Posted by Jim Reppond
The Marlborough House, a recent condominium conversion, is officially in foreclosure. A TheSeattleSpecialist blog reader recently commented (Thanks, Aaron!) that The Notice of Foreclosure was posted on the building. I searched the county records and found that on 2/20/2009 a Notice of Trustees Sale (NTS) indeed was recorded showing over $18,000,000 in default. The current date for the sale is set for May 22, 2009 at 10AM on the King County Administration Building steps. These dates often get moved if the lien holder is in negotiations with a potential buyer or a bankruptcy court intervenes.
This is a sad development, but not unexpected. It was reported here several months ago that Live Historic had stopped actively marketing the individual units and was considering turning it back into apartments. They never achieved many pre-sales and it was clear that lenders were not going to allow mortgages to close without a substantial number of units pre-sold. It has been vacant with no activity for a number of months now.
This will be a great opportunity for an investor with some deep pockets to buy-and-hold a fantastic property. Most of the conversion and remodeling has already been done. Once the economy gets back on its feet and inventory drys up a again, this should be a very lucrative investment. (call me if you think that might be you!)