The real estate trust that loaned $175 million for The Railyards has filed a notice of trustee sale, bringing the high-profile project a step closer to foreclosure. Developer Thomas Enterprises of Atlanta has defaulted on the hefty loan, and the trustee sale has been set for Oct. 22. Now, Inland American Real Estate Trust and Thomas Enterprises officials can continue to negotiate a settlement during the next few weeks.
The Railyards, the largest downtown infill project in the nation, has been battling a bad economy and the financial problems of its owner, Stan Thomas, who has used some of the $175 million for other projects. The Railyards is expected to convert a more than century-old Union Pacific railyard into a model mixed-use project, with offices, shopping areas and homes. But its latest financial problem will delay - and possibly kill - the project.