This problem predates the current real estate market troubles. It was a well-known secret (?) that the construction company was in trouble, in the industry.
Payton Construction Corp. filed a voluntary petition to reorganize under Chapter 11 due to losses suffered primarily from three residential projects.
The Boston-based construction management firm suffered $15 million in losses resulting from residential projects in Malden and Boston, according to the company’s attorney, Peter J. Haley of the Boston firm, Gordon Haley LLP …
The three projects cited by Haley are: a 133-unit condominium project in the South End called Gateway Terrace; a 170,000 square-foot mixed-use project at 700 Harrison Ave. which includes 84-units of housing and a 318,000 square-foot, 11-story, 204-unit apartment project on Pleasant Street Apartments in Malden.
“The projects were substantially completed in 2005,” said Haley. “The costs to complete these projects exceeded the collections under the contracts.”
Gateway Terrace is completed and partially occupied, currently. No word on whether Payton Construction is still involved with 700 Harrison, although construction continues, as far as I know.
Source: Payton Construction files for Chapter 11 – By Michelle Hillman, Boston Business Journal
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