At least for now, First Security Bank of Searcy doesn’t want a receiver appointed for the Bank of America Plaza in downtown Little Rock.
If you recall, First Security sued the owner of the 290,680-SF building — 200 West Capitol LLC, a California investor group — for allegedly defaulting on a $8.4 million loan.
In addition to asking to foreclose on the loan, First Security wanted a receiver appointed, according to the lawsuit filed last month in Pulaski County Circuit Court.
But earlier this month, First Security filed a motion to withdraw its request for a receiver. The bank said in a filing that it “has decided not to seek the appointment of a receiver at this time.”
But it offered no other details, according to the filing by its attorney Gary Jiles of the Jiles Firm of Conway. First Security said it wanted to keep its right to ask for a receiver at a later date.
Meanwhile, 200 West Capitol and Edward D. Corbell of California have filed an answer in the case. Corbell is a managing member of Landmark Equity Investments LLC, which is the managing member of 200 West Capitol. He personally guaranteed the loans, according to the complaint, and is named as a defendant in the case.
First Security said in the lawsuit that in November 2020, 200 West Capitol borrowed $8.4 million and included the mortgage as security for the loan. First Security also provided 200 West Capitol with a $150,000 line of credit.
200 West Capitol hadn’t made a payment on the $8.4 million loan since June 15, and it hasn’t made a payment on the line of credit since Aug. 15, the suit said.
200 West Capitol and Corbell denied the allegations in the complaint, according to the filing by attorney John Buzbee of Nixon Light & Buzbee of Little Rock.
Buzbee also said in the filing that Corbell “has, at all relevant times, lacked the requisite capacity to execute documents binding himself or any entity.”
There were no other details offered on whatever that means.
200 West Capitol and Corbell also said that they were “lulled into a sense of security regarding their status by written and oral communications” from First Security, and the bank should be prevented from moving forward with the foreclosure procedure.
It’s been a difficult few months for 200 West Capitol. It also remains in a legal battle with its major tenant, the Wright Lindsey Jennings law firm, over rent and the building’s condition.