Investors seek answers as downtown condo project falters

Posted at: 12/01/2009 7:51 PM | Updated at: 12/02/2009 10:02 AM
By: Jeremy Jojola, Eyewitness News 4, and Kurt Christopher, KOB.com

Eyewitness News 4 has uncovered a financial mess in the heart of downtown Albuquerque after investors asked us to help get answers about the Anasazi Condos, sitting stagnant and unfinished for more than a year.

The $9 million, ten-story building is to feature high-end condos at the corner of Central Ave and 6th Street.  Now investors who put a deposit on the Anasazi Building’s unfinished condos want their money back.

But Eyewitness News 4 has learned that money is long gone and the developer is very much in debt.

Chris Burmeister invested not only $7,000 in a condo, he invested his future.

"So I sold my home and waited patiently for the property to be done.  The goal was to live in the property and live downtown and see the revitalization of the project as it goes,” said Burmeister.

But the bank backing the project failed and construction stopped.  Developer Vince Garcia blamed the economy and promised investors he’d get new financing to finish the project.  That was more than a year ago.

Burmeister wants his money back.

"That was probably my biggest issue, is claiming the economy did this...when there's two other viable construction projects that are downtown as we speak,” said Burmeister.

George Stephenson took out a loan to make his $7,500 deposit.  When he asked for it back, he was told it had already been spent.

"I definitely feel cheated in the sense,” said Stephenson. “Once the escrow money disappeared, I feel we investors should have been informed immediately."

Attorney Erika Anderson put a lien on the Anasazi project for another angry investor.

"Really, everybody wins if he's able to refinance, but otherwise, it's going to be difficult situation for everyone,” said Anderson.

But can Garcia get financing?  He told Eyewitness News 4 in May he was working hard to do so.  Since then he has had another property he owns, the Copper Square, foreclosed on after failing to pay a $7 million loan, according to court documents.

Court documents also show another property called the Quickel Building owned by Garcia right across the street from the Anasazi is also on the verge of foreclosure.

Eyewitness News 4 found 24 liens on the Anasazi Building, claimed by the construction company and other contractors and even the City of Albuquerque for outstanding trash and sewer bills.  Those liens total more than $2.9 million.  That could be a hard sell for any bank or investors looking to back the project.

Garcia declined to be interviewed for this story, but he wrote Eyewitness News 4 saying, “All earnest deposits were placed in escrow.  Deposits were then, by agreement, utilized in the development of the building.  Every purchaser signed off to these terms in the purchase agreement.”

Garcia says investors will be refunded if he gets new financing, but as said in May, he may have to turn to other investors rather than banks to get the project moving again.

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