The note-holder of Crestview Place Shopping Center, at the southwest corner of 21st and Woodlawn, is seeking to foreclose on the property.
SW Loan P LP contends in its suit that the St. Louis businessmen who bought the strip center 10 years ago owe $1.1 million, plus interest and fees.
The owners, Crestview Place Shopping Center LLC and several individual St. Louis real estate executives, borrowed $1.6 million to buy the center in 2002. They own and manage a portfolio of commercial property, including Cherry Creek Shopping Center on South Rock Road, Eastridge Shopping Center on South Woodlawn and El Dorado Plaza Shopping Center in El Dorado.
Gary Rosenbaum of MMG Realty in St. Louis, one of the investors, said SW Loan P was being unreasonable.
The St. Louis investors got the original mortgage from Stillwater National Bank, which is now Bank of Kansas, and twice renewed it. The note was set to mature in March of this year and had to be paid off or refinanced.
Recently, the bank sold the note to SW Loan P, which Rosenbaum said was a division of Starwood Hotels and Resorts.
There was little prospect of having the note renewed, Rosenbaum said, so the owners found a buyer to take the strip center for slightly less than was owed.
But SW Loan P has refused to allow the short sale, and filed to foreclose, said Rosenbaum. He said SW Loan P bought the loan at a discount and now is holding up the sale in an attempt to extract more money from the deal.
Attorney David Goldberg of Polsinelli Shughart in Kansas City, who represents SW Loan P, had no comment.