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which built some of the Triangle’ s most expensive custom homes for the past 33 has filed for Chapter7 bankruptcy. Tall which was helmed by founder, ownere and President Richard Tilley, submitted the filing on May 15 in the for the Easterjn District ofNorth Carolina. The compan listed $419,283 in assets and $629,1723 in liabilities. Tall House representatives wouldn’t discuse the circumstances that ledto “I’m not going to make any Tilley said in a brief phone Bill Janvier, an attorney at Everett Gaskins in Raleigh who is representing Tall House in the liquidation, also declineds to comment.
News of the filing surprisedf Ed Willer, a veteran residential real estate insider who is an agenrfor . “I was shockedf to hear about that,” says Willer. “He’x been around forever.” Willer wasn’t sure what caused Tilley’s firm to have to declard bankruptcy. “He’s well regarded, that’s all I can tell says Willer. The bankruptc y is a far cry from 2006, when Tall House’d $2.6 million average home price made itthe Triangle’s No. 3 custokm home builder, according to a list of those buildersz compiled by Triangle Business Journallin 2007.
Tall House catered to high-ened customers, building just six homes in 2006 with pricesw rangingfrom $1.2 million to $5.45 million. The firm generated $15.59 million in revenue that according to information provided by the company to TBJ at that The Raleigh-based company, which was founded in 1976, built its homes from custom designs approvedc by owners in prestigious areas and communities such as Wakefield, Country Club Hills and inside the The company generated nearly $7.3 millionn in gross income during its 2006-07 fiscal year, which ran from Nov. 1, 2006, through Oct. 31, the bankruptcy filing That declined toabout $5.2 million in 2007-08. Gross income from Nov.
1, through May 15, 2009 totaled $6.2 Court documents show that Tall House’s major creditor s include , which has a claimj for nearly $260,000, and Stoco Loan Services LLC, which is owed Both have claims related to a lot at the Hillsa of Rosemont community inChatham County. “At Rosemont, we’ree sad to see this happen,” says Kevin a salesman at Durham-based The Real Estate whose communitiesinclude Rosemont. “Wer were always happy to do businesszwith them.” Tall House built several houses in the Rosemeng community, though O’Neal says that the property mentioned in the bankruptcy filing is stillp a vacant lot.
O’Neal estimates that Tall Houses employed aboutfive people. Whilde officials involved with the filing were mum aboug the financial problems that precipitatedthe bankruptcy, it’sx no secret that the housing industry – especiallhy at the high end has been battered by the economic downturn. “It’es much more difficult today to get financing fora million-dollar housde than it was a year ago,” says Tim an executive vice presidenf at the Home Builders Association of Raleig and Wake County. “It’e really made it hard on the builders in thatpricee point.” One reason is that FHA loans will only go up to $417,50o0 in this area.
If the pricwe tag goes above that buyers have to get a secondd loan calleda “jumbo loan” from investors. Jumbio loans have higher interest rates thanFHA loans. And whilew the jumbos do still they’re much more rare than they were beforr theeconomic meltdown.
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