The latest foreclosure sale for the former 3M site at 6801 River Place Blvd. is set for Nov. 5. The original foreclosure sale was cancelled a few weeks ago for the property, which includes 11 buildings and a power plant on 156 acres. The site was renamed Silicon Hills Campus LLC by World Class Holdings, which was raided by the FBI on August 14.
World Class avoided a previous foreclosure sale that had been scheduled for Oct. 1.
“Foreclosure sales that were cancelled last month (Silicon Hills Campus and 900 Chavez et al) are back on,” posted Jan Buchholz, Austin real estate journalist who researches details and publishes them at ATX Real Estate News (atxrealestatenews.com).
Austin Business Journal published a story Oct. 16 stating that an Oct. 15 hearing in Travis County District Court had been “delayed mutually by attorneys for World Class Capital and for the owner of the defaulted $64 million note, Tuebor REIT Sub LLC.”
ATX Real Estate’s Buchholz posted that “Deed records show, however, that a notice of substitute trustee sale was refiled Oct. 15 with the Travis County Clerk and a foreclosure sale is now scheduled for Tues., Nov. 5. Meanwhile, court records indicate that Tuebor lawyers have submitted a motion to ‘enter judgment’ and ‘other notice,’ both recorded Oct. 18 with the Travis County District Court.”
ABJ also reported that on Oct. 18, Tuebor filed a motion to authorize the Nov. 5 foreclosure sale. A hearing has been scheduled for Oct. 30 at 9 a.m. to consider the motion.
If all goes through, the sale of the former 3M property is scheduled to be held between the hours of 10 a.m. and 4 p.m. on Nov. 5 on the west steps of the Travis County Courthouse at 1000 Guadalupe St.
Reports indicate that some four weeks ago Travis County Judge Tim Sulak granted a temporary restraining order to the Silicon Hills Campus and that order expired in mid-October.
ABJ reported that “Tuebor also suggests in the lawsuit that World Class has ‘announced it would not be seeking to reschedule’ a delayed hearing on its application for a preliminary injunction at the campus, which had been scheduled for Oct. 15. According to Tuebor, a second temporary restraining order ‘is not an option’ now because World Class declined to pursue an extension before the original order expired.”
ABJ reported that Tuebor alleges in its latest motion that the loan now has an outstanding balance of more than $61 million.
The value of the property was assessed at $81 million by the Travis Central Appraisal District in 2019. World Class said in court filings the property is worth as much as $200 million, ABJ reported.
ATX Real Estate’s Buchholz also posted about other World Class properties. “With respect to a handful of properties that World Class owns (near the intersection of the northbound I-35 Frontage Road and East Cesar Chavez St., the former Carmelo’s restaurant property downtown and land at 7400 S. Congress Ave.), it appears that the mystery lender that emerged late last month — ATX Lender 5 LLC — has now filed a notice of substitute trustee sale, also scheduled for Nov. 5. Locke Lord attorney Paul Pruett, a partner in the law firm’s Houston office, represents ATX Lender 5, which was formed Sept. 19. Bizapedia shows the principal of that entity is Wilson, Cribbs & Goren PC, a law firm in Houston. The size of the defaulted loan is significant — $22.9 million.”
Earlier report published in the October 20, 2019 edition of Four Points News:
The future for the former 3M campus in Four Points remains uncertain.
World Class Holdings — owner of the 156-acre site off of River Place Boulevard — is being sued by its lender, Tuebor REIT Sub LLC.
Austin Business Journal reported on Oct. 16 that lawyers on both sides agreed to delay a scheduled Oct. 15 hearing on the future of the campus.
ABJ reported that “Tuebor filed the lawsuit against Silicon Hills Campus on Aug. 30, the same day the loan matured and just weeks after World Class’ headquarters was raided by the FBI, which no one has been charged with a crime and federal authorities have declined to comment on the matter.”
The property at 6801 River Place Blvd. was renamed Silicon Hills Campus and has 11 buildings and includes about 1.3 million square feet of office space.
ATX Real Estate News’ Jan Buchholz reported earlier that the Silicon Hills Campus default involves a $64 million loan.
Tuebor requested to appoint a receiver to take control of the site.
The site is valued in court filings at $200 million, including the power plant on site. It was assessed at $81 million by the Travis Central Appraisal District in 2019, according to ABJ.
The earliest the 3M campus case could return to the courtroom of Travis County Judge Tim Sulak is the week of Oct. 28, ABJ reported.