(Photo: Matt Goyer)
With the Brix auction taking place last weekend, neighbor Bill asked us to look into another notable Capitol Hill real estate development – 25 on the Park – that is struggling with the down economy. Urbnlivn reported on some of the development’s problems back in summer. We’ve dug in to learn a bit more about these empty homes that seem to be stuck in limbo on the edge of Cal Anderson Park.
CHS can confirm that on February 24, 2009, Everett-based City Bank foreclosed on the development and the Dwelling Company (“Jacobsen House Inc” is the holding company) no longer markets or owns it (full notice of foreclosure is attached to this post). City Bank foreclosed on the property for the following reasons :
a. Failure to pay second half 2008 real estate taxes of $13,019.22 plus interest and penalties.
b. Failure to pay when due the following amounts which are now in arrears:
Monthly Payments of $101,874.23 due 10/10/08, $106,582.11 due 11/10/08, $103,313.17 due 12/10/08, $106,756.94 due 01/10/09 and $106,756.92 due 02/10/09
Charges for monthly payments not made within ten days of its due date $29,450.61
Default Interest Increase:
Default interest increase from 01/20/09 to 02/24/09 $145,907.30
TOTAL MONTHLY PAYMENTS, LATE CHARGES AND DEFAULT INTEREST INCREASE $700,614.28
Though the notice anticipates an auction in June 2009 and there was an auction scheduled for August 2009, no auctions have apparently taken place. From City Bank’s comments after its most recent earnings release, they may be attempting to find someone to finish the build out on the units to sell them:
“We are prudently financing the construction of homes in housing developments where sales are actively occurring,” [CEO Conrad] Hanson said. “We are not planning on selling building lots where the appraised value is significantly below the value of the land with a completed house.”
City Bank board member Marty Heimbigner said developing holdings is a key component of the bank’s survival strategy.
CHS contacted City Bank for an update on the status of the development and will add any new information to this post if we hear back from them.