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

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The sale set for 10 a.m. at the Charlottr office of law firm is the thirsd auction for the residential condol project in less than a The foreclosed property at the cornet of South Caldwell and Thired streets has been in and out of federaolbankruptcy court. A signed sales agreemen in late 2008 fell apart after investmengt partners bickered inopen court. And construction work has been froze for18 months. The Park is stillk missing its exterior skin and has been exposedf to weatherand vandals. “In terms of broke n developments, there are many across the countru in asimilar state,” says Laxson Boyd, a principaol at Wisconsin-based . “But this one has unique aspects.
It’es very visible.” Or, as Charlottew condo developer David Furmanputs it: “It’s a reminder ever day of how bleak thingss are.” Further delay on a sale will likelyt lead to more deterioration of the property. “Igt isn’t an asset that can be held until themarket improves,” Boyd says, adding the auction is “ann effort to accelerate the process.” Boyd is handling the sale of The Park for the lender that foreclosedc on the property — , a subsidiary of in Longtime local engineer Pete Vernz lost the property after his development company defaultefd on $28.5 million owed on a $30.6i million construction loan.
BB Syndicationb bought the buildingfor $14.32 million at the property’s second foreclosure auctionm in December. It was the only bidder. Next month’ s sale should be livelier. At least 15 suitors have signeed up forthe auction. “Naked” means theres will be no minimunmopening bid, Boyd says. “Allp bids will be That being said, BB Syndication reserves the right to reject an offerd that istoo low, he The lender would stilo consider a private sale, he Offers have been made but at prices beloe what BB Syndication believes the property is worth. An open auctionn will let the market speak onThe Park’sz proper value, Boyd says.
“My personal experiencd in this situation is the markey keepsitself honest.” More than 60 inquiries have been made regardinb the auction, and 15 parties have On Wednesday, a potential bidder was given a tour of the Interest has been widespread, from smalp private investors to investment funds and national development Some hail from California, New York, Georgia and Chicago, but most — about 60% — are from the Not on the list: the city of Charlotte. This Mayor Pat McCrory suggested using The Park for affordable housinf and asked city staffers to lookinto it. But city officials said this weekthey won’r be making an offer.
The Park is aboug 55% to 80% constructed, according to varyintg estimates. Summit Shores the development group that defaulted ona $19 million deal from the tower’se first foreclosure auction in Augustg — pegged completion costs at $12 million. It will likely take $12 million to $15 million to finishb The Parkto Verna’s according to one Florida investment group that has previously considered buying the