Gerding Edlen Development of Portland, Ore., has handed over the keys to its $500 million Seattle condo project, Bellevue Towers, to lenders headed by Morgan Stanley Mortgage Capital.
Morgan's exposure on the project is about $275 million, according to media reports out of the Pacific Northwest. Morgan's spokesman had not returned a telephone call about the matter as National Mortgage News went to press.
It's unclear which other lenders have exposure on the project. The firm handed over control of Bellevue Towers to avoid filing for bankruptcy protection.
Launched in 2006 before real estate markets began to crater nationwide, the two-tower project boasted 539 units. To date, just 139 units have sold. Bellevue Towers is considered one of the largest condo projects in the Northwest.
Prices on the condos have been slashed by at least 30% from their peak.
In 2007 Gerding Edlen, which has developed projects up and down the West coast, received the top slot in the Portland Business Journal's list of most admired real estate companies.
