Update-City on the sidelines as Burien Town Square developer pushed to foreclosure plank
Burien Town Square is facing foreclosure by October 29 if developer Urban Partners does not come up with $3.5 million by September 1.
Urban Partners has spent the better part of a year trying to renegotiate their $38.5 loan after Corus Bank of Chicago, the original loan lender, failed last year. Urban Partners still owes $34.8 million on that loan.
On July 26 the current loan holder filed a legal notice to foreclose on the project. The loan matures September 1, after that the only way to avoid foreclosure will be to repay the loan in full, plus interest.
The foreclosure notice covers 118 of the 124 condos in the project. Only six condos were occupied before Corus Bank failed. Paul Keller, principal with Urban Partners, said in an earlier interview with the Times/News that sales are effectively on hold until the loan is renegotiated to allow them to sell the condos for the current lower market value.