United Founders Life Insurance Co. of Oklahoma City has sued to foreclose on United Founders Tower for non-payment of a $5 million loan held by California and local real estate partnerships, shows a lawsuit filed Tuesday in Oklahoma County District Court.
The insurance company has asked that a receiver be appointed to operate the 20-story property at 5900 Mosteller Drive. Owner of the building is National Capital Real Estate Trust, a California real estate investment trust. It was formerly known as University Real Estate Trust.
It purchased the building for $11.2 million in 1981 from Northwest Investors Ltd., an Oklahoma limited partnership. Northwest, headed by local developer Ron Burks, previously had bought that building along with adjacent properties for $15.5 million in 1978.
It retained 25 percent of the tower and development rights to adjacent land in the 1981 sale.
The partnership was named as a defendant in Tuesday's foreclosure action. Other defendants are John Kilpatrick Jr. and Gerald Henderson, doing business as J&D Land Co. Northwest was included in the suit because it originated the loan for the building in 1978 when it purchased the property, said Bert L. Belanger, an attorney for the plaintiff.
Also, the partnership still holds some development rights to adjacent property and easement rights for use of the tower parking, he said.
Northwest received a $5.8 million loan for the building in October 1978 from the insurance company. National paid Northwest $4 million in cash for the building in 1981, with the balance of the $11 million price tag handled through assumed mortgages.
Default on the loan for the building occurred with failure of National to make payments on June 1 and July 1 of this year, the insurance company said.
Balance on the loan is $4.92 million. BIOG: NAME:Archive ID: 276733