Commercial Real Estate

Turns Out, The Drever Has Been Posted for Foreclosure

Though Drever Capital Management maintains that the project at 1401 Elm is “on track in closing new financing.”

After news broke on Monday that Drever Capital Management was in default for a $55 million loan to renovate the 1401 Elm building downtown, it turns out, the building has been posted for foreclosure.

Public filings show that the 52-story former First National Bank tower will be sold at auction on Dec. 5, following default of its loan from GCP Income Opportunities in April. This foreclosure record was filed Monday, the same day as a public record stating that the loan’s original trustee had been replaced with a substitute, an administrative step often indicating foreclosure is on the horizon. D CEO obtained the notice of foreclosure document on Friday.

From the notice of substitute trustee’s sale record: “Notice is hereby given that on Tuesday, December 5, 2017 … the substitute trustees will commence the sale of the property, in parcels or as a whole, at public auction to the highest bidder …”

Though Drever Capital Management statement on Monday did not directly address the foreclosure, a Drever spokesperson reiterated that same statement on Friday in regards to the foreclosure.

“We remain in ongoing discussions with the lender. While we are on track in closing new financing, construction continues and we are looking forward to completing construction on schedule in 2019,” the statement said.