GLENDALE, AZ-A little more than seven years after launching construction on the mixed-use Westgate City Center, developer Ellman Cos. has lost ownership of the complex.  The Arizona Republic reports that lender iStar Financial repossessed the development, located outside of University of Phoenix Stadium and Jobing.com Arena after it failed to sell at a foreclosure action for a $40 million reserve price.

Estimated development costs for the 33-acre project at Loop 101 and West Glendale Avenue were estimated at close to $150 million. GlobeSt.com reported in 2005 that Ellman was successful in obtaining financing ifor the project’s first phase. Howeer, the Republic says loans were difficult to obtain and construction was completed later than anticipated. Added to that, the Great Recession impacted Ellman’s ability to expand development and keep its current tenants.

As a result, Ellman was unable to pay the $97.5 million loan from iStar Financial, as well as approximately $202 million in debt from Credit Suisse that came due a couple of years ago. Lenders declared Ellman in default during summer 2011, and began foreclosure proceedings.

The Republic notes that remaining land owned by Ellman Cos. is 95 acres of parking slots that were slated for future development. Credit Suisse has scheduled the loan for auction in November 2011.