Parties involved in pending foreclosure case against the owners of 925 Euclid Ave. in Downtown Cleveland could decide Monday if an affiliate of Millennia Companies will get more time to retain and redevelop the 1.45-million-square-foot building (NEOtrans). CLICK IMAGES TO ENLARGE THEM.
Judge to decide 925 Euclid’s fate Monday
A federal court will likely decide on Monday whether to give the owner of the huge, former Union Trust Bank Building, 925 Euclid Ave. in Downtown Cleveland, more time to resolve a foreclosure action against it. Or the court could instruct the owner, an affiliate of the Millennia Companies, to get in line with other potential bidders to get the property in November.
In fact, U.S. District Court – Northern District of Ohio Eastern Division Judge Charles Fleming today already gave Cleveland-based Millennia’s affiliate, HH Cleveland Huntington, L.P., one extra day so he could make his decision on Monday.
On June 30, Fleming set the schedule for a court-monitored sale of the 1.45-million-square-foot 925 Euclid. The deadline for qualified bids for the 102-year-old building is Oct. 24. Bidders will be notified Oct. 28 if an auction will be held. An auction, if necessary, will be Nov. 3. Deadline for objections to a sale to be submitted to the court is Nov. 10.
Initially, Millennia had until July 30 to exercise its right to redeem its equity against a foreclosed debt of $40.1 million by paying off the debt in its entirety to avoid entering the process of a court-monitored auction. A month ago, the real estate firm then asked for and won from Fleming an extended deadline to Aug. 30.
Adam Brown, a partner at Zukerman, Lear, Murray & Brown, Co. LPA and an attorney for Millennia, told the judge today the company continues to progress toward arranging financing to resolve its debts associated with 925 Euclid, also called The Centennial. But it needs more time to close on that financing. It is now seeking a Sept. 30 deadline.
With its massive bank lobby, once touted as the world’s largest, the former Union Trust Bank Building is a difficult but attractive property for redevelopment (CPL).
Court records suggest Millennia is working with third parties to not only finalize the financing necessary to redeem the property, but that these third parties are apparently preparing to “make deposits in amounts that are multiples of the outstanding debt owed to Deutsche Bank AG, New York Branch.”
That outstanding debt owed Deutsche Bank totals about $33.4 million. That’s in addition to $6.7 million owed to Cuyahoga County for a redevelopment loan and unpaid property taxes.
Sources told NEOtrans recently that Millennia is seeking to close on financing to undertake a nearly $500 million redevelopment of the property per city-approved plans into The Centennial. Those plans would turn the 1924-built, 21-story office building into roughly 864–870 workforce and market-rate apartments, a boutique hotel, retail and commercial spaces, fine dining establishments and event spaces.
But plaintiff Deutsche Bank which initiated the foreclosure action late last year, said in a court filing today that it is growing tired of the postponements. Its attorney, Matthew Vansuch of Roetzel & Andress LPA, said his client wants to moved forward with a sale by auction. Deutsche Bank encouraged Millennia to submit a bid at the auction.
“The time has come for The Centennial building to be sold, and without any further delay,” Vansuch said. “The loan matured in March 2023 (after two amendments extending the payoff date), and Deutsche Bank and Defendants entered into five forbearance agreements that further extended
the time for them to payoff this loan.”
Someday, the former Union Trust Bank Building, later the Huntington Building, could arrive at the next chapter in its life through redevelopment (Millennia).
He added that, once Deutsche Bank filed the underlying complaint, initially in state court 11 months ago, Millennia’s founder Frank Sinito and its affiliate HH Cleveland Huntington “exercised every opportunity to extend deadlines, starting with their removal to this court the day before the state-court hearing on Deutsche Bank’s motion to appoint a receiver.”
“Mr. Sinito’s counsel has represented to this court — without providing any supporting documentation from any third party — that Mr. Sinito and HH Cleveland Huntington, L.P. are now working with third parties ‘to finalize the financing necessary to redeem the property’.”
But Brown, Millennia’s attorney, said in his motion filed with the court said two legal counsels for creditor Cuyahoga County, Mark Musson and Adam Jutte, do not object to Millennia’s motion for extending the deadline another month. Neither man was available for comment late-Friday.
The same cannot be said for the court’s appointed receiver of 925 Euclid, John Lane, CEO and managing director of Mentor-based Inglewood Associates. Through his attorney Christopher Peer, CFO of Wickens Herzer Panza, Lane argued in a filing with the court that, while he is not opposed to Millennia redeeming its equity in the property, its delays to the court-ordered disposition is harming its deadlines-based process.
“Included within the relevant deadlines is the September 15, 2026 deadline for the receiver to identify a Stalking Horse Bidder (SHB),” Peer said. “Through receiver’s marketing process, receiver has learned, including feedback received through the receiver’s retained real estate advisor Gordon Brothers, potential bidders have expressed some levels of reluctance in participating as the SHB.”
“Uncertainty remains regarding whether defendant will exercise a right of equity redemption,” Peer continued. “Simply stated, prospective bidders do not want to incur the expense and effort of preparing to participate in a potential sale, including potentially serving as the SHB, while the property remains subject to an uncertain redemption by defendants.”
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