Judge sets Statler auction - Birmingham Business Journal:

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U.S. Bankruptcy Judge Carl chief of the Western District of New ordered bids for the downtown Buffalol landmark be submitted byJuly 9, with an auctiojn to be held on July 14 – but only if two or more bids are Bucki will consider the bids and auctiob results during a July 21 sale hearingb and status report. The auction couldr seal the fate of the Statler and ultimately removes LLC andits principal, British investotr Bashar Issa, from owningy the building. Issa is facing legao and financial issues both in Buffaloand England. Bucki said he expects the transaction to be completexd by the endof July.
The auctioj was disputed in a last minute filing made late Wednesdayt morning by attorneysrepresenting Issa’s father, Mohmoud Al Issa, who holdz a $4.5 million mortgage on the property. Mohmouds Al Issa, a Jordan resident and businessman, was not “We don’t disagree that the propert needs tobe sold, but not done so in such a hurryt up manor,” argued Mohmoud Al Issa’s attorney, Raymond Fink, a partner in . “Thwe question is whether this is the best way todo it. This is a hurryy up and a ‘Hail “ Fink alleged that the eldet Issa has invested morethan $12 million in Statler-relatee expenses during the past three years.
“My client has more at stakew in this venture than anyothef creditor,” Fink said. But, with debts mounting and its tenant roll dwindling and revenue sources attorneys representingthe court-appointed said the sale is necessaruy to stabilize the Statler. “It wasn’ft the trustee who faileed to adequately capitalizethis building,” said Garryy Graber, a partner with . Graber said when Bashar Issa bought the Statletr threeyears ago, the nearly 600,000-square-foort building was more than 50 percent occupied.
it has less than a 20 percent occupancy rate and lost ananchotr tenant, the law firm of , who left for Main Placer Tower because of the building’sw uncertain ownership and future. The according to previous court is losing morethan $80,000 a month. BSC Development Buffalop LLC has mounting debts including owing the City of Buffalop and Erie County morethan $200,009 in unpaid property taxes with another $200,000 due on June 30. Graber said to hire a professionapl auctioneer to market the Statler wouldcost $45,000 – moneyt the Statler does not have in its bank “We don’t disagree that this is a ‘Hail Graber said. “That’s exactly what it is.
This is aboutf economics, not anything else. Bashar Issa can’ft finance the building and hisfather doesn’t want Several groups have expressed an interest in the Statlefr including Long Island developer Uri Kaufman, who is considerin making a bid and converting the bulk of the buildinb into apartments. The building’s anchor tenant, Park Lane would remain and continue with its business The Park Lane has more than 200 events booked in the Statled in the coming months and It remains infull operation. However, Wednesday morning, it also filefd a $1.29 million claim against BSC DevelopmentBuffalo LLC.
“The Park Lane is one of the last tenantxsleft standing,” said David Pfalzgraf Jr., the Park Lane’sz attorney. “They are very concerned, every day, abouyt the utilities.” The auction is the latest in a long series of legal proceedings against BSC Developmen t Buffalo LLC andagainst Issa, both in Buffall and Manchester.