Save Money in this Sunday's paper

comments

Foreclosures filed against 2 Carolina Trail courses

A Canadian lender has filed to foreclose on two Charlotte-area golf courses that are part of the troubled Carolina Trail group, weeks after their owner told the Observer he expected the courses would soon be sold.

The filings in Mecklenburg County Superior Court against Tradition Golf Club and The Divide Golf Club were made in mid-January, on behalf of Romspen, a Toronto-based mortgage lender.

A hearing is set for Feb. 20.

According to the foreclosure documents filed this month against The Tradition and The Divide, the clubs owe more than $26 million. The loan hasn’t been repaid, despite a letter sent earlier this month demanding full payment, according to the filings.

Although foreclosure actions haven’t been filed against them, Waterford Golf Club, Birkdale Golf Club and Highland Creek are also named as borrowers in the same loan, as are two companies that appear to own golf courses in Texas and Arizona.

The golf courses’ owner has agreed not to contest the foreclosure process, according to the filings.

That’s consistent with what Carolina Trail owner Jeff Silverstein told the Observer in December, when he said he had reached an agreement with his lenders.

The lender will seek to sell the courses after the court hearing next month, according to the documents.

Romspen’s mortgage investment fund contains assets of more than $1 billion, according to the company. The firm specializes in lending to commercial and industrial properties.

The Carolina Trail used to be a group of seven golf courses, including Birkdale, Highland Creek, The Divide, The Tradition, Skybrook, Charlotte Golf Links and Waterford in Rock Hill.

The clubs’ financial troubles first came to light in July, when Birkdale was briefly shuttered by authorities over an unpaid tax bill.

Since then, the clubs have been dogged by complaints from employees about unpaid wages.

In August, Skybrook and Charlotte Golf Links were taken from the Carolina Trail by a judge, after lender Hunting Dog Capital tried to retrieve nearly $7 million in loans.

Virigina-based Traditional Golf Properties has been managing the five remaining courses since late November, while Silverstein’s company retains ownership. Observer staff researcher Maria David contributed.

Portillo: 704-358-5041; Twitter: @ESPortillo
Hide Comments

This affects comments on all stories.

Cancel OK

The Charlotte Observer welcomes your comments on news of the day. The more voices engaged in conversation, the better for us all, but do keep it civil. Please refrain from profanity, obscenity, spam, name-calling or attacking others for their views.

Have a news tip? You can send it to a local news editor; email local@charlotteobserver.com to send us your tip - or - consider joining the Public Insight Network and become a source for The Charlotte Observer.

  Read more



Hide Comments

This affects comments on all stories.

Cancel OK

The Charlotte Observer welcomes your comments on news of the day. The more voices engaged in conversation, the better for us all, but do keep it civil. Please refrain from profanity, obscenity, spam, name-calling or attacking others for their views.

Have a news tip? You can send it to a local news editor; email local@charlotteobserver.com to send us your tip - or - consider joining the Public Insight Network and become a source for The Charlotte Observer.

  Read more


Quick Job Search
Salary Databases