Charlie Leight/The Arizona Republic The Centerpoint condominium towers broke ground in Tempe in 2005. Now, weathered plastic tarps and boards drape the vacant property as its owner, ML Manager, struggles to find a buyer to finish the project.
The Centerpoint condominium towers in downtown Tempe failed to sell at a foreclosure auction Tuesday, forcing the lender, ML Manager LLC, to take over the property.
Peoria-based ML Manager, the successor to real-estate lender Mortgages Ltd., asked a minimum bid of $8 million to sell the property at the foreclosure auction. Because there were no bidders, ML Manager now owns the property.
"Our plan is to market the towers to a buyer who will finish them," said Mark Winkleman, chief operating officer for ML Manager.
He said proceeds from the sale of the project will go toward paying back investors. Mortgages Ltd.'s loan to Tempe Land Co. LLC, the former developer of Centerpoint, was for approximately $135 million. Tempe Land is a subsidiary of Tempe-based Avenue Communities LLC.
Winkleman said several people attended the foreclosure auction, but no one made a bid.
"There have been reports of problems with the towers and that they need more work than they actually do," he said. "The 22-story tower is 90 percent done."
The 30-story tower next to it does need more work and money to be completed. When Tempe Land converted its bankruptcy motion from Chapter 11 reorganization to Chapter 7 liquidation in September, ML Manager was allowed to file to foreclose on the condo towers.
Mortgages Ltd. financed several high-profile condo and housing projects in the Phoenix area during the boom. In June 2008, after the death of Mortgage Ltd. Chief Executive Scott Coles, the lender was forced into bankruptcy by developers.
Mill Avenue District business owners had hoped the Tempe condos would also sell and that work to complete the towers and to fill them with residents would finally resume.
Centerpoint broke ground in Tempe in 2005. The development near Maple and Sixth streets was to include an estimated 375 condos, an upscale retail plaza, fine dining and a winery. The Tempe City Council waived height requirements to approve the 22- and 30-story buildings.
Tempe leaders hailed the coming of hundreds of affluent condo dwellers. Now, weathered plastic tarps and boards drape the vacant property.
Downtown Tempe stakeholders have complained the towers, which are secured by a chain-link fence, are an eyesore. There have been reports of transients breaking into the condos, looking for shelter.
Shannon Randle is a manager for Churchill's Fine Cigars, which is across the street from Centerpoint.
"If I was the city, I would try to have (the owners) put a 10-foot wooden fence around it and put up advertising for all the downtown businesses on the sides (of the fence)," he said. "They should have that for us as complimentary service for what we have to put up with."
Centerpoint's auction yields no bids; lender forced to take over project
Posts
