Developer Turns Over Land, Money to Federal Agency
COLORADO SPRINGS, Colo. (AP) _ In an effort to satisfy $68 million in defaulted loans, developer John Olive has handed over property and an undisclosed amount of money to the Resolution Trust Corp.
Olive, 47, on Monday turned over three developments totaling more than 1,800 acres, an office complex and a shopping center in the largest settlement between the S&L bailout agency and a local developer.
Olive said he also gave the RTC a ″financial consideration″ as part of the deal but declined to disclose the amount or whether it was cash or a promissory note.
The RTC is getting two of Colorado Springs’ top business parks, Northgate and the Colorado Springs Technological Center, said Les Gruen, vice president of research for Palmer McAllister Co. Inc., a local commercial real estate brokerage firm.
But he added the agency will recover only a fraction of what it was owed because commercial land is selling for depressed prices.
Olive said he still is trying to negotiate new terms or settlements on loans totaling $21.5 million from six other lenders on three shopping centers, two restaurants, an office building and vacant land. He still owns Olive Real Estate Group Inc., a commercial real estate brokerage, property management and development services company with 20 employees.
Olive began dismantling his $140 million real estate empire early last year, when he turned over the 109,000-square-foot Citadel Terrace office building to Denver-based Columbia Savings to avoid foreclosure of a $10 million loan.
A year ago, Olive turned over the 106,000-square-foot Tech Center VI building to New York-based Citicorp Real Estate Inc. to satisfy a $10.5 million loan on the project. And earlier this year, Hartford, Conn.-based Travelers Life Insurance Co. foreclosed a $5.4 million loan on the 55,000- square-foot Tech Center IV building.