No bidders at Promenade Shops auction

LOVELAND – With no bidders at the Larimer County Public Trustee’s
Wednesday morning sale, the Promenade Shops at Centerra went back to the
bank.

There were more than a dozen spectators but no bidders present at the
sale, making the pre-sale bid of almost $85 million from CLC REO LLC the
winning amount. CLC REO is an assignee for KeyBank, which is the lead
for the group of banks that participated in the loan.

The original construction loan for the Promenade Shops was made in
October 2004 for $116 million to Centerra Lifestyle Centers LLC. The
principal outstanding on the loan when foreclosure proceedings were
initiated last November was $112.86 million with a current total
indebtedness of $117.2 million, leaving a deficiency of almost $32.2
million.

With the trustee sale completed, McWhinney no longer has any ties to the
development, according to COO Doug Hill. Hill said the firm also has no
obligations to repay the deficiency due to the structure of the limited
liability partnership. Citing corporate strategy, he declined to
comment on whether McWhinney had at any point been planning to bid on
the property or whether the firm is in discussions to purchase it from
the lenders.

An inquiry to Poag & McEwen, McWhinney’s partner in the development,
was not answered in time for publication of this story. An inquiry to
KeyBank was also still pending.

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