The Cedar Rapids, IA-based lender took control after an auction earlier this week (Monday, March 3) by its bankrupt Texas-based owner turned up no qualified bidders. The court-ordered auction, handled by Kennedy Wilson International, was scheduled after CarrAmerica backed out of a deal to buy the complex for $18 million this past November, according to court documents. The minimum auction bid was $17.5 million, and that's the amount that will be taken from the total the lender says it is owed.
The bankrupt Texas company that Investor Life Insurance took the property back from is Rosche One Interests LP, a unit of Corpus Christi, TX-based Rosche Corp. Life Investors held first and second deed of trust liens on Quadrant I-5 Center among other collateral and filed a proof of claim in the amount of $80.37 million, according to court documents.
Rosche's plan is to emerge from Chapter 11 by satisfying creditors, secured and unsecured, with $23 million from the new investors and roughly $77 million from the forced sale of high-profile office buildings and retail centers in Texas and Washington.
In the Seattle area, the company still has control of the 158,355-sf Meridian (retail) Center in Downtown Seattle and the 199,168-sf FAA Building in Renton. As part of the reorganization, Rosche is reportedly seeking a buyer or partner for Meridian Center but not the FAA Building.
Rosche President Keith Harvey told GlobeSt.com in February that a $60-million sale contract for the Meridian had fallen through and that the company was now seeking a joint venture partner. Meridian Center tenants include NikeTown, GameWorks and the Cineplex Odeon Theaters. Planet Hollywood closed its restaurant there in September 2001 after missing rent payments.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
