American Invsco, the financially strapped condominium converter, has defaulted on millions of dollars in loans at the Promenade in Bethesda, a luxury high-rise complex where Invsco has had trouble selling cooperative apartment units, a spokesman at Chase Manhattan Bank has confirmed.
The bank has several options in this situation, including foreclosing on the property and taking over ownership. It also could renegotiate financing for the developer or give the developer more time to find alternative financing or a buyer for its remaining share of the project. The bank spokesman declined to say what Chase intends to do now.
Officials at Invsco headquarters in Chicago did not return a reporter's phone calls this week.
A group of apartment owners at the Promenade, meanwhile, has charged that Invsco already has abandoned management of the project and say they believe the developer will not be able to pay the complex's bills for basic operation and maintenance this month, possibly leaving them with the liabilities.
The group has filed suit in Montgomery County Circuit Court asking for a court-appointed receiver to take over operation of the complex from Invsco, including financial management. A hearing on that request has been set for July 12, said the lawyer for the owners' group, Gerry Levenberg.