posted on December 29, 2010 06:29
By Danielle Ameden/Daily News staff
MetroWest Daily News
FRAMINGHAM — At auction yesterday, a Boston bank outbid investors and landed the deed to downtown's Arcade block, signaling the end of a bankrupt developer's ambitious plans for the spot.
As mortgage-holder, First Trade Union Bank called for the sale after finalizing foreclosure proceedings against Framingham Acquisition LLC.
The Planning Board in 2004 approved the developer's plans for a $60 million mixed-use project that never materialized.
Real estate auctioneer Daniel McLaughlin ran a quick sale inside the arcade entry of 101-117 and 121-179 Concord St.
Three private investors refused to top the $2.5 million starting bid made by consultant Bob Bender on the bank's behalf. One, Nick Fiorillo, of Shrewsbury, suggested he would have bid up to $2 million.
Bender refused to comment afterward on the block's future.
Across the street in the Memorial Building, though, Alison Steinfeld, the town's director of community and economic development, said her office will continue working to see the block receive a makeover.
"It's a question of what the bank wants to do with the property," she said.
The town says it is owed more than $642,000 in unpaid property taxes and other utilities dating to fiscal 2008, and has placed liens on the property.
Before developer Michael Perry filed for Chapter 11 bankruptcy protection last year, he planned for demolition and new construction of 290 apartments, 40 hotel rooms, 50,000 square feet of commercial and office space, a rooftop garden, swimming pool and other amenities.
"That would have been very good for Framingham. Downtown Framingham is dead as it is," said John Araujo, who, with his wife, runs a clothing store at 113 Concord St. "I think it's going to be 10 years, status quo."
The block is home to a CVS, several other businesses and some vacant storefronts.
Araujo qualified to bid in the auction, but hoped only to buy the office condo he and his wife now lease.
Another planned piece of the Arcade project was sold off in September.
As in the case of yesterday's auction, mortgage-holder Framingham Co-operative Bank, outbid investors interested in six nearby parcels.
That bank lent Framingham Acquisition $1.8 million in 2004 to buy five triple-deckers on Frederick Street and a lot on Kendall Street.
The developer razed the multifamily home on the lot and had planned to tear down the five other homes to build a six-story parking garage.
(Danielle Ameden can be reached at 508-626-4416 or email@example.com.)
Read more: Bank pays $2.5M for Framingham Arcade - Framingham, MA - The MetroWest Daily News http://www.metrowestdailynews.com/archive/x1148223506/Bank-pays-2-5M-for-Framingham-Arcade#ixzz1FFe9ls40