Business
NBSC takes steps to foreclose on The Charleston Club, parts of BB&T Building
By Steve Ferber
Mar 11, 2010 - 10:38:03 AM

Two Daniel Island properties developed by Joe Land and Stu Cass – the Charleston Club and parts of the BB&T Building – have both gone into receivership, with NBSC taking steps to foreclose on both properties, according to Charles Carmody, the court-appointed receiver for both properties.

As receiver, Carmody explained, it will be his job to maintain the property and "make sure that the value doesn’t go down" until the bank assumes ownership. Carmody is the broker-in-charge and managing partner of CB Richard Ellis Carmody, a commercial real estate firm. 

In the case of The Charleston Club – a group of eight residential condominium units atop the Ryland Square Building on Daniel Island – Carmody will spend the next several weeks assessing the value of the condominiums, with plans to present the court with a plan to sell the units. If either the lender (NBSC) or borrower (Land/Cass) were to contest the sale, said Carmody, it’s unlikely that the court would approve the plan. In that case, the foreclosure proceedings would move forward, a process that could take up to six months. Once NBSC assumes ownership, it is expected that NBSC would put the eight condominiums up for sale. The eight three-bedroom units range from 2,200-2,800 square feet. 

The Charleston Club was designed to create Charleston’s first private residence club. Initially, the eight three-bedroom condominiums were up for sale, but when no sales took place, Land and Cass decided to shift gears and sell fractional ownerships. However, no fractional ownerships were sold, and when Land and Cass stopped making payments, said Carmody, NBSC initiated foreclosure proceedings and requested that the court put a receiver in place, which they did.

In the case of the BB&T building, Carmody is the receiver for the borrower’s portion of the BB&T building (parts of the building complex are owned by other entities). Here again, Carmody anticipates assessing the entities and proposing a plan to the court. In the meantime, Carmody will continue to collect rental rates from existing tenants and use these funds to cover expenses. (Note: in the case of The Charleston Club, there’s no revenue coming in, so if Carmody, as receiver, needs cash to maintain the property, "I’ll have to make a request to the bank, to fund it".)