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Regions Center Ownership Comprised of 32 Companies

2 min read

The owners of the 30-story Regions Center in downtown Little Rock have filed a more detailed account of their debts and assets for the building in their Chapter 11 reorganization case.

The total debt is listed at $30.4 million, according to documents in U.S. Bankruptcy Court in Delaware. The building, the owners said, is appraised at $40.5 million. There are 32 LLCs with an ownership interest in the building.

The largest debt, which is secured by the property and the assignment of leases and rents, is to Wells Fargo Bank, a trustee for a pool of investors who made the loan to the building owners in 2006 so they could buy the property.

The investors have a legal name: the Registered Holders of COMM 2006-C8 Commercial Mortgage Pass-Through Certificates. (In last week’s Whispers, Wells Fargo was incorrectly identified as the lender.)

The gross revenue for building owners was $8.3 million in 2015, up 10 percent from the year before. The revenue, though, had fallen to $6.65 million from Jan. 1 through Dec. 9, 2016, the date they filed for bankruptcy protection.

The bankruptcy filing also showed that in March the building was struck by lightning, causing $250,000 in damage.

In the initial filings in U.S. Bankruptcy Court in Delaware in December, the owners listed estimated debts of between $10 million and $50 million.

The bankruptcy filing put a hold on all legal proceedings against the property owners, including the foreclosure lawsuit filed against them in November in Pulaski County Circuit Court.

An attorney for Regions Center’s owners, Mark Rubin of Florida, told Arkansas Business in December that the owners expect to be out of bankruptcy in the first or second quarter of 2017.

“We have a plan to reorganize the property and pay off the loan and to finance it with a new lender,” he said.

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