More than 30 acres of Magnolia Lakes will be auctioned Aug. 16 at the Chesterfield County Courthouse.
The partially complete development was created by the Tascon Group, a local builder that appears to be winding down its operations.
The lots and land to be auctioned are the collateral for a $3.6 million credit line deed of trust from BB&T, according to county records. The borrower is Tascon-Ironbridge LLC, an entity tied to the Tascon Group, which specialized in maintenance-free developments that are attractive to senior citizens and retirees.
Tascon built several such developments across the region, including Midlothian Wood, Harvest Glen, Magnolia Lakes and John Rolfe Square.
Some of the homes built in Magnolia Lakes and some of the vacant lots there are owned by Eagle Construction of Virginia, one of the more active local builders these days.
Eagle’s stake in the development is unrelated to the portion headed to auction, said to George Franjola, Eagle’s general counsel. And Eagle is still marketing its homes in the development.
“We’re not a party to that deed,” said Franjola. “We’re not the borrower.”
In 2010, Tascon almost became part of Eagle Construction. The companies made a formal announcement about the merger in May of that year. But the deal was never completed.
Instead, Eagle purchased some of the land in the development, and it built and sold some homes at Magnolia Lakes and Tascon’s Harvest Glen development. It also had an agreement with Tascon to manage and market Tascon’s portion of the two developments.
The exact status of Tascon and its subsidiaries is difficult to decipher. The company’s former website now links to Eagle’s home page. And messages left at the last known number for Tascon went unreturned.
Former Tascon president Steve Settlage now works for Eagle as director of lender assistance. He was not available for comment.
“They’re winding down. That is the most accurate way to characterize that,” said Franjola, adding that Magnolia Lakes never quite performed as expected.
“Magnolia Lakes was not what we hoped it would be,” Franjola said. “Harvest Glen has proven otherwise. It is a thriving, active community that has turned the corner.”
Franjola said the difference between the two is simple.
“Same market, same county, different outcome,” Franjola said. “Location: That explains it.”
Michael Schwartz is a BizSense reporter. Please send news tips to Michael@richmondbizsense.com.