KANSAS CITY, KAN. — The Legend Outlets shopping area in Kansas City, Kan., remains open while a foreclosure lawsuit is settled.
KKR Real Estate Fund Holdings offered $131.5 million for the shopping center at an auction Friday. That group includes RED Legacy of Kansas City and the New York investment firm Kohlberg Kravis Roberts. A backup bid of $131 million was submitted by CRG Acquisitions LLC.
The prevailing bid was to be determined Monday, but no updates were available Monday night.
E3 Realty Advisors of Los Angeles was appointed receiver of the shopping center last year after U.S. Bank filed a foreclosure lawsuit because RED Legacy, the original Legends developer, owed $179.4 million.
Dan Lowe of RED Legacy said the group intentionally stopped payments to force the auction because the debt needed to be restructured
Comments
gccs14r 3 months, 2 weeks ago
Not paying your bills in hopes that your creditors will give you a better deal never seems to work out in favor of the borrower.
chootspa 3 months, 2 weeks ago
Unless you're super rich. They play by a different set of rules.
Armstrong 3 months, 2 weeks ago
Yea, because if your super rich you dont have enough money to pay your bills
Agnostick 3 months, 2 weeks ago
For example, someone with personal wealth of $20 million... and debt of $250 million...
TheSychophant 3 months, 2 weeks ago
If the offers don't get any higher, looks like the bank is holding the bag for a deficiency of almost 48 million. Now that's a big chunk of change.
flyin_squirrel 3 months, 2 weeks ago
But, but, but, developers always get rich and never risk anything.
deec 3 months, 2 weeks ago
What risk did they take? They intentionally quit paying their debt so they could cut a better deal. Meanwhile, they got abated property taxes and got to keep all or some of the sales tax revenue as well as sales profits. Since they have the highest offer, they'll get to keep their property but they'll have to split future profits with the vulture capitalists who partnered with them.
LarryNative 3 months, 2 weeks ago
It all hinges on if there was any collateral on the original loan. The original co. is on the hook for the balance which will then file bankruptcy but if there was any collateral, it will be seized. Only the insiders know what risk the group took.
Agnostick 3 months, 2 weeks ago
"Okay, okay, okay, okay, this is the best part, okay? You make a tax deduction... on interest payments... you don't even make! Am I an innovator? Am I a genius? "
KRichards 3 months, 2 weeks ago
This guy is still developing and still getting rich, just check the news and his website. He only owns 5% of the Legends, Morgan Stanley backed by a private German investment firm owns the other 95%.
chedder 3 months, 2 weeks ago
Owing the bank $100 is your problem. Owing the bank $100 million is the banks problem.
just_another_bozo_on_this_bus 3 months, 2 weeks ago
Unless the bank is "too big to fail," and then it's the taxpayers' problem.
SouthernMan 3 months, 2 weeks ago
Wonderfully intellectual posts by such happy people.
tomatogrower 3 months, 2 weeks ago
Too bad Wyandotte County didn't put in their deal that if the company declares bankruptcy or forecloses, then all the taxes they didn't have to pay must be paid. Then this guy who will walk away rich, would have to cough up a bunch of money. Another community screwed by the new type of "entrepreneur". How can you conservatives admire these kind of immoral tactics, and still call yourself good little Christians? Hypocrites.
TheSychophant 3 months, 2 weeks ago
Oh, but you don't understand. God will forgive them. You can be the biggest scoundrel in the world, but if you merely profess a belief in Jesus Christ as your Lord and Savior, all is good, and you still get to go to Heaven.
mikekt 3 months, 2 weeks ago
Do I need glasses or does this story say that the party filing bankruptcy is attempting to be part of a group,.... of more or less supposedly others,.... that are buying it's own bankrupt assets, at a great discount of the original $ debt .
Sounds like a story,.... to me . HA, HA, HA !!! How Unique !!!!!
Most folks who do that, use a gun, a mask & are chased down by the police and thrown into a jail by a judge, instead of being handed the fruits of their efforts, by a judge .
Banks are not my most favorite folks,......but neither is anyone else, who robs others with a fountain pin ....and a slick lawyer, or two !!!!!
This story reads like saying "stick 'em up", to me;.....but said in sign language that few understand for what it really means .
mikekt 3 months, 2 weeks ago
Try doing that with your home mortgage ! They'll have you at the homeless shelter in no time !
Apparently, Jesus & the Wizard of OZ love developers,.....more than those mere home mortgaged folks,.... in Kansas.... & will forgive their every financial sin, as long as they agree to faithfully "prey" on the public trust, thru the court systems .
Silverhair 3 months, 2 weeks ago
There are STAR bonds involved in the financing for the Legends too, which diverts sales tax revenues from the state general fund to pay off the shopping area. Puts Kansans at risk for a development that tanks. They are banking on future sales taxes to pay off the development. The taxpayers are on the hook to fill the gaps in the state general fund as the sales taxes were diverted for a specific purpose. That STAR bond stuff needs to stop. There are property tax breaks involved also. The state is now trying to fill those gaps by adjusting the state income tax.
merrill 3 months, 2 weeks ago
A special sales tax is not doing so well. Not only Wyandotte County that has been taking a beating according to radio news because this super duper retail project is failing to meet its' tax dollar revenue projections.
The special sales tax is loading up the pockets of the retailers = what a profit making scam on consumers.
There are only so many retail dollars anywhere so the larger the retail pie becomes the fewer and fewer the profit dollars become. Where did the economics of saturating an already flooded retail market come from? Developers, stupid bankers and uninformed local government politicians.
Then again Legends may be well over saturated and/or too far away for everyday shoppers. Moving to the country is exciting except when your friends sooner or later tire of making the drive. Then one realizes what privacy is all about.
LarryNative 3 months, 2 weeks ago
Retailers do not retain the "special sales tax", the developer gets it.
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