The lawsuit, filed Aug. 28 in Maricopa County Superior Court, claims Camelback Plaza Development LLC defaulted on its monthly payments of $80,162.37 in November 2001 and currently owes more than $801,623 along with $44,172 in interest.
The legal action was filed by GMAC Commercial Mortgage Corp. of California, which serviced the loan for La Salle National Bank. The lawsuit does not name the owners of the development company.
Neither Kevin M. Judiscak, who is listed with the Arizona Secretary of State's Office as an agent for Camelback Plaza Development nor Chris Bihler, an agent for Imprimis Partners II LP, which is listed as an owner, returned telephone calls for comment by press time.
Camelback Plaza Development took out the $7.2-million loan from Boston Capital Mortgage LP in Massachusetts Nov. 1, 1996. On Sept. 30,1997, the loan was transferred to La Salle National Bank as trustee for GMAC. The loans were secured by a deed of trust and an assignment of leases, court papers indicate.
One month before the loan default, Camelback Plaza Development filed for Chapter 11 protection in US Bankruptcy Court in Phoenix. The filing was dated Oct. 1, 2001.
According to court papers, "the borrower has limited and rapidly dwindling sources of income and is unable to draw on equity to fund property-related expenses." The suit said the defendant also "has failed to develop an adequate leasing plan to lease unoccupied commercial tenant space and are defendants in current disputes and lawsuits." Among those suits is one filed against the property owner by its tenant, the Hard Rock Cafe. The nature of that suit is unclear.
In asking the court to place the property in receivership, GMAC requested the development company turn over to a receiver all business records, licenses, permits and other documents, including a bank account containing $126,975. GMAC also asked the court to prevent the borrower and its agents from interfering in the receiver's management and operation of the property.
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