Negotiations on the sale of Carriage City Plaza, including the 102-unit hotel that’s been vacant for 2 1/2 years, have fallen through with the leading potential buyer.
Redevelopment Agency Executive Director Leonard Bier briefed commissioners during his report at the March 2 Redevelopment Agency meeting.
After “quite a few months” of negotiations, AST Development and Amalgamated Bank did not come to agreement, Bier said. Amalgamated does not own the 16-story condo-hotel but has been working as an agent of a pension fund (LongView ULTRA Construction Loan Investment Fund) that owns the property.
Last spring, Bier said Amalgamated Bank started a process of an auction-style sale of the 16-story property, which went into foreclosure in 2010 and was acquired by a pension fund. The pension fund acquired about 160 of the 209 units in the building, which it now leases, as well as the ground-floor retail space and hotel. Hotel Indigo left in September 2013 after about five years in the space.
Bier could not say why negotiations did not culminate in a sale. The bank is “very tight lipped,” giving out very little information, including a confidentiality agreement for the parties involved. As part of a process that started last year, the bank had pre-qualified buyers through a Request For Interest (RFI) and then Request For Proposal (RFP). Whether the bank goes back to those potential buyers still interested is unclear.
The property’s owner, 80 E. Milton Ave., LLC, is a subsidiary of a pension fund (LongView ULTRA Construction Loan Investment Fund), of which Amalgamated Bank is a trustee and was the original lender for the $65-million project.