LACEY - A commercial real estate company with ties to South Sound has been hired to sell property owned and managed by developer Tri Vo, a 337-acre parcel north of Interstate 5 near Cabela's that at one time was planned for a mixed-use development called Lacey Gateway Town Center.
Pacific Real Estate Partners of Bellevue, which also has an office in Olympia, was jointly hired by the Vo-managed Hawks Prairie Investment LLC and secured creditor HomeStreet Bank of Seattle as allowed by court order, HomeStreet spokeswoman Terri Silver said Tuesday.
Silver is referring to the U.S. Bankruptcy Court for the Western District of Washington and the Chapter 11 bankruptcy that Hawks Prairie Investment and Vo filed in August. Since August, a bankruptcy plan has emerged in which Vo must sell the property to pay off creditors. That process started Monday, said Troy Dana, a commercial real estate broker for Pacific Real Estate.
The property does not have a “for sale” price; instead, the commercial real estate company is accepting bids for the land as part of a bankruptcy process called “363.” Commercial real estate broker Ryan Haddock, who also is a broker with Dana, said the process works like this:
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• Original bids are due the week of Feb. 25, after which the bids are reviewed by a bankruptcy judge and a “stalking horse” – the best bidder at the time – is identified. The best bid is not necessarily the highest bid, but one that has the best chance to finalize the transaction.
• That bid is then made public, giving other bidders the chance to adjust their bids. Following the competitive bid process, the bankruptcy court makes a decision on the winning bidder.
If the bid process goes as planned, a sale of the property could close in mid- to late March, Dana said.
Although the winning bid has yet to be determined, it likely will have to be close to what HomeStreet Bank is owed, about $33 million, according to court documents. If a bid is not accepted, it could mean that HomeStreet forecloses on the property, although the foreclosure process typically doesn’t result in clean title to property, Haddock said.
“This is the cleanest way to obtain title,” he said about the 363 bid process.
Dana said he’s hopeful about attracting bidders.
“The economy still is impacting real estate transactions, but there’s enough economic optimism now that it should capture interest from a wide variety of potential buyers,” he said. Since Monday, five potential buyers have contacted his office, Dana said.
Rolf Boone: 360-754-5403 firstname.lastname@example.org www.theolympian.com/bizblog