The Arkansas Development Finance Authority has foreclosed on its mortgage loan to the Kramer School Artlofts Ltd. Partnership, owner of the Kramer Lofts at 715 Sherman St., and the lofts will auctioned at 3 p.m. Monday at the Pulaski County Courthouse. The sale will be for cash only.
ADFA loaned $452,164 to the Downtown Little Rock CDC’s Redevelopment Corp. when the Kramer Lofts, developed by the Vanadis Group, faced foreclosure in 2011. The Vanadis Group was unable to meet its obligations of the same amount owed ADFA and $200,000 to Regions Bank. The loan was to be repaid at 1 percent interest.
I have a call in to ADFA to determine what is the debt on the mortgage is.
Vanadis intended the development to serve as low-income artist housing, but federal regulations did not allow leasing restricted to artists alone. Some residents — including artist Erin Lorenzen, who posted today about the foreclosure on Facebook — would like whoever buys the lofts to restore the arts emphasis.
UPDATE: ADFA will not reveal what is owed on the mortgage because the agency is in litigation, I’m told, and I can’t seem to squeeze out any information from the agency about where the litigation is filed.
UPDATE II: ADFA counsel Layne Anderson said the entire $452,164 is still owed the agency. She said the “litigation” she was referring to was the foreclosure notice. Beats me why that took 24 hours to get to.