Horbach Unloads Properties, Beats Deadline

BELLEVUE, WA-Developer Eugene Horbach has made good on missed payments and late fees owed to lenders by selling the bulk of his Superblock to a Utah-based company. The value of the transaction was not disclosed, although his debts reportedly reached nearly $30 million.

The sale of the properties along Northeast Eighth Street between 108th Avenue Northeast and 106th Avenue Northeast to BV Holdings LLC has allowed Horbach to beat today’s foreclosure deadline. Olympic Coast Investment Co. had extended the deadline by two weeks.

In June, Washington Capital Management Inc., which had loaned $22 million to Horbach’s Bellevue Technology Tower, bought it.

The investment adviser purchased the property at auction in 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.

As for the properties Horbach unloaded this week, BV Holdings reportedly will meet with city planners in the future to discuss its development options.