Riverwalk not the only project Diversified ditched

Riverwalk, with its last 19 unsold units going into foreclosure, isn’t the only construction project abandoned by Diversified Communities.

I came across this story in the Triangle Business Journal (Raleigh, N.C.) from last month about L’Hermitage, a project where Diversified had planned 125 condos, 75 townhomes and 35 single-family units. Only two were sold and barely two dozen completed in all. Work stopped in spring 2008 and the abandoned project is described as “the poster child for the housing industry’s downfall.

Spring 2008 was about the time Diversified parted ways with DeBartolo Development on the Town Center project proposed for the City Hall property some three years ago.

Some key passages from the story:

— “Diversified Communities…walked away from the project in 2008, leaving two dozen homes in various stages of construction. Diversified…built the roads, sewer lines, water lines and power infrastructure…as well as a 5,000-square-foot clubhouse with a swimming pool and tennis court.

— “Diversified had sold two homes in the community for more than $480,000 each and had started construction on 12 condominiums and 11 other single-family homes when work stopped. Some homes are finished, others are about halfway complete. “It’s been more than two years since I’ve spoken with anyone at Diversified,” Apex Town Manager Bruce Radford said. “They walked away from millions in ground there already.”

— “In its unfinished state, the property has become the victim of vandals and neglect. A 3,200-square-foot unfinished home in L’Hermitage was destroyed by fire in mid-September. The clubhouse was severely damaged when a water pipe burst and flooded the building.”

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0 thoughts on “Riverwalk not the only project Diversified ditched”

  1. The Star-Ledger story on this makes you realize how bad the situation is for those who bought in Riverwalk, and how hard it will be to get people to buy what remains. The way I understand it, new buyers would owe the city a big chunk of change at closing.In a related note, a property just around the corner, across from the church on Irving St., is a good example of price declines in the neighborhood. I've been watching it for a while out of curiosity, and I'm certain it started out asking price at over $300K. It's now listed at $149k.

  2. MLS# 2708567 The idea that anyone could ever dream this house would be worth over $300K is stunning evidence of what a bubble we have just experienced. This will be a long, long hangover.

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