Lender buys High Point's Hamilton Square for $2.6 million

Larry Thomas -- Furniture Today -- Casual Living, 2/19/2013 9:42:48 AM

HIGH POINT - A U.S. Bankruptcy Court judge in Greensboro, N.C., has approved the sale of High Point's Hamilton Square showroom building for $2.6 million to the Florida-based bank that is the property's largest secured creditor.

Judge Thomas Waldrep Jr. approved the sale of the 113,000-sq.-ft. building after Capital Bank Financial increased what had been a high bid of $1.4 million bid at a foreclosure auction. Two other entities were bidding on the property.

During a hearing after the auction to confirm the sale, Capital Bank attorney Ashley Rusher told Waldrep that the bank was raising its bid to $2.6 million.

In bankruptcy parlance, the bank's bid is considered a "credit bid" because the value of its claim is used as collateral and it doesn't have to make the purchase in cash.

Capital Bank inherited a $5.4 million note on the property with its October acquisition of Greensboro-based Southern Community Bank, the original note holder.

Hamilton Square's owner, a company controlled by High Point businessman Wayne McDonald, filed for chapter 7 bankruptcy in July.