Tuesday, July 29, 2008

Salpare Bay Condos Heads For Foreclosure

From the Portland Business Journal:

Salpare Bay offered wealthy buyers the chance to live in luxurious waterside condominiums clustered around a private harbor offering moorage with wireless Internet access for their boats. The Hayden Island project's tag line was "Your Ship Has Come In (and We Have A Place To Put It)." Salpare Bay's seven buildings were to bring 204 units, with prices starting in the $500,000 range and climbing to more than $1 million.
Today, the Salpare Bay site is in shambles. Construction stopped almost a year ago and rebar pokes out from skeletal walls while weeds grow in the sandy soil. Few associated with the once high-flying project are willing to explain what went wrong. But public records, including a multi-million dollar lawsuit, suggest financing for the $100 million project fell apart almost as soon as ground broke.

Although the developers secured a construction loan for Salpare Bay, they stopped paying their contractor almost as soon as work started, suggesting the financing fell through.
The Salpare Bay story began on Sept. 19, 2000, when the developers paid $1.375 million for property at 499 N.E. Tomahawk Island Drive on the east end of Hayden Island, according to Multnomah County property records. On June 7, 2002, they paid $2.16 million for another 27 acres bordering the original site on the north.

Visitors to the construction site will find a well-maintained and landscaped sales office but no sales staff. Salpare Bay's marina was completed last fall by a separate contractor, Bellingham Marine. A worker at the tiki-styled dock said about 40 of the 194 slips are leased.