Update: UTC Towers Sold Back to Lender
High rise complex, assessed at $65 million, to be sold on courthouse steps today.
Update - 2:30 p.m. - The Towers at University Town Center will likely be bought back by the mortgage lender, Delaware based ML-CFC Commercial Mortgage Trust 2007-8 LLC, following a quick auction outside of the Prince George's County Circuit Court in Upper Marlboro earlier this afternoon.
The complex was purchased for $39.15 million, the opening bid. Though a small group of potential buyers had gathered for the auction, none placed any bids higher than the opener.
Though ML-CFC owns the winning bid, the purchase still has to be finalized by the circuit court before it becomes official.
If you're looking for a bargain on a high-rise housing complex, then today might be your lucky day.
The massive, 244-unit, 910 bed Towers at University Town Center will be put on the auction block later today, according to a report in the Washington Business Journal.
The auction will take place at 1 p.m. today on the steps of the Prince George's County Circuit Court in Upper Marlboro.
Last August saw the foreclosure of the mixed use development and the auction of the Metro One building, which was purchased by CWCapital for $16 million. Other parts, including the movie theater, retail space and condominiums, were acutioned to Wells Fargo for $25.1 million.
The high rise student housing complex, owned by UTC Housing I LLC, has struggled since it was was built in 2006. The company has more than $53.1 million in outstanding debt on the property, worth itself about $65 million, according to the Washington Business Journal.
In 2010 talks were in the works for more than 3,000 new jobs to come to UTC as the U.S. Department of Health and Human Services then was looking for a new home for a new satellite office.
Health and Human Services ended up not choosing the Hyattsville location.
"In short, we opened in 2008, two months before the recession hit," said Wild Onion owner Rasheed Abdurrahman previously. "Our bills were based on pre-recession high rent, big bank loan, and the mall has not seen its full potential…we tried to work through the tough times, but low sales, no money is a bad combination."
Compared to some other businesses, the Wild Onion had a marathon run.
The town center has lost other occupants, some of which were lessees who backed out on their decision. One of those vendors was Wow! Cafe & Wingery, who never even opened doors at the location where Hank’s Tavern and Eats now operates.
Others didn’t come through and some who did—New Town Cleaners, Gifford’s Ice Cream & Candy, The Original Soupman, and Smoothie King—closed up shop soon after opening. Three Brothers Italian Restaurant has a location at UTC that initially was owned by Michael and Carol Cron, who ended up shutting down that location. It has since been re-opened under new management.