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VOL. 125 | NO. 89 | Friday, May 7, 2010

Multifamily Owner Defaults On $19.5M Loan

By Eric Smith

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In what has become a common theme in the multifamily industry, another pair of large apartment complexes will be sold on the courthouse steps.

The Waterford Pointe Apartments at 5045 Airways Blvd. in Whitehaven and the Carrington Manor Apartments at 4805 Winchester Road in Oakhaven have been foreclosed, according to a first-run notice in today’s print edition of The Daily News and also at The Daily News Online, www.memphisdailynews.com.

The owner of both complexes, MPI Carrington LLC of Atlanta, defaulted on a $19.5 million loan through Colonial Bank NA dated Dec. 15, 2006.

MPI Carrington paid $11.4 million for Waterford Pointe and $4.6 million for Carrington Manor at the same time from Alliance RTTN LP.

Branch Banking and Trust Co. now holds the debt. The company on Jan. 21 assigned Douglas M. Alrutz of Wyatt, Tarrant & Combs LLP as successor trustee in the matter. Alrutz will auction the property June 1 at noon on the Shelby County Courthouse steps.

Per newspaper policy, calls to the parties involved, such as the property owner, deed holder or trustee, are prohibited until the notice is published.

Waterford Pointe is a 624-unit complex that sits on 36.95 acres along the west side of Airways near Memphis International Airport. Built in 1975, the Class C property has an appraised value of $7.7 million, according to the Shelby County Assessor of Property.

Carrington Manor is a 253-unit complex that sits on 14.08 acres along the south side of Winchester near its intersection with South Perkins Road. Built in 1970, the Class C property has an appraised value of $4.3 million.

Waterford Pointe and Carrington Manor are hardly alone in being auctioned off to the highest bidder – or being reclaimed by the lender, as is often the case.

Prominent apartment properties to face foreclosure in the last six months or so include the Preserve at Southwind, Bella Vista Apartment Homes, Pinebrook Pointe and the Exchange Building.

Plenty of other complexes have traded hands recently under distressed circumstances, such as the high-profile Waterstone Landing Apartments.

The most notable foreclosure of late was the Exchange Building at 130 Madison Ave. on Downtown’s Court Square. The historic property sold for a fraction of its value in a March successor trustee’s deed following a foreclosure.

The century-old, 19-story tower fetched $1.9 million from Northwest Capital Group Inc., an affiliate of Warren, Pa.-based Northwest Savings Bank, which foreclosed the building in February.

The highest-dollar foreclosure in recent months was the 306-unit Preserve at Southwind, a 10-year-old, Class A complex near Hacks Cross Road and Tenn. 385.

RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 50 226 2,557
MORTGAGES 44 145 1,731
FORECLOSURE NOTICES 0 37 259
BUILDING PERMITS 204 569 5,701
BANKRUPTCIES 30 87 993
BUSINESS LICENSES 3 110 491
UTILITY CONNECTIONS 0 0 0
MARRIAGE LICENSES 0 0 0