Local group acquires unbuilt portion of the Greenway Farm development at foreclosure auction

A story in yesterday's Baltimore Sun reported that a group of local investors, which previously owned the 85 acres next to the Bulle Rock golf course, outbid at least one other party to regain possession of the land at the foreclosure auction held Wednesday.

According to the story:

"The group's $21 million bid was only three-quarters of the debt, which totaled about $28 million."

The group says they plan to move ahead with a housing development planned for the land, which is close to the Aberdeen Proving Ground. APG is expected to get an influx of more than 8,000 jobs in the next few years due to BRAC. Despite the expected increase in demand for housing BRAC is expected to bring, the nationwide housing slump convinced property's developer decided not to go ahead with its development plans.

"Acacia Capital Corp. bought the property to develop it for K. Hovnanian. After the booming market burst, the builder decided not to exercise its option to purchase the final two phases, approved for 414 homes. A. Hugo DeCesaris, a regional president for K. Hovnanian, said in a statement in April that both his company and Acacia believe the land is now worth less than the price originally agreed upon, but the lenders 'were unwilling to resolve the matter short of foreclosure.'"

The new owners are well-known locally. The group includes:

"Ronald W. Benfield, who runs a real estate appraisal company; Charles Benfield, founder of Benfield Electric, an electrical contracting firm; and Chris Michel, a land developer."

Greenway Farm foreclosure rescheduled for June 13

This item ran in today's Baltimore Sun:

"Originally scheduled for this morning, the Greenway Farm auction has been
delayed until June 13. It is to be held at Beechtree Golf Club in Aberdeen.

The auction does not include the first phase of the development, which
is under construction by national builder K. Hovnanian Homes. Auctioneer A.J.
Billig & Co. says the rest of Greenway Farm -- about 85 acres, approved for
414 homes -- is up for grabs. The land is next to Bulle Rock golf course in
Havre de Grace."

BRAC's promise to attract thousands to Harford County wasn't enough to keep one national developer in the game at Bulle Rock

It seems the possibility of 30,000 people moving to Harford County as a result of BRAC's moving jobs from Fort Monmouth, N.J. to Aberdeen Proving Ground wasn't enough to convince home builder K. Hovnanian Homes to hold onto its plans to put 690 homes on a parcel of land at Bulle Rock, according to a story in today's Baltimore Sun.

The first phase of the development is already under construction, the story said, and will be built. However, about 85 acres - approved for 414 homes - is to be auctioned May 16 at the golf course clubhouse. The story said the debt on the land, which Acacia Capital Corp. bought to develop for K. Hovnanian Homes, is about $28 million.

". . . the builder said yesterday that it had changed its plans because the
group of local investors that financed the deal - the original owners - wanted
more for the land than K. Hovnanian or the developer thought it was worth."

According to the story, a large portion of the new home project:

". . . is scheduled for foreclosure auction next month, an apparent victim
of the sharp slowdown in the housing market that has hurt builders across the
country. Lenders filed to foreclose on the undeveloped part of the upscale Greenway Farm, next to Bulle Rock golf
course in Havre de Grace, after its
owner fell into default."

"It's part of a wave of foreclosures that has hit developers as well as
homeowners, particularly in the suburbs and exurbs."