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Update: UTC Towers Sold Back to Lender

High rise complex, assessed at $65 million, to be sold on courthouse steps today.

Update - 2:30 p.m. - The Towers at University Town Center will likely be bought back by the mortgage lender, Delaware based ML-CFC Commercial Mortgage Trust 2007-8 LLC, following a quick auction outside of the Prince George's County Circuit Court in Upper Marlboro earlier this afternoon. 

The complex was purchased for $39.15 million, the opening bid. Though a small group of potential buyers had gathered for the auction, none placed any bids higher than the opener. 

Though ML-CFC owns the winning bid, the purchase still has to be finalized by the circuit court before it becomes official. 

Original article: 

If you're looking for a bargain on a high-rise housing complex, then today might be your lucky day. 

The massive, 244-unit, 910 bed will be put on the auction block later today, according to a report in the Washington Business Journal. 

The auction will take place at 1 p.m. today on the steps of the Prince George's County Circuit Court in Upper Marlboro. 

Last August saw the foreclosure of the mixed use development and the auction of the Metro One building, which was purchased by CWCapital for $16 million. Other parts, including the movie theater, retail space and condominiums, were acutioned to Wells Fargo for $25.1 million. 

The high rise student housing complex, owned by UTC Housing I LLC, has struggled since it was was built in 2006. The company has more than $53.1 million in outstanding debt on the property, worth itself about $65 million, according to the Washington Business Journal. 

In 2010 talks were in the works for more than 3,000 new jobs to come to UTC as the U.S. Department of Health and Human Services then was looking for a new home for a new satellite office.

ended up not choosing the Hyattsville location.

Most recently, (though it's still listed on the UTC website) after three and a half years in business.

"In short, we opened in 2008, two months before the recession hit," "Our bills were based on pre-recession high rent, big bank loan, and the mall has not seen its full potential…we tried to work through the tough times, but low sales, no money is a bad combination."

Compared to some other businesses, the Wild Onion had a marathon run. 

The town center has lost other occupants, some of which were lessees who backed out on their decision. One of those vendors was Wow! Cafe & Wingery, who never even opened doors at the location where Hank’s Tavern and Eats now operates.

Others didn’t come through and some who did—New Town Cleaners, Gifford’s Ice Cream & Candy,  The Original Soupman, and Smoothie King—closed up shop soon after opening. t has a location at UTC that initially was owned by Michael and Carol Cron, who ended up shutting down that location. It has since been re-opened under new management.

HyattsvilleCouldBeBetter May 15, 2012 at 02:43 PM
They could save this development by adding more apartments and maybe adding direct vehicular access to the parking lot from 410 and providing for free parking there. There is also a huge problem with racial segregation in this area so many potential customers from the east side of town and University/College Park tend to steer clear. The Hoffman center in Alexandria faced a similar issue but after building a plethora of luxury high rises near the development it became a thriving and diverse movie theater anchored development. Too bad the Landy development plans got butchered. I've been in the student highrise, and one of my concerns was that they put complete strangers together in a single unit, but then do not provide cleaning services for the common areas. Yuck. The development has great potential as long as the area continues to grow. Building a luxury highrise behind the development in the HUGE parking lot on Toledo Terrace would entice people to walk through UTC on their way home from the metro. As a local landlord, I know that there is a high demand to live in this neighborhood. Hopefully the new owners will figure out a way to capitalize on this. A single highrise cannot flourish alone, there needs to be a network of housing complexes. As far as the retail, I would like to see a liquor store, some novelty stores that sell gifts and art, a yoga studio, a pet store, a Subway, a Bakery etc, Think diversity.
Lori Fuller May 15, 2012 at 07:26 PM
Who's going to pay for that? The taxes are already outrageous and have been driven by the local government's decision to go in the the development business before addressing fundamentals first. The foreclosures and short sales are saturating the market and you want taxpayers to fund more development? Really? Incidentally, all the shopping you're looking for already exists all around you. You might have to actually leave the highrise to find it though.
HyattsvilleCouldBeBetter May 15, 2012 at 08:57 PM
The entire development is either bank owned or privately owned, so I don't think the tax payers have much to do with it at all. Can you explain why you think tax dollars are being used here?
Donald James May 15, 2012 at 08:59 PM
What taxpayer money has been funding this development? These are developments owned by private companies. If taxpayers were funding it, we'd own it instead of it going to auction back to the BANK who owns it. Developers are also usually required to make improvements to the areas that will be affected by their developments that they DO NOT own. The lack of funding for private development due to the recession is also the reason why this area never reached it's full potential. It was built at the wrong time.
HyattsvilleCouldBeBetter May 15, 2012 at 09:06 PM
And, I don't know where you think this development is, but there are no liquor stores or yoga studios, pet stores, or bakeries in PG plaza. I don't know if you've been paying attention to local news regarding development, but TOD is hot, and walkable communities are the future. Cafritz? Belcrest Development? Arts District? Landy Property? Any of that ring a bell?

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