The block-long 120-unit condominium behemoth known as Warehouse 11 is back from the brink of bankruptcy.
Developer McCaren Park Mews reached an agreement with its bank, Capital One Bank, and a third-party financier in bankruptcy court late on Wednesday, to buy back the debt on the N. 11th Street building.
Details were unavailable, but a source close to the parties said that the amount of the deal was close to $35 million.
Later, the lawyer representing one of the building’s owners, confirmed the deal.
“We reached an agreement,” said Leo Fox, whose client, Isack Rosenberg, is one of the owners of Warehouse 11.
Sales of condos at Warehouse 11 will continue through the spring, as the building’s owners will designate 90 percent of the proceeds of sales to Capital One as part of the agreement. A representative of apartmentsandlofts.com, which is handling the sale, said that 50 percent of the units have closed as of this month, and expects to sell the remainder.
The bankruptcy deal almost didn’t happen, as a third party in the negotiations gummed up the proceeds, insisting on court oversight for the process by which the developers pay their creditors.
Yet, after months of wrangling, a deal was finally signed off by Judge Carla Craig.
©2010 Community News Group
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