The Bella Sera condominiums project has been pushed into receivership, as the bank that loaned more than $16 million for the development seeks to recover unpaid funds.
The project, at 4500 Bob Billings Parkway, now is being managed by Block Real Estate Management Co., based in Kansas City, Mo.
Judge Peggy Kittel approved the receivership order this week in Douglas County District Court.
M&I; Bank filed suit last month, seeking the appointment of a receiver and foreclosure on the 37-unit building, which also includes a workout room, pool, theater and other communal amenities.
“We’re working to keep the whole project going while the banks and the parties and the court determine what the appropriate outcome is,” said Harry Drake, Block’s executive vice president and chief operating officer.
The suit seeks repayment from Bella Sera Capital LLC and Bella Sera Development LLC, owners of the project. Developers and leaders of the project have been Jes Santaularia and Karl Capps.
As of July 30, according to the suit, the owners owed $13.5 million to M&I; Bank in principal and interest, with interest continuing to accrue at a rate of $2,227 per day.
Phil Harrison, who purchased the project’s first condo before construction even had started in 2006 and continues to live there, said he was sad to see the developers lose their property, which had become inevitable as the residential market sagged.
But he’s pleased to see the project getting a chance to turn a corner.
“It’s kind of like having surgery: I’m sorry I’m going to have it, but I’m happy to get it over with,” said Harrison, a real estate investor who is former president and managing broker for the former Gill Real Estate and Insurance in Lawrence.