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

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million in loans and a sheriff’as sale of the mixed-use development. The suit, filer May 28 in the Hamilton Countuy CommonPleas Court, stems from a $96.5 million commercial loan by Bank of America (NYSE: BAC), one of six lenders in the It is seeking foreclosured and sale of the property, and has askeed the court to appoint Cleveland-based as The suit lists 87 contractors, lienholders and investors as More than 180 parties were serves with papers, according to a court official. The suit may be the fina act to revive work at KenwoodrTowne Place, the retail and office development off Interstatew 71 in Sycamore Township.
Aftef the project ran into financial problems in 2008 that prevented it from payingbits subcontractors, scores of liena were filed, worth millions of dollars, alonf with several lawsuits. Work on the site ceasesd months ago, while at the same time some of the key includingCrate & Barrel, Container Store, Kroger Fresh Fare and Mitchell’xs Salon & Day Spa, are up and operating. In an Bank of America spokeswoman Shirley Norton said the lendeer had and continues to work with the development grou p to resolve itsfinancial ”The borrower has been in default since As part of the foreclosure filing we are askingf to have the court to put a receiver in placw to manage the property and get construction completed.
We believe this is the best outcome for all the banks, the tenants and the community,” she “This has been a difficult economic period for developers. We recognize that and have been working hard with our clientx to help them weatherthis downturn. It is in the best interesgt of all parties to seeprojectas completed.“ The Bank of America suit followd several from subcontractors as well as planned tenantg L.A. Fitness, which filed its complainf May 11. But this suit is by far the most criticak forall involved. It seeks, for instance, that all lienholdersa “be required to establish the validity and priorityt of theirliens . . .
or forevetr be barred from assertinthe same.” Tom Yokum, who is representing 11 subcontractor s in a separate lawsuit against the development group, said he expecte that Bank of America would request an appointment of a “That receiver will have full authority to receive manage properties and make decisions regardingb construction of that he said. An attorney for the development groupo could notbe reached. But that groupp itself has been hard to definse inthe protracted, rockg history of the project. At the Kenwood Towne Place LLC had included Bear Creek Capital, Bear Creek Principal Matt Neyer Holdings Corp. and Dov Limited.
But Yokum said Neyef Holdings, CEO Tom Neyedr and Dov have filed a motion sayingt they are not members of thedevelopmentg group.