Government

Sheriff's sale for downtown Cedar Rapids Wellmark building postponed

This the second postponement for Wellmark office

Deutsche Bank Trust Co. Americas filed a lawsuit in 2017 to begin foreclosure proceedings on 600 Third Ave. SE (above) and 215 Third Ave. SE. (Liz Martin/The Gazette)
Deutsche Bank Trust Co. Americas filed a lawsuit in 2017 to begin foreclosure proceedings on 600 Third Ave. SE (above) and 215 Third Ave. SE. (Liz Martin/The Gazette)

CEDAR RAPIDS — A public auction has been postponed a second time for a high profile 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 debt that has grown to more than $30 million, according to court filings.

A sheriff’s sale for the building at 600 Third Ave. SE had been scheduled for last Thursday. But an emergency order postponed the sale, which has been rescheduled for 10 a.m. on Sept. 12.

The case is set to go to trial on Sept. 16, barring a settlement.

District Court Judge Fae Hoover Grinde noted the stay should not have been granted but the court needed time to properly review a last-minute motion. The plaintiff, who resisted the stay, had postponed an initial date for the sheriff’s sale in July.

Two Kentucky-based companies are responsible for the debt, which has interest accruing at $6,867 per day, and hold 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.

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

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