The Preston Manor subdivision consists of 448 finished lots. United Development Funding, L.P. (“UDF”) had a lien on 332 vacant finished lots and foreclosed on the borrowers note in September 2007. The current owner is UDF PM, LLC a 100% subsidiary of UDF.
The original borrower started an 114,000 square foot amenity center with a $3.5M vertical construction loan. Within three months of starting construction the borrower came forward with a proposed change order for an additional $3M. Construction was stopped to allow a thorough review of cost estimates, bids, marketing plan, operations pro forma and market area demographics. The reviews discovered that the cost to finish would be greater than the original loan and the proposed change order. Subsequent to those reviews the vertical lender declined to fund additional construction cost and allowed the borrower additional time to secure a new vertical construction loan. Due to the same conclusions that UDF came
Our Future Plan
Centurion American Development Group (www.centurionamerican.com
) has been retained to revive the Preston Manor development project. “Centurion” is the largest active developer in North Texas, and have been in business developing residential communities since 1990