The entity that owns the lower floors of the 510 Glenwood building has filed for bankruptcy reorganization in an attempt to halt foreclosure proceedings on the space.
The entity, Burcam Capital II LLC, cited total liabilities of $10 million to $50 million in the Chapter 11 petition that it filed Thursday. Its primary loan balance is about $11.5 million, according to the mortgage analysis firm Trepp.
Burcam’s petition reported total assets in the same range. Debtors are required to file more detailed financial information within a few weeks of their initial petitions.
The bankruptcy filing comes after Burcam’s loan servicer started the foreclosure process about a month ago. The company stopped making payments on at least one loan in August.
Manager and co-owner Neal Coker described the bankruptcy as a necessary step to halt foreclosure. Burcam owns the 67,000 square feet that house 510’s offices, shops and restaurants such as Draft and, formerly, Cantina South.
The foreclosure and bankruptcy don’t affect the residential condominiums on the upper floors, and Coker said Friday that commercial tenants will not see any changes. The occupancy rate for the office space fell as low as 65 percent last year after the securities broker Morgan Keegan vacated its large office there, but has since rebounded into the high 90s. But that required spending tens of thousands of dollars in real estate commissions and remodeling for new tenants, Coker said.
A Hampton Inn expected to open in Glenwood South will bolster the restaurants and Burcam’s own revenue from the parking deck, he said.
Coker built 510 in 2000 with funds from Warner Bros. Entertainment COO Alan Horn and several other investors. Along with the redeveloped Creamery building nearby, it has been credited with creating Glenwood South as a lively entertainment district.