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Owner of midtown Phoenix high-rise files for Chapter 11

[Source: J. Craig Anderson, Arizona Republic] — The owner of Century Plaza, a [midtown] Phoenix high-rise office tower converted into condominiums, filed for voluntary Chapter 11 bankruptcy protection this week.  Windsor Century Plaza LLC, owned by Phoenix-based Equus Realty LLC, had sold only 14 of the building’s 145 units when lead creditor M&I Thunderbird Bank placed the property in receivership in December.

M&I, the sole secured creditor, is laying claim to the high-rise building at 3225 N. Central Ave., which has an estimated value of $19 million.  Documents filed in U.S. Bankruptcy Court said that M&I is owed an additional $23 million, for a total of $42 million.  The company also has dozens of unsecured creditors, with about $3.5 million in additional claims.  The largest unsecured creditor is Phoenix-based Summit Builders, owed $1.6 million.  The Phoenix Treasurer’s Office is owed $40,000 in delinquent property taxes, and the Maricopa County Treasurer’s Office is owed $12 million, according to the filing.  [Note: Read the full article at Owner of midtown Phoenix high-rise files for Chapter 11.]

Major midtown Phoenix condo project forced into receivership

[Source: Brahm Resnik, 12 News] — The new Century Plaza condos in uptown Phoenix, one of several projects suffering in the Valley’s real estate bust, has been placed in receivership.  M&I (Marshall & Ilsley) Bank filed a lawsuit in Maricopa County Superior Court saying owner Equus Realty was in default on its loan.  M&I attorney Scott Klundt says a receiver has now been appointed.  The receiver will oversee operations of the project, such as paying the bills, but Equus Realty will retain ownership.  Doug Edgelow, member manager of Windsor Century Plaza, part of Equus Realty, said M&I’s action was “precipitous and unjustified.”  “The bank’s actions are best understood as a global attempt to manage exposure to loans in Arizona,” Edgelow said, adding, “they have not started any foreclosures.”

The 17-story condo tower at N. Central and E. Lexington Aves. is a converted 15-story office building.  Edgelow says the building is completed but just 14 of the 145 units are sold.  The receivership should not affect residents, he said.  “There’s no indication any work will stop on the building.”  [Note: To read the full article, click here.  Photo source: Sharon]