Avenue Communities - Arizona condo developer

Arizona-based condo developer Avenue Communities has filed for Chapter 11 bankruptcy protection according to azcentral.com. The filing primarily effects the Centerpoint condo development in Tempe, which remains incomplete. According to the article:

The developer received about $133 million in financing from Mortgages Ltd. to build the project, which has been under way since 2005.

The developer was supposed to receive as much as $170 million. However, the lender could not raise enough cash from investors, who supplied most of the money that Mortgages Ltd. lent to developers.

Discussions between the various constituents in Mortgages Ltd.'s bankruptcy have stalled, Avenue Communities principal Ken Losch said. The developer believes it can gain approval for financing that it says is available for the project more quickly through its own bankruptcy.

"We're not looking to reduce any liability," he said. "We're looking for the judge to give us the authority to move forward and finish our community."

In the Chapter 11 petition, the developer said its assets and liabilities are worth between $100 million and $500 million each. The company has between 100 and 200 creditors.

Losch said his company has received a term sheet from a lending firm that is willing to provide up to $75 million to finish building Centerpoint. He declined to name the lender.

It seems that Mortgages Ltd.'s own bankruptcy has caused a number of problems not only for Avenue Communities, but also for other projects that were relying on financing from Mortgages Ltd. to be completed.

If you can provide any additional information regarding Avenue Communities and the Centerpoint development in Tempe, Arizona, please let us know!