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PORTLAND-Confirming an earlier GlobeSt.com report, title records show that for $17.8 million Lehman Brothers has taken possession of Pearl Technology Center, a failed 320,000-sf telco hotel conversion in Northwest Portland for which it was the lender.

Lehman was the lender on the acquisition, but the market never materialized and in August 2001 GlobeSt.com reported that sources in a position to know about the project said FowlerFlanagan hadn’t been making loan payments and was trying to refinance or find additional backing to stay out of bankruptcy. Last week, sources told GlobeSt.com that DPR Construction had a $3.5-million lien against the property and that Lehman Bros., the lender on the project, was now in control of the building and has several heads together exploring options for the property.

The title information, provided by Real Capital Analytics of New York City, confirms the ownership but does not answer the question of whether DPR has been taken care of. A DPR spokesman could not be reached for comment this week, but last week declined to confirm or deny the lien. Bill Ahearn of Lehman Brothers continues to eschew GlobeSt.com requests for information about the company’s involvement in the property, the address for which is 1415 NW Hoyt St.

FowlerFlanagan Tech Partners was launched in 1999 by Fowler Shore Flanagan, one of the top 50 owners of real estate in the world. Sources who know Greg Fowler say Fowler got into the telco hotel business after some of his wealthy investors who had already made other successful investments in the niche in first-tier cities like Dallas asked Fowler to take their money and, using the company’s nationwide network of acquisition people, invest it in telecom hotels in top second-tier markets, which hadn’t yet been penetrated.

“It’s going to take a creative lender that has patience and flexibility to take it in chunks,” says one source. “Lehman almost needs to discount the notes to zero, start a partnership with the right group and basically give them the property and gamble for a piece of the upside on the back end.”

Players Mum About 320,000-SF Pearl Tech Center

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