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Bank of America Tired of Waiting for Roosevelt Reorganization

By Eric Richardson
Published: Tuesday, November 24, 2009, at 03:38PM
Roosevelt Sales Center Eric Richardson [Flickr]

While the signage outside the Roosevelt still says Sales Center, the office has been doing nothing but leasing since the project's April bankruptcy filing.

Eight months after the 220-unit Roosevelt Lofts entered bankruptcy, Bank of America is tired of waiting for its money.

The bank filed a motion today asking that Judge Geraldine Mund end the Roosevelt's Chapter 11 reorganization, a move that would allow the bank to foreclose its $80 million loan on the property.

"The Court should not allow the Debtor to just sit and prolong this case for an indefinite period of time at the expense of creditors," the bank writes in today's filing.

That would be a blow to Roosevelt Lofts, LLC., which in August filed an updated financial plan that relied on both sales and rental income to complete the building's upper floors and find its way back into the black.

Bank of America doesn't buy the idea that the numbers really pencil out. "There is no reason to believe that the proposed sale of the residential units would generate enough funds to pay creditors," it said. "Thus, there is no reasonable prospect for reversing the Debtor’s loss and of revitalizing the Debtor as a viable business enterprise."

The motion to end bankruptcy, as well as a motion by Roosevelt Lofts asking for permission to sell units, should go before the court in mid-December.

According to Roosevelt Director of Leasing Randelle Green, 35 units are currently occupied in the building, up from 25 at the beginning of October.

The building is just one of three Downtown residential properties that Bank of America has a chance of soon owning. It stands poised to take over the Brockman Lofts, at 7th and Hope, as part of Chapter 7 liquidation proceedings on that project. It is also opposing a reorganization plan for the Title Guarantee Lofts, at 5th and Hill, a project on which it is owed approximately $24 million.

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