Auckland luxury apartment development disputed mortgage sale

Apartments in the planned Auckland complex are still being marketed, although the development site is ready for a mortgage sale.

Bayleys Auckland Central has been advertising the 406 square meter Parnell site as a rare opportunity to purchase an approved development site in one of Auckland’s prime residential locations.

It was marketing the Farnham Street property for sale via a mortgage bid on Realestate.co.nz and TradeMe, with the bid closing on May 31.

But, at the same time, there were separate ads for apartments at The Farnham, a 14-unit, six-level luxury condominium complex currently planned for the site, on both properties.

Read more:
15 unfinished townhouse development sold for $9 million at mortgage auction
*Second home development in Auckland goes to mortgage sale
* Auckland development with 15 for sale townhouses for sale

One of the agents included in these ads, Bobby McMillan of Barfoot & Thompson Parnell, said she was aware that the site was being marketed as a mortgage sale, and had inquired about the situation with developer Jobrook Consulting.

“The developer feels that the lender has outgrown their position by putting it up for sale before it was needed.

“My understanding is that nothing should have happened before the end of May as the developer is working on resolving the situation and moving forward with development.”

An artist's impression of the planned Farnham apartment complex in Parnell.
supplied/stuff

An artist’s impression of the planned Farnham apartment complex in Parnell.

MacMillan said the agency still owns apartments in the announced project, and will continue to market them until it has definitive answers about what was going on.

She said the agency sold about two-thirds of the apartments. The Trade Me ad suggested there were six apartments left.

JoBrook Consulting director Ian Meuli said the site should not have been up for foreclosure yet.

He said a disagreement with the lender over the financing terms led him to seek refinancing, but he had until May 30 to arrange that.

“I am on track to sort out the refinancing and, technically speaking, there should be no mortgage sale unless the funds are raised on May 30th.”

The situation, he said, was complicated by the lender’s decision to market the site to the foreclosure sale too early.

The site is for sale on Farnham Street in Parnell which has been put up for foreclosed sale.

supplied/stuff

The site is for sale in Farnham Street in Parnell which has been put up for sale for mortgage.

Bayleys agent Damian Bulik, who was one of the salespeople for the pawnshop, said he was unsure of the circumstances surrounding the sale.

“We are only dealing with the mortgagee, not the current owner, and we have been instructed to put it up for sale by the mortgagee. We cannot provide any additional information on top of that.”

Several real estate developments in Auckland have been put up for sale on mortgage recently.

One was a 15 townhouse in Sunnynook Central, the other was a Panmure development with 12 balcony homes and a four-story apartment block.

After Sunnynook Central went into the mortgage sale, Auckland real estate developer David Whitburn said he expects more developments to face mortgage sales due to cost increases, delays in building materials and a tighter lending environment.

%d bloggers like this: