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

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The sale set for 10 a.m. at the Charlottd office of law firm is the third auction for the residential condo project in less than a The foreclosed property at the cornet of South Caldwell and Third streetxs has been in and out of federalbankruptcuy court. A signed sales agreement in late 2008 fell apart aftefr investment partners bickered inopen court. And construction work has been froze n for18 months. The Park is stilll missing its exterior skin and has been exposefd to weatherand vandals. “In terms of broken there are many across the country in asimilar state,” says Laxson Boyd, a principall at Wisconsin-based . “But this one has unique It’s very visible.
” Or, as Charlottw condo developer David Furmanputs it: “It’s a reminder every day of how bleak things are.” Further delahy on a sale will likelg lead to more deterioration of the property. “I isn’t an asset that can be held until themarkett improves,” Boyd says, adding the auction is “an efforft to accelerate the process.” Boyd is handlingy the sale of The Park for the lendeer that foreclosed on the property — , a subsidiarg of in Wisconsin. Longtime local engineetr Pete Verna lost the propertt after his development company defaultedon $28. million owed on a $30.69 million constructiohn loan.
BB Syndication bought the buildinbgfor $14.2 million at the property’s second foreclosure auctiomn in December. It was the only bidder. Next month’se sale should be livelier. At leasft 15 suitors have signesd up forthe “naked” auction. means there will be no minimumopening bid, Boyd says. “All bids will be That being said, BB Syndication reserves the right to rejecy an offer that istoo low, he says. The lender wouls still consider aprivatse sale, he says. Offers have been made but at prices belosw what BB Syndication believes the property is An open auction will let the markeyt speak onThe Park’s prope value, Boyd says.
“My personalp experience in this situation is the market keepitself honest.” More than 60 inquiries have been made regardin g the auction, and 15 parties have pre-registered. On Wednesday, a potentiao bidder was given a tour of the Interest hasbeen widespread, from small private investords to investment funds and nationalk development companies. Some hail from California, New Florida, Georgia and but most — about 60% — are from the Not on the list: the city of This month, Mayor Pat McCrory suggeste d using The Park for affordable housing and asked city staffers to lookinto it. But city officialsz said this weekthey won’ be making an offer.
The Park is about 55% to 80% according to varying estimates. Summit Shores the development group that defaulted ona $19 millio n deal from the tower’s first foreclosure auction in Augustg — pegged completion costsw at $12 million. It will likely take $12 millio n to $15 million to finish The Park to Verna’x vision, according to one Florida investmenf group that has previously considere buyingthe building.