Madison Downtown Condo, Metropolitan-Place II facing forclosure

The real estate market isn’t just tough for home sellers and the sub-prime mortgage market.

The Capital Times reporting that the downtown Madison condo development, Metropolitan Place, or also known at Metro Place is being foreclosed on.

One of the highest-profile condominium projects in downtown Madison is facing a mortgage foreclosure, sending shock waves through the local real estate community and jeopardizing plans for a grocery cooperative to open there.

Metropolitan Place Phase II and developer Cliff Fisher owe some $26 million, according to a foreclosure filing in Dane County Circuit Court. Documents show that Buckingham LLC and Fisher have defaulted on loans from both LaSalle Bank of Milwaukee and Associated Bank of Madison.

“Buckingham is either insolvent or in imminent danger of insolvency and continues to dissipate LaSalle and Associated collateral,” the filing said.

The 164-unit, 13-story building at 333 W. Mifflin St. is open and partly occupied. The multiple listing service shows that 58 units there have been sold.

The downtown Madison condo development Metro Place II started construction in August of 2005, right at the peak of the real estate market. I wonder if karma came back on the developer here. In a press release that can be found on there web-site, www.Metropolitan-Place.com , the developer stated,

Recent news accounts indicate that competitor Randy Alexander’s project, Capitol West, located across the street from Metropolitan Place, is encountering financial problems, delays and a possible redesign.

“I want to assure the public that Metropolitan Place – Phase II is moving forward without any significant problems,” he said.