Ellman Loses Ownership of MXU Westgate City Center

GLENDALE, AZ-The multimillion-dollar complex is repossessed by lender iStar after failing to sell at a foreclosure auction.

By Amy Wolff Sorter | Updated on September 20, 2011

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.

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