Horbach Gets Two-Week Reprieve on Foreclosure

BELLEVUE, WA-Property along Northeast Eighth Street between 108th Avenue Northeast and 106th Avenue Northeast remians Eugene Horbach’s this week, as lender Olympic Coast Investment extended the foreclosure deadline by two weeks, keeping alive his plans for up to 2 million sf of office, hotel, multifamily and retail space.

If Horbach does not make good on missed payments and late fees owed to Olympic Coast Investment, the land will be auctioned to the highest bidder. Both sides, however, would rather see straight sale, however, as it would likely provide a better return on the investment.

John Hoss, Olympic’s exectuive vice president, spoke with GlobeSt.com Friday morning and confirmed the reprieve. Hoss described the decision as Olympic “exercising an abundance of caution.” Hoss said Olympic’s loan servicing portfolio totals $100 million and Horbach holds the largest percentage of any one borrower. According to the company’s Web site, its loans are made at 13% interest.

In June, investment advisor Washington Capital Management Inc., which had loaned $22 million to Horbach’s Bellevue Technology Tower, but the property during a foreclosure sale.

The $108 million, 20-story office building was to rise on the corner of Northeast Fourth Street and 108th Avenue Northeast. But work stopped shortly after the underground parking garage was complete. Horbach fought with the project’s former general contractor and defaulted on the loan. Horbach reportedly owed more than $27 million, including interest and penalties.

At one point, the 377,000-sf project was 60% leased. It is not yet known what Washington Capital intends to do with the project.