Cliffs developer facing foreclosure on 100 properties
Friday, 08 April 2011
Written by James Richardson
According to multiple reports, developer Jim Anthony is facing foreclosure on about 100 Cliffs Communities' properties. Anthony says he is behind on a $20 million payment to Worthington Hyde Partners, a Norcross, Georgia-based real estate firm.
The issue affects approximately 15 percent of the lots in the various Cliffs properties.
Talks are underway to restructure the note with more favorable terms, including a lower interest rate; however, as part of South Carolina's foreclosure process, Worthington has filed a complaint against Anthony's company.
On its website, Worthington says that they provided a $20 million first mortgage to The Cliffs that was “secured by a portfolio of highly amenitized lake lots and raw land in an environment where traditional sources of financing had become particularly scarce”.
Last April, Anthony raised more than $60 million from Cliffs property owners who loaned the money to complete golf course amenities.
In January of this year, Anthony said that he entered a joint venture with a Dallas, Texas, firm that would allow Cliffs Communities, Inc. to reduce its debt, increase cash flow and provide capital for ongoing expenses.
Anthony said that none of the golf courses would be affected by any foreclosure.
Founded in 1991, Cliffs Communities, Inc. owns The Cliffs at Glassy, The Cliffs at Mountain Park and Cliffs Valley in Greenville County, as well as the Cliffs at Keowee and the Cliffs at Walnut Cove. Another community, the Cliffs at High Carolina features a Tiger Woods designed golf course and is currently under construction.