Bank seeks receiver for Portland's Bayside Village
Bayside Village, Portland's first private housing development for college students, could be put into receivership after developers defaulted on the nearly $21 million mortgage.
KeyBank, which holds the mortgage for the 100-unit complex on Marginal Way, filed a lawsuit last week in U.S. District Court asking for control of the property to be turned over to local firm Boulos Property Management, according to the Portland Press Herald. The bank in court documents said the developers owe the full $20.82 million they borrowed in July 2007 as well as more than $30,000 in interest. Developers also owe nearly $200,000 in back property taxes and would have been responsible for $318,367, but receive a $120,000 annual tax break from the city. The bank also claimed the property, which opened in the fall of 2008, is 60% vacant.
Joseph Cloutier of Rockport, lead developer and manager of Bayside Village Student Housing LLC, was unavailable for comment. Bayside Village has until June 23 to respond to the bank's motion.
Bayside Village was the state's second private housing development for college students. Pennsylvania-based College Park Communities opened Orchard Trails, the state's first private student housing complex, in Orono in 2006.
Go to the article from the Portland Press Herald >>
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