On Friday we tweeted about the Burien development, Burien Town Square Condominium, suffering foreclosure. The most recent article in the Seattle Times about the foreclosure has provided some details of the issue and what future plans are in store. Although there were high hopes for the project to revitalize the downtown Burien area, when condominium sales weren’t happening (6 of 124 units sold) and space wasn’t leasing, the developers (Urban Partners) were ultimately forced to hand it over to the lenders. The construction lender was Corus Bank of Chicago, but in 2009, their assets were seized and 40% interest in Corus’ real-estate loan portfolio was sold to ST Residential.
Urban Partners owed over than $34 million in principle on the $38.5 million construction loan. However, Urban Partners says the loan agreement specified high asking prices for the condos and retail space, which is partly the cause for its ill fortune. ST Residential did not provide any answers as to how they are planning to keep the project afloat. Burien residents can only hope that the issue is resolved and the community can continue to grow.