HENDERSONVILLE – The North Carolina Business Court has authorized a sale process for the stalled Fairmont Heritage Place The Cedars project, clearing a $36 million stalking-horse bid by its primary construction lender while rejecting condo purchasers’ effort to stop the process on an equitable-lien theory.
Judge A. Graham Shirley entered the order Oct. 7 in the receivership case involving Fuse 10 LLC, 719 No Main LLC and Cedars Lodge & Spa LLC. The approved process covers eight Hendersonville parcels and the unfinished improvements associated with the planned luxury hotel and condominium development.
The order says Fuse 10 made a $32 million construction loan secured by first-priority liens on the defendants’ real and personal property. The borrower is in default, and the receivership includes other secured and unsecured creditors as well as condominium purchasers.
The approved framework uses competitive bidding to test the property’s value. The Hendersonville Lightning reported that Fuse 10’s $36 million credit bid would establish the starting price, while WLOS reported that the receiver plans to use Marcus & Millichap to market the property nationally.
The order grants the receiver’s sale motion, but it does not identify a completed transfer or a final third-party buyer. It also leaves Fuse 10 free to seek foreclosure relief later if the sale process does not resolve the receivership.
About 43 condominium purchasers entered purchase agreements for units at the project, according to the order. Their deposits could be released from escrow and used for construction after a seven-day rescission period. The purchasers argued that their payments should support equitable liens with priority over Fuse 10, but the court found no credible basis for that claim on the current record.
WLOS separately reported that Turner Construction stopped work after unpaid bills, and the Hendersonville Lightning described the residential tower as half-completed. Those reports underscore the stakes for contractors, purchasers and other creditors, but the order does not guarantee recoveries for any group.
The order moves a prominent stalled downtown development toward a possible change in control. The next material step is the receiver’s solicitation of qualified bids and any further court action needed to complete a transaction.