In a long-anticipated development, Corus Bancshares, which owns several severely distressed condominium developments nationwide including Reno’s excellent Montage project, has been seized by federal regulators.
Bank seizures have a habit of occurring after close of news cycle on a Friday. Speculation has been rampant regarding the fate of the company’s projects, which sit largely abandoned in housing markets once thought to be red hot, in states like Florida and Nevada.
Reno will be likely impacted by whatever becomes of the company. The Montage project has failed to fill many units. Housing built during the bubble of the first decade of the twenty-first century was terribly overpriced. The building until now has continued to be managed by its principal developer, Fernando Leal, who according to some accounts has continued to work aggressively to fill the building.
It will be interesting to see which entity owns up in possession of Corus’ troubled assets.
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