SEQUIM — A 230-lot subdivision in East Sequim appears to be headed for foreclosure, the victim of bad economic timing and inflexible bankers, its developers said.
Larry Freedman and Allen Grant, who developed Cedar Ridge subdivision over the past five years, have received a notice of default from lawyers for Union Bank, stating that $4.75 million is due, along with property taxes for 2008 through 2010.
“We have tried to work things out with the bank,” said Freedman, a Sequim attorney who was an unsuccessful candidate for Clallam County prosecuting attorney in 2010.
“Union Bank refuses to discuss anything with us,” said Freedman, who expects the foreclosure process will follow. “The bottom line to it, although we tried to work it out to everybody’s best interests, is they’re not interested.”
Attempts to contact Union Bank’s Everett office, the Northwest office where the default notice originated, were unsuccessful.
The notice dated April 5 states that failure to cure the alleged default within 30 days of the date of mailing of the notice may lead to a notice of trustee sale that could lead to a public auction of the property within the next two months.
Freedman said he and Grant have received no other documents from the bank since the
default notice.
Grant, the partner who created the first phase of the project that includes model homes constructed on Pinehurst Loop within eyeshot of the development’s clubhouse and pond, said the timing of the project was wrong since the real estate industry was in decline.
“Many real estate projects in the area are in trouble,” Grant said. “The value of this project is down.”
Clallam County records show deeds of trust for the development were signed in and after 2006.
Freedman said that, because the bank was not accepting settlement offers, the developers could not even work through offers they have received for lots to build homes.
“Obviously the bank is not interested in selling them,” Freedman said. “There’s nothing you can do when you are talking about a project like this, and with the economy the way it is. They have the ability to foreclose on it if that’s what they choose to do.”
Grant was the primary developer of the first phase of the subdivision.
A second phase was owned by both Grant and Freedman and planned with larger “estate lots” east of Keeler Road.
Freedman said a 55-lot third phase of small lots that he owned was planned for affordable housing.
“That’s just not going to happen,” he said.
Cottage homes 5,000-plus-square-foot lots in the first phase were priced between $69,900 and $79,000, but few have been sold.
The 95-lot first phase was built around a clubhouse and pond.
The clubhouse included a fireside room, a meeting room, a full kitchen, a health club and hot tubs.
Lots in the 85-lot second phase were priced from $59,900 to $199,900 and ranged in size from 9,000 to 43,000 square feet.
The subdivision is accessible via a heavily landscaped and irrigated entrance with a waterfall on Lofgrin Road, stretching from the east end of Washington Street.
Picnic areas and walking paths also were featured as part of the neighborhood plan, complete with deed restrictions.
“We still own it at this time, and yes, if somebody came in with an offer, we have the ability to take an offer,” Freedman said.
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Sequim-Dungeness Valley Editor Jeff Chew can be reached at 360-681-2391 or at jeff.chew@peninsuladailynews.com.