The proposed $3 billion Wade Park mixed-use development was granted a stay from foreclosure auction on Tuesday, but one analyst said the high-profile project could be posted for foreclosure again in the near future.
The stalled development was up for foreclosure auction on Tuesday after lenders behind Wade Park foreclosed on construction loans made to Wade Park Land LLC, an affiliate limited liability company of Atlanta-based Thomas Land & Development
“It was crazy to see that Wade Park was posted. You don’t see developments in that prime of location up for foreclosure,” said Curtis Roddy, president of Roddy Information Services, a firm that tracks the foreclosure market in North Texas.
“We expect it to be posted for foreclosure again,” he added. “We’re not sure yet if they declared bankruptcy, which would obviously stay a foreclosure auction. We would expect to find out about that hopefully in the next month if that did happen.”
Traditionally, lenders post a property for foreclosure numerous times before going through with the auction in hopes of turning a foreclosure threat into some serious monetary remedies. But this isn’t a typical property being posted for foreclosure.
Frisco is a fast-growing corporate mecca feeding off the success of nearby Legacy West in Plano, with Wade Park being one of the properties in contention for big corporate relocations, such as Toyota North America. The automaker ultimately decided to put its new North American corporate home in Legacy West.http://www.whitening-info.com/
Stan Thomas, the master developer of Wade Park, has not responded to interview requests. Thomas has had similar financial problems arise in properties in Atlanta and Nashville, where the longtime developer filed for bankruptcy to protect assets.
“It would take awhile for a bankruptcy filing to become public,” said Roddy, who said, if filed, he expects it to become public knowledge within weeks.
Another possibility: Thomas is trying to work with lenders to appease past due notices.
But Roddy said he hasn’t seen any modification documents, and the lenders behind the project, New York City-based Gamma Lending Omega LLC and Farmers Branch-based Bamcap Partners LP, have already modified loans in hopes of seeing the project get off the ground.
Last year, Gamma Lending loaned Wade Park Land LLC nearly $83 million to help fund the ballooning development in Frisco, which Thomas said had become a “much denser and bigger” project than he originally anticipated. Last year, Thomas told the Dallas Business Journal that Wade Park had become delayed as the project grew in size and costs.
Wade Park quickly became part of an anticipated growth corridor of Frisco, with city boosters marketing the mile stretch of roadway along the Dallas North Tollway as the “$5 Billion Mile.” Other projects, such as the Dallas Cowboys worldwide headquarters at The Star in Frisco and Frisco Station, have gained traction as the city’s mixed-use developments take shape.
In the last seven months, various construction electric, plumbing and engineering firms have filed mechanics liens against Wade Park Land LLC, claiming they had done work on the mixed-use development and had not been paid.
Thomas had initially planned for Wade Park to include up to 6 million square feet of office space, 1 million square feet of retail space, 2,800 luxury apartments and two hotels. The Whole Foods on the north side of the property is the first and only portion of the project that has made its way out of the ground, though it has yet to be completed.
Sources say Wade Park had begun losing announced retail and restaurant tenants after it became apparent the development wouldn’t be ready for customers in 2017, as planned.
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