Condo complex goes back to lender [Southern California]
A 280-unit Oceanside condominium complex from one of the county’s most prolific condo converters has been taken over by its largest lender.
Developer Maisel-Presley agreed to hand the keys to the River Oaks project over to Bank of America last month after the bank initiated a foreclosure proceeding, according to court records. The bank lent $48 million on the project in July 2005. It is owed about $35 million.
Though a couple of small conversions have defaulted on their loans, this is believed to be the first large project in recent years to go back to its lender in San Diego County, based on a search of county deed records by The San Diego Union Tribune.
A call to Maisel-Presley was not returned. But John Smaha, a lawyer who represented the firm in the River Oaks matter, said the bank and developer had a dispute over continued funding for renovation after a number of suppliers filed mechanic’s liens against the property.