VEGAS INC coverage
The Las Vegas-area commercial real estate market remains troubled, and that was illustrated Wednesday when four related companies filed for Chapter 11 bankruptcy reorganization.
The companies filing were:
• Horizon Village Square LLC, owner of the Vons-anchored Horizon Village Square Shopping Center near I-515 and Horizon Drive in Henderson. The property includes five retail buildings with nearly 43,000 square feet of space.
• Ten Saints LLC, owner of the 134-room Hampton Inn & Suites at St. Rose Parkway and Seven Hills Drive in Henderson.
• Beltway One Development Group LLC, owner of the Desert Canyon Business Park at Russell Road and the Las Vegas Beltway. It has two buildings and 15 acres.
• Nigro HQ LLC, owner of an office building at 9115 W. Russell Road occupied by Bank of George, Infinity Plus LLC and Nigro Construction Inc.
These businesses are owned or managed by local business people and firms including Todd Nigro, Nigro Development LLC, a Nigro family trust and other investors.
A fifth related business, Russell Boulder LLC, filed for bankruptcy in October. It owns the 600-suite Siena Suites extended stay property at Boulder Highway and Russell Road.
In court declarations, Todd Nigro said the four bankruptcies Wednesday were caused by threatened foreclosures — typically related to Wells Fargo Bank demanding payments to keep loan-to-value ratios at specified levels.
For instance, in the Horizon Village Square case, Nigro said the company was current on its payments but Wells Fargo demanded a $1.64 million payment to reduce the loan balance to $9.36 million to keep the ratio at less than 80 percent.
“Debtor was not able to satisfy the demand,” the court declaration said.
“Despite months of negotiations and (the Horizon Village Square) debtor’s ability to service its monthly debt obligations, Wells refused to reach a consensual resolution with debtor unless a consensual resolution was also reached with regard to separate loan obligations with Wells to which debtor was not a party,” the declaration said.
Wednesday’s bankruptcy filings listed assets and liabilities that were unspecified but ranged from $1 million to $10 million each for Nigro HQ; and more than $10 million apiece in both assets and liabilities for Horizon Village, Ten Saints and Beltway One.