Memorial Building lender claims default on $6.8 million loan
February 24, 2012
The owner of the Memorial Building on Main Street did not pay monthly principal and interest payments on a $6.8 million loan starting on July 1, 2011, documents filed in Third District Court at Silver Summit claim.
The documents were filed in late January as the firm that ultimately became the holder of the promissory note tied to the 2006 loan lodged a lawsuit against the owner of the building, known as Memorial Building, LLC.
The firm that now holds the promissory note, known as MSCI 2006-IQ11 Park City Retail, LLC, claims that Memorial Building, LLC defaulted on the loan by failing to make the payments It also claims that Memorial Building, LLC has failed to properly maintain the property and "continues to commit, significant and irreparable waste" on the building.
An attorney representing the MSCI 2006-IQ11 firm was not immediately sure how much his side is owed in principal and interest. The lawsuit lists a Miami Beach, Fla., address for the MSCI 2006-IQ11 firm. The Florida address is in care of another firm, called LNR Partners, LLC. LNR Partners, LLC deals in properties across the U.S.
The firm on the same day the lawsuit was filed also asked that a judge appoint a figure known as a receiver in the case. A receiver in a case like this would be put in a position to oversee the finances and operations of the Memorial Building, which is located at 427 Main St. The loan was secured by the property, the lawsuit says.
The filing asks that Cathie Woods, who is with Commerce Real Estate Solutions, be appointed the receiver. A biography posted on the Commerce Real Estate Solutions website indicates Woods has more than 15 years in the property-management industry. It says she has managed office high-rises and industrial warehouses, among other sorts of properties. Throughout her career, she has managed "millions of square feet" of commercial properties, the biography says.
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Judge Keith Kelly is scheduled to hold a hearing on March 2 about the request to have a receiver appointed in the case.
The case between Memorial Building, LLC and the MSCI 2006-IQ11 firm continues what have been long-running troubles at one of the highest-profile addresses on Main Street.
Memorial Building LLC last spring evicted Harry O’s, the key tenant in the building, in a dispute about rent payments. The Harry O’s space, the largest in the building, has largely been dark since then. The eviction, in late April, occurred two months before the payments on the loan stopped, according to the timeline outlined by the MSCI 2006-IQ11 side. The lawsuit says Memorial Building LLC was provided a notice of default on Sept. 16.
The Summit County Assessor’s Office values the building and the land it sits on at $6.9 million. Property taxes are estimated at $62,914.20 in 2012, according to the Assessor’s Office.