Saranac Brookfield Homes Going Bankrupt? (Manassas, Waverly: new house, neighborhoods, to buy)

[conanicut]

Has anyone heard that the Saranac development was going bankrupt? A friend of mine heard that from a realtor friend of his and we are wondering if its true??

[fdeitz]

I doubt it. I live in Morris Farm which is across Glenkirk Rd. from Saranac and also built predominantly by Brookfield. At Saranac, Brookfield just introduced new lower priced models in the last few weeks. That doesn't seem like a sign that they are going bankrupt, and at Morris Farm they just started building a new house a few streets down from my house.

[HEATHER72]

I was going to say the exact same thing. That has to be a rumor... a rumor that's wrong. Brookfield knows how to adjust with the change of market. Like fdeitz said, Brookfield just came out with smaller and lower priced homes for Saranac. So it should be building out faster. But then you get into the issue of the homes aren't going to be these big luxury homes as originally planned. I was looking at the floorplans and some are similar and some identical to those in Morris Farm, but just with a higher price tag. For example, the Waverly in Morris Farm is $400K. The same model with a different name, Hamilton, in Saranac is $475K. Did you BUY in Saranac?

[fdeitz]

Personally, I wouldn't buy one of the models in Saranac that are equivalent to a Morris Farm model - all they've done is slap a new exterior on the same floorplan and increased the price about 20%. I wonder how those new models are going to sell.

[HEATHER72]

Originally Posted by fdeitz

Personally, I wouldn't buy one of the models in Saranac that are equivalent to a Morris Farm model - all they've done is slap a new exterior on the same floorplan and increased the price about 20%. I wonder how those new models are going to sell.

I was thinking the exact same thing. That's crazy considering the neighborhoods are right beside one another.

[conanicut]

Thanks for all your responses. I hope its a rumor! We haven't bought yet but have been seriously considering. We love the style of the homes. I think the reason it costs more is because Saranac is closer to the lake than Morris- the Saranac development has direct access to Lake Manassas. It always costs more the closer you are to water.

[HEATHER72]

Originally Posted by conanicut

Thanks for all your responses. I hope its a rumor! We haven't bought yet but have been seriously considering. We love the style of the homes. I think the reason it costs more is because Saranac is closer to the lake than Morris- the Saranac development has direct access to Lake Manassas. It always costs more the closer you are to water.

Well not like you can do anything on the water though. Not many lots can even see the water if at all? Just something to think about.

[Mike From NIU]

I wouldn't worry about the rumors unless someone can substantiate that claim. With that said, one development can enter bankruptcy without affecting the overall developer. Most of these communities are set up as individual LLCs. One Brookfield LLC can go under and it won't touch the other 25 Brookfield LLC communities. If there are legitimate reasons to worry (signs of unfinished houses, particularly high pressure to buy now and not in a few weeks, etc.), you as a customer can ask to see financial statements or other summary of financial condition. If they say no, you have a decision to make. However, I doubt they would say okay and then produce a false statement, because otherwise they are at risk of being charged with fraud if the community subsequently folds.

Like I said, I don't want to lend any weight to rumors. But developers do structure themselves to avoid being completely ruined by one or two bad developments.

[conanicut]

Some lots you can see the water and and some lots are lakefront but they aren't selling the lakefront ones yet. You can definitely walk down to the waterfront the development has tons of walking trails, picnic areas with a firepit by the lake and I think there is also a covered overlook that can be used for family functions. So there are some added benefits to the development. But you are right that you can't do much on the lake itself except look at it

[conanicut]

Thanks Mike from NIU! That's helpful to know.