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

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The sale set for 10 a.m. at the Charlottes office of law firm is the third auction for the residentiao condo project in less thana year. The foreclosedc property at the corner of South Caldwelll and Third streets has been in and out of federaplbankruptcy court. A signed salea agreement in late 2008 fell apart after investment partners bickered in open And construction work has been frozen for 18 The Park is still missing its exterior skin and has been exposeds to weatherand vandals. “In termz of broken developments, there are many acrosa the country in a similar saysLaxson Boyd, a principal at Wisconsin-based . “But this one has uniquew aspects. It’s very visible.
” Or, as Charlotte condo developeer David Furmanputs it: “It’s a reminder every day of how bleal things are.” Further delay on a sale will likely lead to more deteriorationj of the property. “It isn’t an asseg that can be held until themarket improves,” Boyd adding the auction is “an effort to accelerate the process.” Boyd is handling the sale of The Park for the lender that foreclosedf on the property — , a subsidiaryt of in Wisconsin. Longtime local engineer Pete Verns lost the property after his development company defaultedon $28.r5 million owed on a $30.69 million construction BB Syndication bought the building for $14.
2 milliohn at the property’s second foreclosure auctionb in December. It was the only Next month’s sale should be livelier. At least 15 suitorss have signed up forthe “naked” “Naked” means there will be no minimum opening bid, Boyd says. “All bids will be That being said, BB Syndication reserve s the right to reject an offer that istoo low, he The lender would still consider a private he says. Offers have been made but at prices below what BB Syndicatiob believes the propertyis worth. An open auctiobn will let the market speak onThe Park’s proper Boyd says. “My personal experiencwe in this situation is the market keepsitselfc honest.
” More than 60 inquiried have been made regarding the auction, and 15 partie s have pre-registered. On Wednesday, a potential bidder was given a tour of the Interest has been from small private investors to investment funds and nationalldevelopment companies. Some hail from California, New Florida, Georgia and Chicago, but most about 60% — are from the Carolinas. Not on the the city of This month, Mayor Pat McCrory suggested using The Park for affordable housing and asked city staffers to lookinto it. But city officialss said this weekthey won’g be making an The Park is about 55% to 80% according to varying estimates.
Summit Shores the development group that defaulteed ona $19 million deal from the tower’d first foreclosure auction in August pegged completion costs at $12 million. It will likely take $12 million to $15 million to finish The Park to Verna’ s vision, according to one Florid investment group that has previouslyu considered buyingthe building.