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The owner of the Arcade Building in downtown Riverside has rejected all of the bids it had received for the property and will move to sell it on the open market.
Joe DeGroot, an asset manager for PrinsBank in Prinsburg, Minn., said Friday that he received 12 bids for the vacant local landmark, but that all of them fell short of expectations.
“We’ve returned all of the [bid deposits] to the bidders and we’ll move ahead with a Realtor,” DeGroot said. “By the end of next week it should be on the market.”
DeGroot declined to name the real estate firm that will have the listing, since the bank does not have a signed agreement with the firm yet. He did say it was a suburban Chicago real estate office.
He said that there would be a published listing price for the Arcade Building once the real estate firm finishes its evaluation of the property.
PrinsBank is servicing the mortgage on the Arcade Building, which is owned by a company called Cap Financial CVs LLC. Cap Financial purchased the $2.9 million mortgage on the building in July 2008 from Amcore Bank.
Built in the 1870s by the Riverside Improvement Company, the Arcade Building’s troubles began when it was purchased by Wexford Development Group in December 2004 for $3.1 million.
Plans to attach a nine-unit condominium addition fizzled in late 2006, and the renovation that was occurring came to a halt last fall when the building became part of a federal securities fraud lawsuit involving two officials of Wexford’s parent company, Wextrust Capital.
On Feb. 20, a federal judge in New York approved a request by the receiver of Wextrust’s assets to return the mortgage for the Arcade Building to Cap Financial in lieu of foreclosure.