Did you know the construction lender on Scott Reed’s comatose K Lofts project in downtown Little Rock recently launched a foreclosure action?
IberiaBank of Lafayette, Louisiana, sued to recover more than $1.4 million owed on an original June 2013 loan of $1.3 million to the ne’er-do-well developer.
Reed of Portland, Oregon, and Brian Corbell of Los Angeles both personally guaranteed the debt of their K Lofts LLC.
According to the bank’s complaint, the borrowers triggered a default by failing to maintain the debt-service ratio, failing to timely complete construction, ceasing construction and more.
The renovated 115-year-old building at 315 Main St. in downtown Little Rock stands mostly vacant, with apartments in a mostly complete state of limbo.
The contractor on the project, Little Rock’s AMR Construction LLC, pulled off the job after April Fools’ Day 2015. The company has a lien claim of $196,440 divided between two contracts.
More than $143,700 is owed on the original $2.1 million contract to redevelop the upper floors of the once-dilapidated five-story building into 32 apartments.
More than $52,600 is owed on an $825,300 contract to repair a partial collapse of the east wall in 2013.
You may recall that AMR filed its own foreclosure suit earlier this year to keep its lien claim in force on K Lofts. At last report, this dispute is headed toward contractually mandated arbitration.
A few weeks shy of the sixth anniversary of trumpeting his K Loft plans, Reed has yet to deliver any completed projects among several failed attempts in Little Rock.