Penterra Condo Sales End

Another condominium project in Greenwood Village is suffering. Unlike the Landmark and its checkered issues with bankruptcy and new ownership, Penterra Condominiums have all but stopped selling due to a lawsuit filed by the Homeowners against the Builder, Developer and Owner.

Lenders have stopped making loans there.  The on-site sales office is closed. And potential buyers are being informed about the “Construction Defects Lawsuit” that has been filed against the Builder, Owner and Developer of the residential/office complex in Greenwood Village. Penterra is also home to the popular McCormick & Schmick’s seafood restaurant.

If it sounds as if the buildings must be a construction nightmare. But, that’s not necessarily the case.

What are these defects? They reportedly include cracking concrete and pending the underground garage. Unlike other lawsuits against large condominium projects, no  catastrophic stucco defects  are aledged.

This Penterra condo just closed for cash. Lenders have stopped making loans in the high rise condo complex.

Once a lawsuit is filed, a series of events can occur rendering resales virtually impossible. The only exception is for all cash transactions where the buyer has been disclosed about the potential liabilities. Lenders can decline any new mortgage loans in the complex until the litigation is resolved as they have with Penterra. Title companies can make requirements or exceptions for covered risks. Homeowner Association minutes will reference the lawsuits. Although, in the case of Penterra, the Homeowners Association minutes only briefly mentioned that the the firm of Sullivan & Sullivan had been retained by the HOA to pursue “Construction Defect”. Notice was also posted throughout the Building of a meeting to describe the situation. That meeting was held June 14 at the Penterra residential tower.

Sullivan & Sullivan has represented Homeowners Associations to pursue builders and developers for construction defects.

The on-site sales office operated by The Kentwood Company closed this week leaving about 60 of the 264 units still unsold. Buyers either couldn’t obtain financing or didn’t want to accept any potential liability as a result of the legal action.

Unfortunately, the only sales in Penterra in the near future will likely be only for cash. That will hurt Sellers looking for a more traditional “home loan buyer”.  Still, this could be a great opportunity for a cash buyer to buy a unit for less right now.