The Bloomsbury Estates, which sits at the corner of Hargett Street and Boylan Avenue, is the subject of a string of lawsuits against the developer.
A bank filed a lawsuit in late January against John Bruckel and David Iauco, developers of Bloomsbury Estates. The seven story estate is perched on the corner of Boylan Avenue and Hargett Street overlooking Raleigh’s cityscape and the convention center’s prismatic oak tree.
Despite Bloomsbury Estates’ striking Second Empire design and downtown location, some potential buyers have shown signs of disappointment. Three complaints have been filed against Brucknell since construction of the condominiums began. Two are still pending and one has been voluntarily dismissed. And then there is the most recent complaint.
The lawsuit, filed in Wake County’s Superior Court, demands payment in full on a $17 million loan from Fifth-Third Bank for the construction of a 62-unit condominium structure. The suit maintains that Iauco, of South Carolina, only shares liability for five-million dollars of the loan, while Bruckell is, allegedly, fully liable.
The other three complaints were brought against Bloomsbury and its developers by people who say they deposited money for Bloomsbury Estates condos. Each demands full reimbursement of moneys deposited and alleges that Bruckell informed the plaintiffs construction of the building would be complete by late 2007. Construction was not complete until the summer of 2009.
Bloomsbury’s Bruckell refused to comment on the lawsuits. Fifth-Third’s attorney, Christian Kennedy, has not returned the Record’s call.
In January 2009, the Triangle Business Journal quoted Mr. Bruckell as saying that 37 units in Bloomsbury Estates were under contract. Currently, the Triangle Multiple Listing Service lists four of the Bloomsbury Estate units with sales pending.
Sitting across the street from Bloomsbury Estates enjoying a beer at the Boylan Bridge Brewpub, the vacant windows and empty parking lot of the estates seem to tell the story. Crossing Boylan Avenue and checking the digital register of occupants at Bloomsbury Estates, there are nine contacts listed, one of which is Bruckell and one a Bloomsbury listing real estate agent, Mike Richmond.
The real estate agent has not yet returned the Record’s call as to just how many of the Bloomsbury condos have sold, but in October the N&O reported that number as zero. A property search of 710 Indepence Place on the Wake County Government website shows the only owner there to be Bloomsbury’s corporation.