Novare Group Holdings LLC, one of Atlanta’s largest condominium developers, is in default on “a substantial amount” of its debt and is working with its lenders to restructure at least $100 million in loans for projects across the Southeast.

This comes as its auditors question the company’s “ability to continue as a going concern,” according to documents obtained by Atlanta Business Chronicle’s sister publication, the Nashville Business Journal. There, Novare is planning with Tony Giarratana to build the Southeast's tallest building, but is in default on an $11.5 million loan.

Novare faces $280 million in loan maturities in 2009 and another $320 million in 2010. It has $713 million of debt outstanding and $81 million in debt through joint ventures, according to financial statements included in those documents.

Novare, which helped create affordable intown condo markets in Atlanta and other Southeastern cities, lost $47 million in the first quarter of this year and $61 million in 2008.

No properties have been foreclosed upon, Novare founder Jim Borders said in an e-mail to Atlanta Business Chronicle, “but there are near term and past due maturities that could result in that.”

Novare is no longer making scheduled interest payments on loans secured by eight projects in Atlanta, Tampa, Houston and Charlotte. Novare suspended the payments as lenders consider a request to restructure the loans. Combined, the loans come to almost $57 million.

Its auditor, Atlanta-based Deloitte & Touche LLP, recently raised questions about the company’s future, citing “the defaults and the significant maturities in 2009 of outstanding indebtedness.”

In a letter to investors, Borders said the company is taking steps to reduce its debt.

“From a balance sheet perspective, we continue to seek opportunities to reduce our debt, and in some instances this means transferring properties to lenders, in satisfaction of the debt on those assets.”

In a letter to Atlanta Business Chronicle, Borders said the company took in more than $400 million in revenue in 2008 and is working to fight through the worst real estate crisis in a generation.

“We have endured down markets before, although none like this, and we will emerge from this one as well,” Borders wrote. “While these are obviously not the best of times, we are playing through it the only way we know how: with honesty, transparency, dedication, execution, and optimism.”

It has 1,387 high-rise units under construction, including about 500 in Atlanta, 462 in Charlotte and 395 in Tampa.

Novare is the developer behind well-known Midtown Atlanta condo towers such as Viewpoint, launched in 2006, and new towers such as The Ritz-Carlton Residences at Buckhead’s 3630 Peachtree.

Novare built the high-rise condo Metropolis in Atlanta eight years ago. It proved to be a catalyst for a boom of moderately priced condos targeting young intown professionals — a model Novare and its competitors followed during the housing boom.

But, during the past 18 months, the dramatic decline of the U.S. housing market has taken its toll on Novare.

The company suffered a $26.5 million decline in the value of the Atlantic, the 401-unit condo tower in Atlantic Station, according to the letter Borders sent to investors. The write-down was the most substantial of any of its assets, Borders said.

Novare has received a default notice from the construction lender for TWELVE Centennial Park, a 517-unit condo tower in downtown Atlanta, according to the company’s financial statements. The lender is Merrill Lynch Capital, which nearly four years ago originated the $89 million loan, according to Databank Inc., a commercial real estate research firm.

Novare must deal with about $55 million in debt that matured in late 2008 or early 2009. It has forbearance agreements with several lenders.