Real Development says it will close on an elusive consolidation loan late next month, freeing almost $1.9 million to settle late vendor bills.
The loan "just south of $7 million" also refinances the $4.8 million in multiple mortgages taken out by Michael Elzufon and Dave Lundberg on the Wichita Executive Center at 125 N. Market, Elzufon said.
It will end months of frustration, Elzufon said, from having to put off creditors and pony up personal cash for delinquent contractor bills and leasing commissions.
"The vendors have been amazingly wonderful," Elzufon said. "I get a goosebump thinking about how appreciative I am to them, when they've been kicked and beaten every which way and still believe in what we have accomplished and still will accomplish."
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The loan was supposed to close in March, but commercial credit markets still haven't thawed, Elzufon said.
"It dried up, and it's not even wet yet," Elzufon said.
As a result, the final payments on a wide range of contracting work on the Market building, along with several commercial leasing commissions on the building, remain unpaid.
"In light of the delay, David and I have spent hundreds of thousands of dollars of our own money paying down as best we can as many of these contractors as we can, $20,000 to help make a payroll, things like that" Elzufon said.
Roger Weast, president of J.P. Weigand & Sons, and Jerry Gray, the company's commercial general manager, said Real Development owes the firm a "pretty substantial" leasing commission, but they declined to disclose the amount.
The bill is "in excess of six months old," Gray said.
"They have been in regular communication with us, advising us of their efforts to pay the bill."
"We all want to be paid, whether it's $5 or $100,000," Weast said. "It's my understanding that with some prodding they've been in communication with us on the bill."