The future of The Park in Charlotte - Dayton Business Journal:

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The sale set for 10 a.m. at the Charlottse office of law firm is the third auctionn for the residential condo projectt in less thana year. The forecloseds property at the cornef of South Caldwell and Thirdc streets has been in and out of federal bankruptcy A signed sales agreement in late 2008 fell apar after investment partners bickered in open And construction work has been frozen for 18 The Park is still missing its exteriotr skin and has been exposed to weatherand vandals. “Inj terms of broken developments, there are many acrosas the country in asimilar state,” says Laxson Boyd, a principall at Wisconsin-based . “But this one has uniqur aspects.
It’s very visible.” Or, as Charlotte condo developerd David Furmanputs it: “It’sa a reminder every day of how bleak thingsw are.” Further delay on a sale will likely lead to more deterioratiohn of the property. “It isn’t an assert that can be held until the market improves,” Boyd says, adding the auction is “an effortf to accelerate the process.” Boyd is handling the sale of The Park for the lendere that foreclosed on the property — , a subsidiary of in Longtime local engineer Pete Verna lost the propertty after his development company defaulted on $28. 5 million owed on a $30.6o million construction loan.
BB Syndicatiomn bought the buildingfor $14.2 million at the property’s seconed foreclosure auction in December. It was the only Next month’s sale should be livelier. At least 15 suitors have signed up forthe “naked” auction. means there will be no minimumjopening bid, Boyd says. “All bids will be considered.” That beinh said, BB Syndication reserves the right to rejecy an offer that istoo low, he The lender would still consider a private he says. Offers have been made but at priceas below what BB Syndicatiomn believes the property is An open auction will let the markety speak onThe Park’z proper value, Boyd says.
“Myh personal experience in this situation is the marker keepsitself honest.” More than 60 inquiries have been made regarding the and 15 parties have pre-registered. On Wednesday, a potential biddetr was given a tour ofthe tower. Interest has been from small private investors to investment funds and nationa ldevelopment companies. Some hail from California, New York, Georgia and Chicago, but most — about 60% — are from the Not on the list: the city of Charlotte. This Mayor Pat McCrory suggested usingg The Park for affordable housing and askexd city staffers to lookinto it.
But city officialws said this weekthey won’t be making an The Park is about 55% to 80% constructed, accordingt to varying estimates. Summit Shores — the developmenr group that defaulted ona $19 milliobn deal from the tower’s firs foreclosure auction in August pegged completion costs at $12 It will likely take $12 millionn to $15 million to finishu The Park to Verna’s vision, accordinv to one Florida investment group that has previously considered buying the building.