Laurelbrooke homebuilder files for bankruptcy

Bank of Nashville seeking to foreclose on $2M worth of property held by company whose owner also has filed for personal bankruptcy

Email | Print By Walker Duncan

Spec property at 1004 Vaughn Crest Drive in Laurelbrooke

It appears the housing doldrums have made further inroads into the higher echelons of the Middle Tennessee market.

According to court documents, a luxury homebuilder in Williamson County is bankrupt. Adam Stern Homes, which has built spec homes in the mega-mansion haven of Laurelbrooke, filed for chapter 7 protection at the end of last month, less than two months after Corinthian Homes, another local custom builder, did the same.

In the filing, available here, Stern Homes lists about $3.4 million worth of liabilities with a little more than $65,000 in assets. And now, despite the protection, its largest creditor is looking to foreclose on four properties.

The Bank of Nashville, which provided the financing for Stern’s properties, has filed a motion for relief from the stay, hoping to be freed up by the court to begin foreclosure on the properties it financed.

First on the bank’s list is the Laurelbrooke spec property pictured here. That property is listed on RealTracs for just over $3 million. Also listed are three properties in Thompson's Station, which are part of the Fields of Canterbury development. All told, according to Stern’s filing, the unsecured portion of those debts accounts for more than $2 million worth of the company’s current liabilities.

Stern has filed for personal bankruptcy as well. In that filing, roughly $4 million in personal liabilities are listed. It appears, however, that a little more than $2 million of that overlaps with the Stern Homes amount as Stern personally guaranteed his loans with The Bank of Nashville.

Representing Stern is Joseph P. Rusnak of Tune, Entrekin. The Bank of Nashville is represented by Miller & Martin's W. Neal McBrayer.