United Founders Tower will be sold Nov. 5 at a sheriff's sale to pay off mortgages under default on the 20-story office building.
The sale is part of an agreement reached between parties late last month to settle a foreclosure action brought against the property by United Founders Life Insurance Co. The agreement was approved in a judgment delivered by Oklahoma County District Judge Joe Cannon.
July 29, United Founders sued National Capital Real Estate Trust, a California real estate investment trust and Northwest Investors Ltd., an Oklahoma limited partnership.
United Founders loaned Northwest $5.8 million in October 1978 to acquire the Oklahoma City property at 5900 Mosteller Drive.
Northwest sold the building to National Capital, then called University Real Estate Trust, in 1981 for $11.2 million. The California group assumed the loan.
In the court settlement, Northwest and National Capital agreed to United Founders' allegation that the loan was in default. Their rights to the property were waived, clearing the way for the sheriff's sale.
An attorney for United Founders said two weeks ago that litigants wanted an agreement to avoid further court costs.
The sale of the building will be held at the Oklahoma County Courthouse.
Proceeds will be used first to pay costs of that proceeding. Then, money will be used to satisfy United Founders' claim. Finally, proceeds will go to pay off two loans in default made by J&D Land Co. to National and delivered to Northwest, the court judgment says.
The first loan was for $617,000, with $589,000 remaining to be paid on the mortgage, the judgment says. The other loan was for $4.57 million. About $1.7 million remains to be paid on this mortgage, the judgment says.
Cannon ruled these mortgages also were in default.
A temporary receiver is operating the property and collecting rent from the 40 tenants in the building. BIOG: NAME:Archive ID: 283252