An Ohio lender asked a Baton Rouge federal judge Tuesday to order the foreclosure sale of the Perkins Rowe mixed-use development at a price of $86 million.
Should U.S. District Judge James J. Brady grant the motion by KeyBank National Association, of Cleveland, that decision would mean developer J.T. “Tommy” Spinosa could be personally responsible for payment of an additional $115.9 million to the bank.
KeyBank also asked Brady to expedite the issue and direct Spinosa and three of his Perkins Rowe development firms to file any opposition to the bank’s motion no later than Monday.
KeyBank filed suit against Spinosa and his firms in July 2009, alleging that no payment had been made on a $170 million development loan since October 2008.
Court records show that Spinosa had personally guaranteed repayment of his firms’ debts.
Brady awarded KeyBank and eight participating lenders $201.9 million in a Sept. 4 ruling.
Spinosa reacted by asking the 5th U.S. Circuit Court of Appeals in New Orleans to overturn Brady’s judgment in favor of KeyBank.
In a separate filing, Spinosa asked the 5th Circuit to strip Brady of his authority over the case and send the dispute to state district court for trial.
Both of Spinosa’s motions are pending before the appellate court.
KeyBank told Brady on Tuesday that Cushman & Wakefield appraised Perkins Rowe’s fair market value at slightly over $86 million in March. A foreclosure sale at that price would leave an unpaid balance of $115.9 million on the judgment against Spinosa and his companies.
As guarantor of the original loan, Spinosa could face claims by KeyBank against his personal holdings for the remaining debt.
Since late 2009, Perkins Rowe has been under the court-ordered management of Jones Lang LaSalle Americas Inc., which has produced profits in each subsequent year.
The development has 87 condominiums, 226 apartments, more than 60 shops and restaurants, a bookstore, a grocery store, a fitness center, a movie complex and a pharmacy.
KeyBank spokeswoman Laura Mimura has stated repeatedly over the past year that any ownership change will not be noticed by Perkins Rowe residents, tenants and customers.