APEX, N.C. -- The downward spiral in the housing market leaves residents in an Apex development high and dry after an out-of-state developer pulled out of the project.

Discuss This Story

 

Bob Buchanan moved into the L’Hermitage development in Apex last year with high expectations, but then something went wrong.

“There were signs at the closing that I had a little voice in my head that something wasn’t right,” Buchanan said.

 

Neighbor Catherin Kelly is also concerned.

 

“Right around Christmas, the amount of construction and amount of cars in here declined and since then there hasn’t been any building,” Kelly said.

 

The builder is Diversified Communities based out of New Jersey. Diversified left 10 out of 53 townhouses and 8 out of 27 large homes unfinished.

 

The homeowners say the condition around their homes is horrendous. There are weeds that have grown up to four feet in front of a home going for $680,000.

“I can’t even get someone to come out to fix a gutter because they can’t pay their subs to do that,” Buchanan said.

 

There is also a $1 million clubhouse that has not been used. The Town of Apex says the building does have temporary Certificate of Occupancy and will be used as a polling place in Tuesday’s election, but the residents have not had access to the facility.

 

Realtor Patti Crane has 28 years experience in the North Carolina housing market and says the out-of-state builders did not do their homework.

“It is very important to come into a market and conduct a market study to see what buyers want,” Crane said.

 

We contacted Diversified for a response. The director of sales and marketing emailed: “…you can’t just keep spending millions of dollars...we have been forced into a wait and see situation.” 

 

They also said they hope to find a financial partner to continue the project.

 

Despite their frustration, the homeowners say they are looking at the big picture.

 

“Long-term, this is going to be a great neighborhood. I along with the other neighbors that are here are just disappointed it turned out this way,” Buchanan said.

 

The Town of Apex said there is a concern with public safety in the abandon homes, such as fire and the stability of the structures. Town officials said will begin monitoring the area.