I'm back from a break and there's much to report. I'll start here with some pretty big real estate news, but make sure to check in with Biz Buzz Tuesday for much more.

A representative with Legend Communities confirms that it has the luxury development Harborwalk, a Hitchcock community known for million-dollar waterfront homes, under contract.


Homes rise behind the Harborwalk marina in Hitchcock. Photo by Kevin M. Cox

Legend Communities is negotiating to buy the property from Compass Bank, said Mark Caldwell, who will be development manager of the property once the acquisition is finalized.

In January 2010, development firm Harborwalk LP filed a lawsuit against Compass Bank after the bank sent notice of a default on an amended $30 million note and refused to allow the company to draw any more money to cover project costs. Compass Bank is now doing business as BBVA Compass.

In the lawsuit, Harborwalk LP accused Compass Bank of breaching an agreement to extend the loan for five years.

Harborwalk LP at the time also said it had not defaulted on any provision of the loan agreement and had made timely payments. The development firm sought an injunction prohibiting Compass Bank from foreclosing, among other remedies.

But Harborwalk was victim of a scenario that had played out around the county and the nation during the real estate crisis. Compass Bank blamed declining value of property used as collateral for its decision to call the note.

"The appraiser's valuations show a very large decline in the value of collateral from the collateral previously used in the the loan restructure in 2008," according to a letter Compass sent to Harborwalk in 2010.

It appears Compass prevailed.

Harborwalk LP developed the 380 residential lots, 150-slip marina and a yacht club 2.4 miles west of Interstate 45 on state Highway 6.

"We are very close to having a firm closing date," Caldwell said. "We've had it under contract for some time and we're very excited about the community."