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Scott Reed Faces New Foreclosure Over K Lofts

Scott Reed Faces New Foreclosure Over K Lofts

by Arkansas Business Staff 
on Monday, Aug. 29, 2016 12:00 am  

Scott Reed’s 42,000-SF K Lofts project at 315 Main St., above, and the 3-building, 125,000-SF Main Street Lofts project at 510-524 Main St. have drawn lien claims for unpaid work by contractors. The historic redevelopments in downtown Little Rock also are many months behind schedule with unfinished construction remaining. (Karen E. Segrave)

Did you know the construction lender on Scott Reed’s comatose K Lofts project in downtown Little Rock recently launched a foreclosure action?

IberiaBank of Lafayette, Louisiana, sued to recover more than $1.4 million owed on an original June 2013 loan of $1.3 million to the ne’er-do-well developer.

Reed of Portland, Oregon, and Brian Corbell of Los Angeles both personally guaranteed the debt of their K Lofts LLC.

According to the bank’s complaint, the borrowers triggered a default by failing to maintain the debt-service ratio, failing to timely complete construction, ceasing construction and more.

The renovated 115-year-old building at 315 Main St. in downtown Little Rock stands mostly vacant, with apartments in a mostly complete state of limbo.

The contractor on the project, Little Rock’s AMR Construction LLC, pulled off the job after April Fools’ Day 2015. The company has a lien claim of $196,440 divided between two contracts.

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More than $143,700 is owed on the original $2.1 million contract to redevelop the upper floors of the once-dilapidated five-story building into 32 apartments.

More than $52,600 is owed on an $825,300 contract to repair a partial collapse of the east wall in 2013.

You may recall that AMR filed its own foreclosure suit earlier this year to keep its lien claim in force on K Lofts. At last report, this dispute is headed toward contractually mandated arbitration.

A few weeks shy of the sixth anniversary of trumpeting his K Loft plans, Reed has yet to deliver any completed projects among several failed attempts in Little Rock.

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Article source: http://www.arkansasbusiness.com/article/112748/scott-reed-faces-new-foreclosure-over-k-lofts

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