Real Development officials said Monday that they want to sell three Wichita properties to raise money for a downtown condo project stifled by the company's financial problems.
Dave Lundberg, a partner in Real Development, said the group's entire Wichita portfolio is for sale for the right price, but the group isn't actively trying to liquidate its local holdings.
The sales are intended, city officials said, to raise enough capital to begin the renovation of Exchange Place at Douglas and Market into 230 apartments and a high-tech parking garage.
Real Development is asking $200,000 to $275,000 for the 7,000-square-foot Hubris building on South Market, Lundberg said.
Never miss a local story.
The Minnesota Guys also want to unload a vacant condo at the Lofts on St. Francis and an empty floor in the Orpheum office building. Asking prices were not disclosed.
"I owe about $200K on the Hubris building, so I'd just like to sell it," Lundberg said. "The other two are free and clear.
"I was kind of shocked, frankly, to look at our portfolio and see that we had anything actually paid for that we could sell free and clear."
Lundberg said that Real Development isn't leaving Wichita.
"I hate to say it, but we're more likely to buy something else than we are to liquidate," he said.
"You know, everything I own is for sale every day of my life," Lundberg said. "If someone gives me an offer for more than I think they're worth, I'm going to sell it."
City officials are aware that the properties are on the market, said Allen Bell, the city's urban development director.
"They're doing this to enable them to continue with the Exchange Place project," Bell said.
"We have a condition placed on them where to continue with that they have to pay off all creditors in Wichita Executive Centre. In order to do that, they're liquidating."
Wichita Mayor Carl Brewer and City Council member Paul Gray reiterated Monday that the city is finished providing financial incentives to Real Development.
"Are there opportunities out there for others if they don't use their downtown buildings? Yeah," Brewer said.
"There are people out there right now who want these buildings to do something with. ... If they want to sell them, there are people out there to buy them."
Lundberg said talks continue on an elusive $6 million refinancing plan for the Wichita Executive Centre at 125 N. Market, this time focusing on a couple of Midwest lenders.
"We're closing in two weeks, which is what we've been thinking for a year now," Lundberg said, chuckling.
That refinancing plan, on and off over the past nine months, is required to generate enough capital for the company to pay off about $1 million in unpaid creditors.
If those creditors aren't repaid, the company will lose $10.3 million in tax increment financing from the City Council.
Real Development also is waiting to hear from the Department of Housing and Urban Development on an application for a $30 million loan, the base funding for the $46 million Exchange Place project.