Ownership Of Town Square Transferred to Group Holding Construction Loan
Early Friday (Oct. 29th), it was announced that ownership of Burien’s Town Square condominium/retail development was transferred to Corus Construction Venture LLC, which acquired the construction loan for this project after lending bank failed last year.
In addition, original developer Urban Partners will be retained to manage the property.
As we’ve previously reported, Urban Partners financed construction of the six-story Town Square complex with a $38.5 million construction loan from Corus Bank of Chicago.
But the bank, a major construction lender, was closed and its assets seized by the FDIC on Sept. 11, 2009 – just three months after the building opened.
The nation’s housing market collapsed about a year before Corus Bank failed and only eight months before the complex opened at the same time as the new Burien Library/City Hall building and Town Square Park.
ST Residential – an investment group formed by the FDIC, which retained a 60 percent interest in the Corus construction-loan portfolio, Starwood Capital Group and four other private investors – acquired Urban Partners’ Town Square project loan.
Burien Town Square includes 124 condominiums and 19,700 feet of retail space. Only six of the condos have been sold, and none of the retail space has been leased.
In an August interview, Keller told The B-Town Blog that “Urban Partners anticipates [a settlement] will happen.
“Very simply put, Urban Partners anticipates its continuing participation in this project through the sale of condominiums and the leasing of ground-floor retail space.”
In a statement released Friday, Keller said:
“We are extremely proud of what we’ve accomplished with the city and the extraordinary building we have given the community; we want to continue to be involved in its success.”
Also from the same release:
“We feel a battle over the property or a contentious bankruptcy proceeding is not in the best, long-term interest of the project, its residents, the City of Burien or Urban Partner’s long-standing investment in the community,” said Matt Burton, Principal and Chief Financial Officer of Urban Partners, LLC.
Read our previous coverage of Town Square here.