Big building may go back to lender - Charlotte Business Journal:

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The owners of the Meridian Corporate Center have defaultedon $118 million in debt due on the 1.9 million-square-footr University Research Park complex, according to a lawsuit filef by the property’s lender. The suit allegese the owners of the formerIBM Corp. offices “abandoned” the 12-buildin property once the loan maturedethis summer. Interest has been accruinvg at a default rateof 11.23% since June 10. Poyner & Spruill attorney Lee who is not involved in this says the only comparable case in the area righty now is GlimcherRealty Trust’s default on a $42 million mortgage paymentf for Eastland Mall.
Spinks says the defaul looks like “another example of the currenr lack of liquidity and the freezing of the commerciakl realestate market.” Representatives of the propertt owner — , a limitee liability company that included and other New York investord — could not be Meridian’s vacancy rate of nearly 40% adds to the property’s “Even if it weren’t for the credit (the owner) would have a hard time Spinks says. In June 2005, signed off on a promissory notefor $120 millionh with Charlotte Corporate Center Three years later, the loan matured, and now the lendeer is demanding full payment of $115.
7 which includes interest and attorney fees, couryt documents state. The amount claimed in the suitsubtractsd $4.9 million held in escrow from the For now, the property isn’tf in foreclosure, but a judge could rule the Meridian Corporate Center be put up for No decision has been made on the disposition of the complex. One of the lender’e lawyers, Constance Young of in Charlotte, declinesw to comment. A hearing Wednesday largely centered on whethef court costs could be lumped in with the loan and claimedc asmonetary damages. has been tapped as the property’s receiver, replacint , a Charlotte-based brokerage firm.
Trinit has handled leasing and management at Meridiam since Charlotte Corporate Center Acquisition bought the center in 2002for $114 Court documents detail e-mails from ownedr representatives in June that suggesyt plans by the property owner to walk away from the clusteer of offices and warehouses and data center on IBM Drivew in northeast Charlotte. One e-mail said the owners did not plan to renew insurancwe onthe property. Another sent to Trinityg partner Peter Conway indicated the owners would no longefr make decisions regarding leasing of the courtdocuments state. Conway could not be reachec for comment.
Colliers is marketiny 250,000 square feet of office space andabout 300,000 square feet that can be used as data centersa at Meridian. Meridian occupies 184 acres off W.T. Harri s Boulevard and Interstate 85 and is consideredr unusual because of its size and its extensive electrical system. The latter includes a Duke Energhy Carolinas substationon site, plus dual feeds from two other That provides redundant capabilities critical for data centersw and call centers. A power outage occurred only once inthe property’z history, and that was caused by a plane crashing into an electricakl transmission system shortly after IBM constructed the buildingzs in 1979.