TAMPA - The developer of The Towers of Channelside, a pair of 29-story luxury condominiums that help define downtown's skyline, has accomplished a rare feat for a condo builder in this economy.

It's emerging from bankruptcy.

The developer reached an agreement with Wachovia Corp. to structure a new loan that will end the Chapter 11 bankruptcy reorganization, said Richard Sacchi, president of The Towers of Channelside LLC.

"We think we're one of the only developers of a downtown condo in bankruptcy that will come out of it," Sacchi said.

The action is unheard of in today's shaky condo market, said Jack McCabe, whose company, McCabe Research & Consulting in south Florida, tracks the industry.

"This is the first commercial loan on a condo project that I'm aware of in which the lender allowed a developer in bankruptcy to emerge, complete the project and proceed with sales," McCabe said.

The deal also comes days after CitiGroup purchased Wachovia, which was struggling under the weight of delinquent adjustable rate loans.

The developer filed for bankruptcy protection in March, after Wachovia cut off its credit. It had sold just 89 of the 257 units, according to documents filed in U.S. Bankruptcy Court in Tampa.

Many of the contracts on units have not closed because buyers backed out, documents said.

Sacchi told the Tribune on Wednesday that 16 additional units have sold since the bankruptcy filing and that he expects to sell more now, since it is shedding the stigma of bankruptcy.

"Some buyers were scared off, fearing that we'd go under," he said.

The company listed debt between $50 million and $100 million and assets of between $100 million and $500 million in Chapter 11 documents. It said the lender refused to allow the company to draw the remaining amounts available under its loan. Wachovia is owed about $58 million, according to court documents.

At the peak of the housing boom, more than two dozen condominiums were planned in and around downtown Tampa. A handful of the condos opened and some other developers either have stalled or canceled projects.

Four other developers either have filed for bankruptcy or walked away from projects.

•SimDag LLC, the Tampa developer of the proposed 52-story Trump Tower Tampa, filed for Chapter 11 bankruptcy protection in June. On Monday, the developer reached a mediation agreement with Donald Trump that would end the licensing agreement that would have given the tower the Trump name.

•Tampa developer Key Developers Group LLC filed for Chapter 11 bankruptcy reorganization in March after some buyers backed out of contracts to buy units at The Place at Channelside. The unsold condos at the 245-unit building are scheduled for auction this month.

•The developers of the Ventana condominiums in the Channel District agreed in June to turn ownership over to the project's lender instead of filing for bankruptcy.

•Tampa Condo 2 LLC, the developers of the proposed 472-unit Tampa Condo II, filed to reorganize under bankruptcy in March. The company is a subsidiary of Daytona Beach-based Amon Investments LLC.

Reporter Shannon Behnken can be reached at  (813) 249-7804        or sbehnken@tampatrib.com.