Appraisal shows development worth $95 million
The Perkins Rowe mixed-use development in Baton Rouge was valued at $9 million more last month than the $86 million value placed on it in March, according to documents filed in federal court Monday.
KeyBank National Association, of Cleveland, Ohio, and Baton Rouge developer J.T. “Tommy” Spinosa have fought for 40 months in a foreclosure suit over the project’s ownership and value.
U.S. District Judge James J. Brady awarded KeyBank a judgment of $201.9 million — in principal and interest owed on construction loans — against Spinosa and three of his Perkins Rowe companies in September.
The judge stripped Spinosa of control of Perkins Rowe in late 2009 and appointed the Chicago firm of Jones Lang LaSalle Americas to manage the development, which is near the intersection of Bluebonnet Boulevard and Perkins Road. It includes 87 condominiums, 226 apartments, more than 60 shops and restaurants, a bookstore, grocery store, fitness center, a movie complex and a pharmacy.
KeyBank obtained an appraisal in March that placed the development’s market value at $86 million. The lender argued that appraisal could be used as the development’s base value at a foreclosure sale.
Spinosa, who personally guaranteed repayment of his firms’ loans from KeyBank and eight participating lenders, later argued that KeyBank’s appraisal was too low.
Brady told Spinosa on Nov. 2 that he had 30 days to obtain a separate appraisal and also told KeyBank to update its appraisal within that same 30-day period.
“Perkins Rowe has known that an appraisal would promptly be needed for foreclosure purposes for months now,” Brady wrote Nov. 2 in his ruling and order.
The judge added that he viewed the response by Spinosa and his Perkins Rowe companies to his foreclosure award to KeyBank “as just one more attempt to delay matters.”
A check of case records at 7 p.m. Monday did not show any separate appraisal had been filed by Spinosa and his companies.
Spinosa and his New Orleans attorney, Mark R. Beebe, did not respond to telephone and email messages requesting an interview Monday afternoon.
KeyBank’s updated appraisal was conducted by the New York firm of Cushman & Wakefield Inc., which reported that Perkins Rowe’s value had increased from $86 million in March to $95 million by Nov. 19.
The $9 million increase resulted from a number of business changes, according to the new appraisal signed by Cushman & Wakefield’s Richard W. Lawtella.
Lawtella noted that retail sales at the development are running seven percent higher in 2012 than in 2011. He added that low interest rates and increased interest in lifestyle centers, such as Perkins Rowe, also contributed to the higher appraised value.
A sale at $95 million would still leave Spinosa and his firms owing KeyBank $106.9 million, plus more than $32,000 in additional interest for each day the debt has remained unpaid since Brady’s Sept. 4 ruling.
Spinosa has an appeal pending before the 5th U.S. Circuit Court of Appeals in New Orleans seeking to reverse that decision.
Two 5th Circuit panels have denied three of Spinosa’s requests in recent months.