Owners of downtown's First National Center have filed a motion in court saying they need their bankruptcy to be discharged to finance a $12 million settlement with lender Capmark Group.
The proposed February settlement agreed upon by both sides would allow for investment groups led by Aaron Yashouafar to end a foreclosure by Capmark on a $21 million mortgage.
The agreement required a $1 million deposit, which was paid Feb. 28, and the payoff of the remaining debt for $12 million by May 27. If that payoff does not occur, the agreement calls for a return of the deposit and both sides agreeing to place control of the downtown landmark with a trustee who would offer it up for sale.
The filing by attorneys for Yashouafar note the two sides disagree on the appraised value of the property. An appraisal by J.W. Hoyt & Associates for Yashouafar values the property at $16.5 million. Capmark, meanwhile, provided two separate appraisals by Cushman & Wakefield and CBRE reflecting values of $8.4 million and $8.5 million.
The latest filing also notes the property is generating rent revenue of $480,000 a month, which includes rent from Devon Energy Corp. The company leases about half the space at First National and its lease expires next year and is not expected to be renewed with its move into its new headquarters.
“The principals of the debtors are not currently in a position to fund the cash payment amount due to the lender from funds that are immediately available to them,” the filing states. “Accordingly, following the parties' negotiation of the settlement agreement, the debtors contacted a number of institutional and private lenders and other third parties to discuss the terms under which the debtors might obtain the financing necessary to implement the terms of the settlement agreement and pay off the lender.”