George Wolf
Oct 30,2008
In: Foreclosure Crisis

The Courtyard Of West Franklin Street Facing Foreclosure

Wachovia Bank is foreclosing upon The Courtyard situated on West Franklin Street. If it is sold retail shops and offices will be in a dilemma. A hearing will be held by the court on 16th September to determine if Wachovia could proceed with the selling of the property to realize its unpaid dues.

Last month the bank requested the permission of Orange County Superior Court to foreclose upon The Courtyard. Payments on a loan amounting to $2.63 million was not being made by Spencer C. Young Investments due on the mortgage of the property it had bought in 2005. Young and his lawyer Kieran J. Shanahan could not be contacted for discussion regarding the foreclosure matter.

There are about eight vacant reo properties in the complex. The current tenants include many famous food outlets like Locopops and Mexican Popsicles. The Courtyard also hosted 3Cups coffee shop but the latter had to exit after a dispute with Young over parking rights. Young is also involved in personal wrangles with tenants and contractors – some of which have been taken to court.

Apart from parking worries Young had other problems. Recently a collection agency brought legal charges against him alleging that he had defaulted on $15,000 credit line with Citibank. Earlier he was sued by for not having paid $3,000 towards electrical maintenance to a servicing firm. A construction company also sued him for not having paid for services rendered towards improvement of the property. The background seems to have been building up for foreclosure to strike.

The word of the impending foreclosure has spread far and wide among the business community. Potential buyers have been contacting Craig who owns most of the parking space behind The Courtyard to know if matters can be negotiated. The foreclosure news has generated high interest. Craig says it is too early in the foreclosure drama to predict what is going to happen but he hopes that everything will be for the betterment and things will start moving. He added, “Nobody’s ever seen anything like this around here.”

Whatever the outcome of the foreclosure it is too late for the owner of 3Cups, Alexander. He is already executing plans to open a new outlet on Elliott Road close to Whole Foods. For him the damage has already been done. He said, “I had to get out, but there are some really, really good businesses in there, and maybe it will make a difference for them.”