Charlotte contractor facing massive debt transfers unfinished homes to subcontractor

CHARLOTTE, NC (WBTV) — The fallout from a Charlotte contractor’s foreclosures and mountains of debt continues to hurt homebuyers, contractors and just about everyone as a result of the projects. left behind.

Now two of the contracted buyers are stuck negotiating with a subcontractor who inherited the incomplete project due to nearly $1 million in unpaid bills from R-Cubed/City View Terraces and owner Chris Bradshaw.

Since WBTV’s first story in January, the walls have continued to close in on City View Terraces, whose legal name according to public records is actually R-Cubed Charlotte Investment Group, and owner Chris Bradshaw.

It also leaves some of the people he was under contract with at risk of losing tens of thousands of dollars.

“This isn’t the first home we’ve bought, but it’s definitely one we’ll never forget,” City View client Bill Hughes told WBTV in an interview.

Bill Hughes, Anthony Longarzo and their loved ones looked forward to becoming neighbors in a newly built duplex on Julia Maulden Place. They were under contract with City View.

The dream of home and becoming neighbors is now a nightmare.

“We’ve kind of come to the reality that the property probably won’t be ours after we’ve been there for almost a year and a half now,” Anthony Longarzo said.

WBTV previously reported that Bradshaw was facing foreclosures on several different properties due to missed payments to his lenders. But instead of the foreclosure records obtained by WBTV, the two units under contract with Hughes and Longarzo were transferred to another company. Carter Lumber took possession in April.

“We just wanted to buy a house and then you know we’re dealing with the company that lent all the materials for the building,” Hughes said.

Carter sued Bradshaw’s company saying they were owed nearly $1 million in labor and materials that Bradshaw never paid. But in the three months since ownership was transferred, the lawsuit has stalled, and now Hughes and Longarzo are negotiating with Carter.

“They assured us that our investment was safe, they will honor the contract and gave us a lot of hope,” Longarzo said.

“We thought in a few months we were going to move into our dream house, that’s what they told us.”

The emails they shared show tough negotiations with Carter and disagreements over a purchase price given the condition of the homes. One of the main issues being how much Carter lost in labor and materials for Bradshaw’s projects.

WBTV did some research and it turns out Carter Lumber sued way more than City View for unpaid bills.

In Mecklenburg County alone, WBTV found more than 25 lawsuits, liens and judgments filed by Carter Lumber against contractors and subcontractors for unpaid bills since January 1, 2020.

Much of this debt appears to be “credit” that Carter extended to other companies, according to their own court documents and “court count requests” which are essentially credit application forms filed in the court docket. .

Carter Lumber was sued in a case related to City View. Groundfloor Holdings loaned City View money to build two units on North Davidson St and had a deed of trust securing the loan.

In the lawsuit, Groundfloor claims that Carter Lumber also entered into two trust deed agreements with City View to secure their $200,000 debt. They claim that Carter knew about the other trust deed, but did it anyway to “give credit” to Bradshaw’s business.

According to Carter, the debt City View owes comes from a credit account. In January, WBTV interviewed former contractors and attorneys who worked with City View owner Chris Bradshaw and talked about his history of forcing people to appear in court to get paid for their work.

“Do you think there’s a responsibility on Carter’s part to allow this to come to this situation?” a WBTV reporter asked Hughes and Longarzo.

“Yes,” Longarzo said. “When they bought the contracts, they bought us.”

“So I think they have a responsibility to us to give us back our money on the down payment or work with us to finish the houses.”

WBTV has reached out to Carter Lumber for comment. The company provided a lengthy written statement saying, “Carter attempted to work with the people who originally contracted with R-Cubed” and claims that they “offered to finance the construction out of his own pocket and sell materials from construction at cost”.

Carter’s rep wrote, “Some have accused Carter of trying to take advantage of these circumstances. This is absolutely not the case. Carter’s goal is simply to recover as much of his losses as possible. Even with the offers Carter made to R-Cubed customers, Carter will still lose a significant amount of money.

Longarzo and Hughes said they would be happy if Carter gave them the $30,000 deposits they gave Bradshaw and called him.

“Cut our losses and get our money back, our down payment that we think is rightfully owed to us because you know, we didn’t ask to be in that situation. We just wanted a house,” Longarzo said.

WBTV once spoke to Charlie Strickland about Owners Construction Lawyer who offered advice on the most important things to consider before going under contract.

WBTV continues to follow the fallout from the City View collapse. Another abandoned construction project on City View’s Irwin Ave has gone into foreclosure and has been put up for auction. Bradshaw placed the winning bid but has so far failed to deposit the money to close the deal. WBTV is working to report more details on this situation in the coming weeks.

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