Foreclosure Clouds Darken Veranda Park In Orlando

Developer, Kevin Azzouz is known for his efforts to improve upon MetroWest. It involves a budget of $400 million village centre with an Italian theme named Veranda Park. Today foreclosure clouds are darkening the skies over Veranda Park. There are grave financial doubts about the condos included in the project.

Azzouz is facing four separate foreclosure lawsuits initiated by Wachovia bank. There are other companies under his aegis also included in the foreclosure suits. The amount involved is $51 million as per court documents of Orlando. At risk is the condo property comprising of 144 units bordering Hiawassee Road, named The Residences.

Azzouz wanted to create a new kind of urban community complete with Italian piazza outlets. He now blames Wachovia for pouring cold water on the development plans. The bank refused to renew the construction loans earlier in the year. “They’re playing incredible hardball with us” said Azzouz. If the bank is threatening foreclosure then Azzouz too has cards in his hands. “The easiest thing for me to do is to put the keys (of the condos) in a box, give it to the bank.” Considering the condition of the real estate market and the mood of government as well as the public, the suggestion should not be very palatable to the lender. Azzouz stresses that the position of the company is strong and timely payments are being made. He further adds that by filing for bankruptcy he could put the bank in trouble. Therefore it is to the interest of the bank to “change its mind.”

Azzouz has become a typical victim of the pale economy in Central Florida. There are many other developers like him who had peaked during the boom but now they are facing similar problems. One such is Cameron Kuhn. He was compelled to auction many of his units in Plaza complex situated on Orange Avenue. A Dutch lender from Church Street foreclosed upon him and took over the building earlier this year. The lender is now having difficulty in finishing the project meant for multifarious use.

In the present scenario lenders are unwilling to continue with investments in a falling market. A spokesperson of Wachovia refused on comment on the activities of the bank regarding foreclosures. It is the fourth largest bank in the country and is now going back on real estate loans after showing a loss of $707 during the first quarter.