posted on January 15, 2019 05:21
WEYMOUTH — A firm that lent $60 million to the struggling developer behind a sprawling project on the site of the former South Weymouth Naval Air Station has started the foreclosure process for several dozen parcels of land as the development faces growing legal and financial challenges.
Washington Capital Management has scheduled a public auction next month at the development, called Union Point, for the purpose of foreclosing on 40 lots ranging in size from less than a quarter-acre to nearly 30 acres. In a legal notice announcing the auction, Washington Capital Management said the developer, LStar, had breached the terms of its mortgage agreement with the lender.
Bruce Barnett, an attorney for Washington Capital, did not return an email seeking comment Monday.
The foreclosure auction comes amid mounting legal and financial problems facing the massive mixed-use redevelopment project, which includes 1,450 acres of land in Weymouth, Rockland and Abington.
In August, a Suffolk Superior Court judge banned LStar and its chief executive officer, Kyle Corkum, from selling off any assets worth more than $25,000 as they face a lawsuit filed by a company that loaned LStar $2.5 million.