If the development of Preston Lake had taken place just five years earlier, it might have been a much greater, faster, happier success story. 

Given its timing, however, Preston Lake was developed and constructed at a very slow rate, which recently reached a significant milestone when Wells Fargo foreclosed on the remaining developed lots at Preston Lake.  Why did it happen?  It could have been the decline in the housing market....or the decline in the national economy....or that the developer's bank (Wachovia) went out of business....or many other reasons. 

Regardless of the cause, the development and construction of Preston Lake was much slower than anticipated, and is now in a state of limbo.  Here's a re-cap of where things are at Preston Lake, with a few bits of new information:

Homeowners Association:  The Preston Lake Homeowners Association is still controlled by the developer, which is now effectively Wells Fargo.  For now, however, the on-the-ground association management is being handled by a Harrisonburg-based association management company, and thus far it does seem as if any services to residents will be interrupted, nor will dues increase.

Ownership of the Land:  The undeveloped residential lots all transferred to Wells Fargo (or REDUS VA HOUSING, LLC as it appears at the courthouse).  Read more.

Ownership of the 4 rowhouses:  Most people attending the foreclosure auction were surprised to hear the announcement that morning that separate from the auction of all of the undeveloped lots, the bank would be auctioning off four rowhouses at various states of completion.  Since potential bidders were not prepared to consider purchasing a rowhouse, all four of these properties were bought back by Wells Fargo.  Further details follow....

• Lot 9C:  This rowhouse is completely constructed, and was actually used as a temporary residence for a couple that then later bought a rowhouse at Preston Lake.  Wells Fargo contracted (at the trustee sale) to buy this rowhouse for $270,600 and it transferred to them as of late February.  Presumably, this property will soon be listed for sale with Wells Fargo as the seller.
   
  
• Lot 10B:  This rowhouse was framed, and the exterior shell was complete, but neither the insulation nor the rough mechanicals were installed.  Wells Fargo contracted (at the trustee sale) to buy this rowhouse for $39,960, however another party (Southern Classic Inc) later contracted to buy it instead, and closed on the purchase a few weeks ago (March 4th, 2011).
   
  
• Lot 11C: This rowhouse was complete through drywall, but had a variety of trimwork, flooring, and other finishing work yet to be completed.  Wells Fargo contracted  (at the trustee sale) to buy this rowhouse for $157,760, however another party (Southern Classic Inc) later contracted to buy it instead, and closed on the purchase a few weeks ago (March 4th, 2011).
   
  
• Lot 12C:  This rowhouse was complete through drywall, and rough mechanicals, and insulation, but the entire remainder of the townhouse was yet to be constructed.  Wells Fargo contracted (at the trustee sale) to buy this rowhouse for $79,080, however another party (Southern Classic Inc) later contracted to buy it instead, and closed on the purchase a few weeks ago (March 4th, 2011).

Southern Classic, Inc:  The company that purchased the three yet-to-be-finished rowhouses seems to be a company based out of Crozet/Charlottesville.  Presumably, Southern Classic will be finishing the rowhouses and offering them for sale.  Southern Classics is an Earthcraft certified builder, and is involved in developing several smaller communities including:

• Foxchase Landing (Charlottesville)
• Fair Hill Estates (Crozet)

Current Listings:  Three re-sale properties are currently on the market.  Click here for details.
  

Receive Updates by Email

Subscribe

Recent Articles:

• There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase
• Home Sales By Price Range In The City Of Harrisonburg
• Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later?
• How Much Slower Are The Winter Months In Our Local Housing Market?
• Rockingham County and New Home Sales Drive Surge in Area Housing Market
• Find The Balance Between Optimistic And Realistic Home Pricing
• Room Size Is Difficult To Understand Solely From Real Estate Photos
• How Much Would You Value Not Having To Prepare Your Home For Showings?
• One Out Of Four Homes Is Taking Longer Than A Month To Sell
• Consider The Cost Of Your Planned Renovations When Planning Your Offer

Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com