Weatherstone, LLC Files for Chapter 11: A Georgia SARE Bankruptcy That Signals Broader Pressure

On October 14, 2025, Weatherstone, LLC, a single-asset real estate (“SARE”) entity based in Dallas, Georgia, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Georgia (Case No. 25-41599).

At SPE Specialists, we monitor filings like this to identify early signs of distress in regional markets and to support stakeholders with guidance on governance, restructuring, and fiduciary strategies.

What’s Behind the Filing?

Georgia Secretary of State records link Weatherstone a residential development in Dallas, Georgia, covering 170 acres with 284 planned lots and 133 homes in Phase I, backed by a $36.6 million construction facility.

That capital structure, combined with market headwinds such as higher interest rates, slowing sales, and rising construction costs, likely contributed to Weatherstone’s insolvency. This reflects a growing pattern among mid-sized developers who launched projects in 2022 and 2023 under assumptions that no longer reflect current market conditions.

What Happens Next Under SARE Rules

SARE bankruptcies follow an accelerated process. Within 90 days of filing, Weatherstone must either submit a viable reorganization plan or begin making monthly interest payments to secured creditors.

If these requirements are not met, lenders can request relief from the automatic stay in order to foreclose on the property.

Key upcoming documents, including schedules of assets and liabilities, creditor lists, and the statement of financial affairs, will provide a clearer picture of the capital stack, creditor exposure, and potential pathways for resolution.