Wilshire Village rubberneckers: Pull on over; you are in for quite a treat! The gift that keeps on giving — the tragicomedy of real estate errors at the corner of West Alabama and Dunlavy in Montrose — has come through with another rich round of jaw-dropping twists. It’s up to us to recount and gawk.
We’re still combing through documents filed in the recent lawsuit for more goodies. But a reader who’s a few steps ahead of us has dug into them already and found these gems:
The property has been appraised at $26.8 million. Alabama & Dunlavy (“the partnership”) claim that they were jerked around by Wedge [Real Estate Finance, LLC] as follows:
At the instruction of Wedge, the partnership demolished the buildings on the property. They did this in an effort to prepare the site for development and increase its value by “millions of dollars.” Wedge demanded that this be done because Wedge purchased the Amegy $10 million loan, held the $3 million Wedge loan, and wanted to foreclose. Wedge allegedly stated that if the partnership demolished the buildings and increased the value of the property, Wedge would work with the partnership to avoid foreclosure.
So, the partnership – at great expense – “evicted squatters” and demolished the buildings. But, alas, Wedge decided to foreclose on the partnership and also seize $1,000,000 the partnership held in an amegy account that the partnership planned to use to help fund development.
Among the juicy tidbits…
What? There’s more!?
1. The partnership claims Wedge has met with the city regarding development
2. The partnership has a contract for sale of the property but the purchaser cannot secure funding because Wedge won’t provide an accurate payoff amount.
3. The purchaser has negotiated a lease to build an HEB grocery store on the site.
4. The purchaser is identified as someone named R. H. Abercrombie.
5. [Dilick] states in his affidavit that foreclosure would “ruin my reputation in the community as a real estate developer and would be a “deathblow” to my business of developing properties.
6. Tour 18 Partners executed a commitment letter for a $14,000,000 loan to the partnership, apparently in an effort to show that the partnership can release the liens. Tour 18 also drafted a check for a million dollars on behalf of the partnership and payable to Wedge to reduce the outstanding debt obligation and facilitate the sale.
What does it all mean? What will happen to this prize property?
So it’s either going to be an HEB or a really kickass miniature golf course.
- Wilshire Village coverage [Swamplot]