Ashley Terrace foreclosure proceeds but owners 'in discussions' with lender
The developers of Ashley Terrace hope to avoid foreclosure on a $20.1 million debt on the downtown Ann Arbor mixed-use highrise.
However, the foreclosure action, filed early this month, is one of several facing the multi-state developers.
“Joseph Freed & Associates is currently in discussions with the bank,” said Jane Thompson, spokeswoman for the Chicago-area development company.
According to reports published in the Chicago area, Freed is fighting five foreclosure filings made by Bank of America on projects in four states.
The largest is a project called Block 37, a four-story mall that covers an entire block in downtown Chicago. Freed purchased the property in 2007 from the Mills Corp. - a one-time owner of Briarwood Mall - and attempted to complete the project.
According to court documents cited by Chicago Breaking Business, the $205 million construction loan was out of balance by $42.6 million.
Bank of America also is foreclosing on a $36 million loan made on a retail property in Basalt, Colo., and a $12.6 million loan made to redevelop a mall in Madison, Wis., according to reports in Crain's Chicago Business.
In a statement made to Crain's Chicago Business, Freed said it has extended or modified loans with other lenders, yet “all Bank of America seems to be interested in doing is suing Freed and disrupting projects that have been moving forward.”
In Ann Arbor, Bank of America is seeking repayment of an $18 million loan made in 2005 as the 10-story Ashley Terrace was approved for the corner of West Huron and North Ashley streets. The outstanding debt totals $20.1 million, according to filings.
Local real estate sources said the building has been offered for sale at a discount by the lender, possibly for a price as low as $9 million. Thompson said that possibility is part of the bank discussion.
In the meantime, Freed continues to market the property, which has 99 condos - 71 of which are excluded from the foreclosure - along with 10,000 square feet of retail space and 16,500 square feet of office space.