Condominium Management Bellevue Wa

Condominium Management Bellevue Wa

Condominium Management Bellevue Wa

Posted on: December 26, 2011 - 12:58 am
by Admin

Gilmore Erickson, Chairman of the Board, and his son Alex Erickson, CEO of Grandpoint Community Builders, Inc., are shelving plans to build two luxury condominium complexes in downtown San Jose, California. In 2007, the Ericksons embarked upon an ambitious endeavor to build the structures, though their small family firm had no experience building high-rise condominiums. They began operating under a new name, Northpoint Development, to manage the projects.

Delmas Towers, LLC, a luxury Condominium Project In San Jose, California

Delmas Towers is a 72-unit , 8-10 story mid-rise slated to be built within the block of W. San Carlos Street, Delmas Avenue and Auzerais Avenue. The land is comprised of several parcels, including two with single family homes, which were expected to be joined together and rezoned by the City of San Jose. A second phase for 85 more units was planned for the area along Auzerais Avenue, which intersects Delmas. The soil was, and still is, contaminated from a commercial enterprise that Northpoint never completely cleaned.

Northpoint Development Solicited Private Investors Through NRI (National Realty Investment Club) of Pleasanton, California

Gilmore and Alex Erickson obtained initial funding for the design phases of Delmas Towers and Fifth Street Tower from private lenders. They enlisted National Real Estate Investment Club, Inc. of Pleasanton, California, a real estate brokerage, to hold seminars in California and Nevada to offer the lending opportunity to private parties. Northpoint Development raised $2,600,000 from 24 lenders and paid NRI a commission on each loan.

Loans for a minimum of $100,000 were solicited that would yield a high rate of 50% interest during a term of one year, which would then be paid off by a construction loan. The Ericksons added a guarantee clause to each loan, backed by the Erickson Family Trust which had assets equaling $38,000,000. Permits, architectural plans and construction financing for Delmas Towers should have been completed by January 2008 and all private lenders investing in the projects paid back soon afterward.

Delmas Towers, LLC Unravels

Since 2007, things have not gone well for Delmas Towers, LLC, and it declared Chapter 11 bankruptcy on September 29, 2009. Gilmore Erickson also declared Chapter 13 bankruptcy in April 2009. Among others, he lists Ujwal Bafna, owner of one of the parcels on Delmas Avenue, as a creditor for $1,000,000.

The title policy for Delmas Towers includes loans for $250,000 to Ujwal Bafna, and another loan for $320,000 to Digby Homer. Three other loans totaling 3.8 million were secured with Sterling Pacific Lending, Inc. Sterling Pacific was later listed as a creditor for a $4,500,000 "personal loan" in Gilmore Erickson's bankruptcy. Records as to where all the borrowed money was spent since 2007 are being investigated.