The embattled Los Angeles-based owners of Oklahoma City's First National Center have settled a long-running foreclosure case with their lenders.
Attorneys for lenders Capmark Bank filed court papers Wednesday dismissing the foreclosure after making final arrangements with partnerships led by Millbank Real Estate and CEO Aaron Yashouafar.
Yashouafar-led investment groups bought the historic downtown office building for $21 million in 2006. Capmark Bank filed a foreclosure action in 2010 after a loan default. That was followed by a bankruptcy filing by First National Center's owners.
Earlier this year, Capmark agreed to dismiss the foreclosure with a $12 million payment. Yashouafar's investment groups and the bank then agreed to several extensions to forestall a court-ordered receivership of the property.
Leif Swedlow, an attorney for Yashouafar, said this week's resolution was beneficial for all parties. The bankruptcy filing by First National Center's owners was dismissed upon approval of the foreclosure settlement, he said.
“With their renewed ability to focus their attention on the building and its tenants, the owners and managers of this (Oklahoma City) landmark plan to resume renovations that had been previously started and to aggressively pursue a leasing program to increase occupancy,” Swedlow said in a statement.
Capmark's attorney, Rob Robertson, could not be reached for comment Thursday.
The First National Center will lose one of its biggest tenants, Devon Energy Corp., next summer when the energy company's lease expires.
Meanwhile, Yashouafar faces other legal problems. He pleaded guilty in July to an embezzlement charge after being accused of diverting insurance proceeds after a fire at a Las Vegas condominium development. He must pay $1 million in restitution to Paradise Spa condominium residents before his sentencing in November, Nevada court records show.
Earlier this month, The Oklahoman reported Yashouafar was under federal investigation for submitting questionable reimbursement forms to Oklahoma City officials for asbestos removal.