MEMPHIS, Tenn. – Telesis Community CU, which has encountered problems on its nationwide member business loan portfolio, filed foreclosure papers this week on a mixed-use office building in the city’s South Main Historic Arts District, its second try to seize the financially troubled property.
The company, Memphis Center City Revenue Finance Corp, defaulted on a $3 million loan dated Dec. 7, 2007, from the Chatsworth, Calif., credit union, one of the most active MBL lenders in the country. The 50,820-square-foot building, constructed in 1900 and renovated in 2001, is home to Contemporary Media Inc., parent of such publications as the Memphis Flyer and Memphis Magazine.
This is the second foreclosure notice filed against the property owner. Telesis foreclosed on 460 Tennessee Street LLC in July 2009, but Williams filed for Chapter 7 bankruptcy protection the following month
The property is set for sale at 1 p.m. Dec. 27.
The $425 million credit union has been forced into growing foreclosures on its MBL portfolio as the national economy continues to falter, with recent actions against a troubled shopping mall at Florida’s Universal Studios, two historic properties in downtown Portland, Oregon; and a Holiday Inn in Statesville, N.C.
