Investors consider lawsuit

CHARLOTTE, N.C. -- It took only a matter of minutes Tuesday morning for a high profile high-rise in uptown Charlotte to go into foreclosure. 

The Park is partially finished at 222 South Caldwell Street, and according to sources, was over 75 percent sold. Construction stalled in the spring, and Tuesday’s hearing shed new light on why.

Court documents show the developers of The Park, including Peter Verna & Associates, borrowed more than $30 million from Wisconsin based BB Syndication Services, Inc. in February of 2006. The two-year note was due this past February, and that is when the lender claims default of payment occurred.

In the foreclosure hearing, nervous investors listened cautiously.

“We just want our money back at this point,” said Michelle Ricci who signed a contract on a unit with two other couples in July 2004. 

Ricci came to the courthouse optimistic, saying, “I was hoping that they would prove that the funding that they’ve been talking about for months and months, saying they were close to securing funding, that they would have proved that be the case today but that did not happen.”

The foreclosure proceedings were uncontested, meaning no one from the developer asked to take part in the hearing.

Carl Felson, who works for Verna, was in the hearing room. Afterward, he did not want to comment. When asked specifically if the company would be trying to buy the property back, he answered “yes.”

A foreclosure auction is set for early next month. At that time the property will be sold to the highest bidder.

 Michelle Ricci plans to see this process through.

“We will be here. Yes, we will," she said.

Ricci and others are now looking at possible legal action. Because of WCNC’s ongoing coverage of this story, she’s gotten contacted by several buyers who are also looking for what’s next.

“I’ve had other buyers contact me in the hopes of possibly banding together and possibly having to, at this point, look into doing a class action lawsuit,” said Ricci.

Ricci and the fellow investors on her unit are out about $61,000 in deposits and upgrades. Raphael and Debbie Goldstein are out $35,000. 

“You don’t know what the outcome is going to be so it’s really scary,” Goldstein said.

He is hopeful a new buyer picks up the project and finishes it to his liking. In the meantime, they’ll join forces with other buyers to make sure their interests are protected.

“We are, at this time, going to have to get together with the other buyers and see about consulting an attorney and see what our alternatives,” he said.

His wife Debbie adds, “I’m very positive and I hope for a happy ending for everyone.”