A new development that has promised to help rejuvenate the Marietta Square has been foreclosed on a $4.7 million loan, according to a legal notice published Friday.

In Marietta, Hedgewood has been marketing homes in its Manget community as being within walking distance of the square's shops and restaurants. Homes are priced from the high $200,000s to nearly $600,000.

But the project can't meet terms of a loan to buy and develop the site, according to master developer Pam Sessions of Hedgewood Properties Inc.

If no resolution is reached, the project is slated to be sold Aug. 5 on the steps of the Cobb County Courthouse, the notice stated.

This is the second time in three months that Hedgewood has faced financial setbacks in a high-profile project. In April, a bank took back a $5.7 million loan on some retail space in Hedgewood's award-winning Woodstock Downtown. The bank left Hedgewood in charge of managing the shops, which are on the first floor of a condo building.

Sessions said Friday she hopes to avoid the foreclosure sale by coming to terms with the lender, Branch Banking and Trust Co. BB&T spokeswoman A.-C. McGraw said the bank is willing to work with its clients.

Staff writer Karen Rosen contributed to this article.