The Main Street Lofts, inside the old M.M. Cohn Co. building at 510 S. Main St., is behind schedule. It's one of developer Scott Reed's projects.
It appears one item is up for arbitration review before a general contractor’s foreclosure action on Main Street Lofts begins fully tracking in court.
Main Street Lofts LLC and Main Street South LLC asked the arbitrator to split the $896,756 award for unpaid work between properties.
The modest proposal?
Assign $428,531 to the 62,688-SF M.M. Cohn Building at 510 Main St. and $468,225 to the 21,000-SF Arkansas Annex at 514 Main St. and 41,816-SF Arkansas Building at 524 Main St.
As it stands, the full amount is linked with the entire unfinished three-building, 125,000-SF redevelopment at 510-524 Main St.
The request was made under the heading of “clarification and correction.”
The position of Little Rock’s AMR Construction LLC is there is nothing to clarify or correct on this point because it was already argued during the arbitration case.
And the arbitrator ruled in favor of AMR’s award against the entire project.
What’s the big deal about dividing the award?
Maybe the change would facilitate the sale of the M.M. Cohn Building, or maybe it’s merely a delaying tactic.
Once this question is addressed, the arbitration award should become a judgment that is expected to generate a battle for pecking order among creditors.
Riverside Bank of Sparkman (Dallas County) and AMR Construction are jockeying to be first in line.
When the foreclosure train gains momentum, it will be interesting to see what sort of personal guaranties developer Scott Reed and his cohorts have on the line.
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