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SEATTLE, WA-SeaGulf Group of Seattle, a development entity of David Zemke and Jeret Garcia of Albuquerque, has filed for bankruptcy under the reorganization provisions of Chapter 11. The subject of the bankruptcy is the company’s high-end condominium project on Alki Beach called Harbor Landing.

The project, begun in the latter part of 1999, consisted of eight condominiums plus two penthouses, with the standard units being listed within the range of $600,000 to $800,000—and the asking price on the two penthouses set at a whopping $2.4 million each. While some records indicate that two of the units were sold, there is room for confusion about the transactions.

Tracy Harris, a broker with Prudential Cayce & Gain in Seattle, tells GlobeSt he sold the project’s land to SeaGulf. Harris says he has heard that one of the units was sold in a conventional sale and that one or two others had been involved in some kind of trade transaction. However, the remaining units are unoccupied, and some finish work has yet to be completed, as SeaGulf ran out of funds to complete the project a year ago.

Scores of liens have been filed against the property. Issaquah-based Seattle Construction was the general contractor, but GlobeSt has been unable to reach anyone to comment on the project.

Harris says that even when the market was serving up top dollar for ultra-high-end condos, Harbor Landing was over priced. “Similar projects were running in the vicinity of $450 to $500 per square foot, but Harbor Landing was going for something like $600 a foot or more,” says Harris. “Had they priced the units correctly when they came on the market, they might have sold them all,” he says.

According to reports, the property was in the process of foreclosure by Washington First International Bank, which had lent $5 million for Harbor Landing’s construction. GlobeSt has, thus far, been unable to contact SeaGulf’s bankruptcy attorney, James L. Day of Seattle.

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