Yesterday, the Judge said he would approve an even newer deal, which only allows Centerpoint to receive an immediate $2.8 million from the first investor, Stratera. The other $2 million that was originally promised will be resolved in court on October 16 and the additional $75 million that is needed to finish the complex will also come at a later, yet unknown date.

Hang on future Centerpoint dwellers, your units will be ready soon...