BB&T Corp.'s Branch Banking and Trust Co. has reached a "friendly foreclosure" agreement with Comstock Homebuilding Cos. Inc., which defaulted on $32.7 million of debt in July, the developer said Tuesday.
The Reston, Va., builder said it would turn over properties in Atlanta on Sept. 2 and in Virginia on Sept. 30 to BB&T. In return, the Winston-Salem, N.C., banking company would give Comstock a full release from its obligations, meaning it would not pursue any deficiency judgments, the developer said.
Comstock said it would retain some presold lots in Atlanta.
Christopher Clemente, Comstock's chairman and chief executive officer, said in a press release that his company, which has $144 million of secured debt, is holding "similar negotiations with certain other lenders" and is "optimistic regarding the outcome."
The $136.5 billion-asset BB&T has avoided many of the major stumbling blocks that have hurt other regional banking companies, and it is one of the few to have raised its dividend payment. Its chairman and CEO, John Allison, has repeatedly credited a culture that avoided "the crazy stuff," such as negative-amortization mortgages.
However, BB&T has $8.6 billion of residential development and construction loans, or about 9% of its total portfolio. More than one-third of that book is in its home state, compared to about 19% in Georgia and 10% in Florida.
Last week, BB&T said that Mr. Allison, 60, who has led BB&T since 1989, will retire as its CEO at yearend and remain chairman through the end of next year. Kelly King, the chief operating officer, is expected to succeed Mr. Allison in both roles.