The 144 unsold condos in Montgomery Plaza on the city's near west side sold in a foreclosure auction Tuesday for $18 million to the Dallas investment fund that initially bought the note on the property from Citibank in December.
Wealth Diversified Fund was the only bidder in the auction on the steps of the Tarrant County Courthouse. It is unclear whether the amount represents the unpaid balance of the note it bought from Citibank. Attorneys representing Wealth Diversified Fund would not comment after the sale.
Plano-based OMP Development borrowed $75 million from Citibank in 2007 to buy the upper seven floors of the historic Montgomery Ward store and catalog building on West Seventh Street near Trinity Park. OMP had been redeveloping the building into 240 luxury condos.
The auction was for all 144 units together. Some of those units are believed to be under contract to buyers.
After buying the note from Citibank, Wealth Diversified Fund transferred the note to Lowry Donkey Farm, a Granbury limited partnership of real estate developer John Femrite. Wealth Diversified Fund posted the note for foreclosure early last month.
Femrite did not return phone calls seeking comment Tuesday.
OMP Development and Thos. S. Byrne, the project's general contractor, are also in the midst of lawsuits over allegations of unpaid bills.
Byrne and several subcontractors have liens on the property.
Montgomery Ward closed the store in 2001. Kimco Real Estate bought the 45-acre site with Dallas-based Weber & Co. as its development partner. Weber developed the first floor into shops and restaurants and the SuperTarget and junior anchor stores at the back of the property.
Sandra Baker, 817-390-7727
Read more: http://www.star-telegram.com/2011/02/01/2815409/144-montgomery-plaza-condos-sell.html#ixzz1CqCVEHmY