My, how the mighty have fallen. Not a major scoop since we knew this was coming.
One year after the original suit was filed, RiverWalk Crossing has officially entered foreclosure.
Judge Rebecca Brett Nightingale of Tulsa County District Court ruled in favor of American National Bank of Texas in their claim that current owners RWC Management Inc. failed to repay $28.3 million in three loans linked to the property.
RiverWalk Crossing, which has been operating under receivership since February of last year, will soon be auctioned off at a sheriff’s sale.
The suit had also named Jerry Gordon, original owner and builder of RiverWalk’s 125,000 square-foot first phase, as a defendant because of his capacity as guarantor on the first two loans of $17.5 million and $10.4 million granted in 2008.
RWC took out a third loan for $305,393 in 2010.
The city of Jenks has a lien against RiverWalk Crossing of $1.32 million, which was recorded in 2009. Colburn Electric LLC, Aircomfort Inc., Mullin Plumbing Inc. and Hangman Corp also have liens against the property.
The foreclosure sale will first cover payment of the loans as well as sale costs, and if any money is left over after that they will be applied to the liens.
RiverWalk Crossing continued to operate after it was put into receivership last February, with Gail Fair of Property Client Services in Tulsa the receiver.
Tenants in foreclosed properties can legally continue to do business, although Fair was not available to elaborate on future plans for the property.
Current retail tenants were open for business Wednesday, though their numbers have thinned -- the only businesses left on the ground floor of the main part of RiverWalk Crossing are Los Cabos, The Melting Pot, The Mansion, The Cigar Box, Marble Slab Creamery and Photographic Designs by Rachel Williams.
RiverWalk Movies, which was constructed next to the main part of RiverWalk Crossing, is also open.
Carrie Williams, owner of the RiverWalk Crossing Marble Slab Creamery since it opened six years ago, said she first noticed a serious slowdown in foot traffic in 2009, when Gordon sold his remaining stakes in the center to David Salomon of Orda Corp., owner of RWC Management.
Things got worse when American National Bank filed suit.
“We had a good month the first month after that hit, but then people started assuming all the stores were closed,” she said. “People would call us to see if we’re still open.”
Williams said business is very seasonal, though the busy summer months generated enough money for Marble Slab Creamery to survive the lean winter months. She guessed that other businesses weren’t so lucky.
The latest casualty was Gina & Guiseppe’s Italian Ristorante, which closed earlier this month.
Williams said that Property Client Services had been doing a good job of maintaining the property and had added security.
Though retail tenants are largely scarce, the office space on the second floor of two of the three buildings in the main section are mostly occupied.
Tom Nilsson of Nueterra HR Solutions said his business has been doing well since opening in the former management office of RiverWalk Crossing two years ago.
“We don’t have clients that come up, so it’s pretty nice,” he said. “Plus the view here is beautiful.”
Jennifer Tanner, office manager at RiverWalk Dental Spa, said her company is also doing well, though the retail slowdown has had some impact.
“We really relied on people being able to see us when they’re out there,” she said. “Now we’re mostly relying on word-of-mouth.”
Tanner said she believes the center can still succeed.
“If they can get some brand-name businesses down here, it can do well,” she said.
Williams said she’s also optimistic.
“We’re hoping that once this place gets a new owner, things will pick up,” she said.
Read more from this Tulsa World article at
http://www.tulsaworld.com/business/article.aspx?subjectid=32&articleid=20120215_32_0_Oneyea884106
