Over 120 Foreclosure for Sale Condos in Hartford

A total of 129 condo units in Hartford, Connecticut are expected to become foreclosure for sale after lender Wells Fargo Bank Minnesota filed a foreclosure case in April against Bushnell Regency LLC which purchased the condo units and which has been renting them out to tenants.

The 129 condo units represent over two-thirds of the 180 units of the Hartford condo complex named Bushnell on the Park. Bushnell failed to pay its monthly loan payments of $75,000 to Wells Fargo Bank since November last year.

In 2002, Bushnell took out a commercial property loan of $12.8 million from Wells Fargo to acquire the condo complex for $15.6 million. In April, when the bank filed the foreclosure case, the amount due was $12.8 million, excluding late charges, interests and other fees, based on the papers filed with the Hartford Superior Court. In subsequent documents filed with the court, the total amount owed has already reached $14.5 million.

Bushnell on the Park was constructed in 1969, as the state and the city spent money to develop downtown Hartford to attract more residents in partnership with private developers. The development efforts have been continuing as newer apartment complexes are being constructed. The newer downtown apartment complexes include the Trumbull on the Park, Lofts at Main and Temple and Hartford 21.

According to Hartford apartment businessman Arthur Anderson, despite its age, Bushnell on the Park has been successful in getting tenants. He contended that the owners had cash flow difficulties and were unable to get loan refinancing. He added that the failure is more of a result of the recession than on the performance of the building.

Reporters could not pinpoint the real cause of the financial difficulties as representatives of various parties refused to divulge further information. Based on city real estate records, Bushnell Regency also failed to pay its taxes for other condo units that it owns and runs in the city. City officials said Bushnell has filed tax appeals.

Meanwhile, Marty Kenny, developer of the nearby Trumbull on the Park, said that the occupancy of the Bushnell complex is high. He contended that the problem may have been driven by the high acquisition cost and the big amount of loan it was taken to acquire the building. He said that operational expenses are also debilitating.

Another Hartford developer, Phil Schonberger, supported Kenny’s analysis. He explained that a lot of commercial loans taken out during the boom were based on rosy projections.

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