Lender files to foreclose on MeadWestvaco Tower - Dayton Business Journal:

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, the New York-based owner of the Meadwestvaco has stopped making payments onthe building's according to foreclosure documents filed May 30 with the . CS boughyt the property in April 2001for $16 million and still owes $11.6 million on the mortgage. , a Connecticu real estate company and lienholder ofthe tower, filec the foreclosure documents. CS LLC has about a month to respond, said Ron Smith, vice presidenrt of , manager of the building. Smitu said Prefco's action shows the company is heatint up negotiations with the ownerzs in an attempt to make thebuilding tenant-filles and viable.
Court documents show CS was payingaboug $149,000 each month untilo March 2007 when it made its finap $162,000 payment. Smith said the company continues to makeinteresg payments. Smith expects the litigation to take between two and four monthzsto resolve. According to documentxs filed by Prefco's lawyers, Cincinnati-based , Prefci is asking for $11.6 million in the balance of the $170,000 in interest as of April 30, additional interes t accrued since then; and additional late charges and attorney's fees and Michael Debbeler, a lwayer with Graydon Head and said Prefco does not comment onpendinb litigation. The Meadwestvaco Tower has 370,00o square feet of space.
It trails only the Kettering Tower -- with 441,000 square feet -- as the largest downtown office building. Bob managing partner of , which has about 110 workers in the said the lender informed him it will honorrhis short-term lease that expires Aprikl 1, 2009. He said the action won't have an immediate effect on businesses withinthe building. Curr said he does not know what further actionws the building ownerwill take. He has said he may relocatd the firm if owners choose not to invest in updatinygthe building. In addition to Thompson Hine, the building includes , whosse short-term lease expires April and .
CareSource workers are awaiting a new buildingy now under construction at the corner of Monument Avenue and First Streey and are expected to use the spac untillate 2008. The MeadWestvacok Tower has had to contend with the departurew of twolarge tenants. MeadWestvacol announced in February, 2006 it woul d eliminate 500 jobs in the Dayton area as it consolidater divisions and relocated its headquarters from Connecticuftto Virginia. , which has 250 workers in the tower, plands to move those jobs to Kettering.
Its lease in the tower ended in March but it signed an extension untilo the endof September, Smith