Business

Public auction postponed for foreclosed Cedar Rapids office building

A public auction has been postponed for an office building at Third Avenue and Sixth Street SE, Cedar Rapids.  (Rebecca F. Miller/The Gazette)
A public auction has been postponed for an office building at Third Avenue and Sixth Street SE, Cedar Rapids. (Rebecca F. Miller/The Gazette)

CEDAR RAPIDS — A public auction has been postponed for a downtown office building occupied by Wellmark Blue Cross and Blue Shield, Clifton Larson Allen and Morgan Stanley as part of a foreclosure to help settle a $26 million debt.

A sheriff’s sale for the building at 600 Third Ave. SE had been scheduled for Tuesday morning, but a request to postpone was submitted on July 23 by the plaintiff or its attorney, according to Capt. Randy Rowland, of the Linn County Sheriff’s Office. It is not clear why the request was made as disclosure is not required, he said.

The sale has been rescheduled for Aug. 29.

Rowland noted the sale can be postponed only twice for a total of 60 days, after which the sale either would need to proceed or be canceled. If it were canceled, another execution could be issued and a new sale date set, he said.

Two Kentucky-based companies are responsible for the debt and hold the deeds on that property and on the Town Centre building a few blocks away.

Deutsche Bank Trust Co. Americas filed a lawsuit in 2017 to begin foreclosure proceedings on the two buildings, claiming Second Succession LLC, which holds the deed for Town Centre, 215 Third Ave. SE, and Second Progression LLC, which holds the deed for the Wellmark building, had defaulted on the loans. Deutsche Bank is the trustee for those loans.

Roscoe-Danial Holdings owns 75 percent of Second Progression. SLE Investments, owned by Cedar Rapids developer Steve Emerson, owns 25 percent, according to court records.

Roscoe-Danial Holdings owns 70 percent of Second Succession, while Emerson’s company owns 30 percent, according to court records.

l Comments: (319) 398-8310; brian.morelli@thegazette.com

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