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Old Posted Jul 15, 2017, 2:15 PM
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Marvland Marvland is offline
SLC Lifer
Join Date: Oct 2014
Location: Fairpark
Posts: 403
Originally Posted by airhero View Post
Last I heard, the owners defaulted on their loan and Citibank had decided to seek a foreclosure on the property, and that's where it was left off. I'd be interested to know if anyone has purchased the property yet. I'm sure other people have access to that info.

This is the most recent article I can find on it:
All of the original deeds and entities are still on title. The bank (Citibank among others) hasn't foreclosed or even filed a notice of default. Not unusual on a file of this size. This is the new normal for large scale commercial defaults. An asset loss like this will stay off the books until there is a real buyer in place. Problem is that the parcel value (land value minus a multi-million demolition bill) is nowhere near the debt ($30 mil-ish). That kind of straight loss can affect even a national banks balance sheet. The lending and asset ratios are all much more strict since the downturn so what do banks do to avoid sanctions? They simply DON'T foreclose. In the next downturn, don't expect many commercial foreclosures. I would not hold my breath on this one. It will take years to unravel. My fear is that it will stay in shadow inventory for Citi bank for the foreseeable future. The only bright part is that SLC RDA only had loan commitments but no actual cash change hands. They dodged a real bullet on this mess, probably the biggest development mess in our city's history.
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