News updates are sent daily. You can unsubscribe at any time.
Hearing set to approve $2M for Centerpoint
Digg|
Save|
License|
Print|
E-mail|
A hearing is scheduled to approve the release of an additional $2 million for the nearly completed Centerpoint condominium towers in downtown Tempe.
Tribune File
A hearing is scheduled Tuesday in U.S. Bankruptcy Court in Phoenix to approve the release of an additional $2 million for the nearly completed Centerpoint condominium towers in downtown Tempe.
The $2 million would be the second installment of a $4.8 million loan to Avenue Communities, developer of the two-tower complex, by Mortgages Ltd., the lender for the project.
Centerpoint strikes deal to finish Tempe towers
Centerpoint attracting potential investors
Construction of the project came to a virtual halt in June when Mortgages Ltd. filed for Chapter 11 protection under the U.S. Bankruptcy Code.
That action followed the suicide of Scott Coles, principal in Mortgages Ltd., as the lender became overstretched when the Valley real estate market weakened.
In August, the two firms agreed to a $4.8 million loan package to be used for weatherproofing, security, insurance, utilities and other essential items to keep the Centerpoint project alive pending approval of a $75 million loan to complete the buildings.
A hearing on the $75 million loan is tentatively scheduled for Dec. 17, said Andrea Kalmanovitz, spokeswoman for Avenue Communities.
If bankruptcy court approvals proceed according to schedule, the first tower could be open by April 1 and the second tower by October 2009, she said.
Originally, Avenue Communities had hoped to have the project open by the end of this year.
Please add your comments, but follow these guidelines to keep this a safe, credible place for discussing the news: