Heritage Highgate: Wait for Release Prices to Go Down Before Buying
Heritage Highgate and Heritage Residential, developers in New Jersey, recently filed for bankruptcy on Jan 20. In first day motions, the companies sought authorization to sell certain properties free and clear of liens, i.e., seeking authorization for the ability to deliver clean title to buyers.
What is interesting is that the developers and their main lender, Wachovia, had been unable to reach an agreement on the unit release price for future sales. The companies had been requesting a reduction in release prices from Wachovia, in order to pay their subcontractors and suppliers. Since it’s possible that release prices are likely to go down in the near future as negotiations continue under the auspices of bankruptcy protection, potential buyers might do well to wait a little till the air clears.
