Review / Pittsburgh Tribune – Review – Union Trust owner, California bank reach agreement
0 Comments | Tribune – Review / Pittsburgh Tribune – Review, Sep 4, 2009 | by Sam Spatter
An agreement was reached between a California bank and the owner of the Union Trust Building, Downtown, which will resolve $3.6 million in liens filed against the owners of the 11-story building, officials said Thursday.
“We have notified all the lien holders that they will be paid amounts due them by this weekend and that should allow resumption of building renovations,” said Jack Norris, managing director of CB Richard Ellis.
Norris said documents were signed Wednesday between the building owner, Mika Realty Trust of California, and the mortgage lender, California National Bank of Long Beach, Calif., that will satisfy all 10 mechanic liens.
“The agreement calls for a full construction loan for the building, which will pay for tenant improvements and work on the building,” he said. CB Richard Ellis is marketing the building to office and retail tenants.
The exterior work will not be completed in time for the G-20 summit on Sept. 24 and 25, but will allow First Commonwealth Bank to locate a office on Grant Street, he said.
California National Bank filed a foreclosure lawsuit in May, claiming that Mika Realty was required to pay bills to prevent the filing of liens or give the bank 150 percent of contested amounts. The bank holds a $34.5 million mortgage on the building. Christopher Reeder, an attorney with the Los Angeles law firm Reeder, Lu & Green LLP, which represents Mika Realty, said it owed the bank $25.8 million, with $10 million in dispute.
Norris said yesterday the bank did not fund renovations for nine months, while it sought more equity from Mika “sooner than later.” The dispute has been resolved, but Norris declined to detail the financial arrangements.
The main tenant in the building is Siemens Power Generation, with about 700 employees.
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