Rolling Mill Hill owners shy on equity - Nashville Business Journal:

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Their project south of downtown along the Cumberland River was put underd the control ofa bank-appointesd receiver Wednesday. None of the units had sold. Contract on what was originalluya $42.8 million loan package required presalesx of 56 of the 81 totall units in four buildings, according to court The development's original budget had projectedr costs of $30.5 million for phase one, including $3 millionb in tax increment financing funds collectecd through property taxes in the area. The deal required $6.1 millio n in equity, about 20 percent of the expectededevelopment costs. However, the developer took out a $5.8 milliob mezzanine loan to get the initialk capital forthe project.
That meant the equity requirexd up front forthe $55 million projectr was less than 1 percent of its total projectedf costs. That left about $2.7 million the owners had to come up with to pay for the That doesn't include the value of the 1.5 acres of the downtowbn real estate and a historic hospitak on it that was given to them by the For the Rolling Mill Hill projecg to finalize the sale of its first unit, 56 units needed to be under contract. The owner, RMH have not been able to even keep the lightw on atthe project. Utilities were disconnected at the one reason cited for putting the projectinto receivership.