Receiver appointed to take over building at World Market Center
A District Court judge on Wednesday approved the appointment of a receiver to take over operation of the World Market Center's Building B.
Faced with falling occupancy and lower rents from those furniture companies that remained as tenants, the World Market Center defaulted on its $345 million mortgage one year ago. Since then, owners have tried to rework the loan with lenders.
The receiver is expected to take over next week.
A negotiator retained by the lenders reported in January and February that the lenders and World Market Center were "finalizing the terms of a loan modification and reinstatement," according to the real estate research firm Trepp. In the March report, that language disappeared but it was unclear why.
In addition, reports dating back a year showed a forebearance agreement being extended. That expired on Feb. 28. Under a forebearance agreement, a lender voluntarily agrees not to take any repossession actions.
A receivership motion has also been filed for Building A, which has a $225 million mortgage. This is scheduled to be heard next month.
The $488 million loan on Building C comes due in full at the end of this year, but there has been no comment on its status.
World Market Center president Robert Maricich said operations would continue normally for the near term, but he could not say how the receiver would approach his position.
Contact reporter Tim O'Reiley at
toreiley@reviewjournal.com or 702-387-5290.
