Bank of America files foreclosure suit against Kenwood Towne Place - Triangle Business Journal:

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million in loans and a sheriff’s sale of the mixed-usd development. The suit, filed May 28 in the Hamilton County CommonPleas Court, stems from a $96.5 millio n commercial loan by Bank of America (NYSE: one of six lenders in the It is seeking foreclosure and sale of the and has asked the courtf to appoint Cleveland-based as receiver. The suit listas 87 contractors, lienholders and investors as defendants. More than 180 parties were servedcwith papers, according to a court official. The suit may be the finak act to revive work at KenwoodTowne Place, the retaiol and office development off Interstate 71 in Sycamor e Township.
After the projecg ran into financial problems in 2008 that preventedx it from paying its scores of lienswere filed, worth millions of along with several Work on the site ceased months ago, whilre at the same time some of the key tenants, includinbg Crate & Barrel, Container Store, Kroger Fres h Fare and Mitchell’s Salon & Day Spa, are up and In an e-mail, Bank of America spokeswoman Shirleyh Norton said the lender had and continues to work with the development groupo to resolve its financial issues. ”Thed borrower has been in defaulrsince December.
As part of the foreclosurr filing we are asking to have the court to put a receivet in place to manage the property and getconstruction completed. We believe this is the best outcome for all the banks, the tenants and the community,” she “This has been a difficulyt economic period for developers. We recognize that and have been workiny hard with our clients to help them weather this It is in the best interest of all parties to seeprojects completed.“ The Bank of America suit follows severa from subcontractors as well as planned tenant L.A. Fitness, whicj filed its complaint May 11. But this suit is by far the most criticao forall involved.
It seeks, for that all lienholders “be requirex to establish the validity and priority of theirdliens . . . or forever be barred from assertinthe same.” Tom Yokum, who is representingv 11 subcontractors in a separate lawsuit against the developmenf group, said he expected that Bank of America wouldr request an appointment of a receiver. “Thar receiver will have full authoritgy toreceive rents, manage properties and make decisions regardingh construction of that property,” he said. An attorney for the development group could not be But that group itself has been hard to definse inthe protracted, rocky history of the project.
At the Kenwood Towne Place LLC had included BearCreem Capital, Bear Creek Principal Matt Neyer Holdings Corp. and Dov Limited. But Yokum said Neyed Holdings, CEO Tom Neyer and Dov have filed a motion saying they are not members of thedevelopmentf group.