The California-based owners of Franklin Park Medical Center, at 220 E. Rowan, have defaulted on a loan on the three-story medical office building, which is scheduled for a trustee’s sale on Friday, July 15, at the Spokane County Courthouse.
A notice of trustee’s sale says the owners—Franklin Park LLC, of Alamo, Calif., and Mary Ann Wilburn, of Livermore, Calif.—have defaulted on a loan with outstanding principal of $3.3 million, plus interest.
The loan, which is secured by a deed of trust on the property, was due in full last Sept. 15, the notice says.
Spokane architect and county commissioner Al French and development partner Rob Daugherty, together with minority investors, developed the 30,600-square-foot building in 2005 at the southwest corner of Rowan Avenue and Lidgerwood Street, south of Providence Holy Family Hospital.
“We sold the medical office building in 2009 to a California syndicate that has found themselves in hard times,” French says.
Spokane County Assessor’s Office records show the property sold then for $7 million. The assessor’s office has appraised the taxable value of the property at $4.4 million for the 2017 tax year, down from a year-earlier taxable value of $6.3 million.
Tenants occupying the Franklin Park building include Pathology Associates Medical Laboratories LLC, The Doctor’s Clinic of Spokane PS, and Spokane Orthopedics PLLC.
Prior to the Great Recession, French, part owner of a separate development concern, Franklin Park Medical Center II LLC, had announced plans to develop a $20 million, 10-story mixed-use Parc two20 Tower building on vacant land on the west side of the Rowan Medical Center building.
A third envisioned structure had been planned on the south side of Franklin Park Medical Center as a 50,000-square-foot medical office building.
French says new development plans are in the works for the properties south and west of the Franklin Park Medical Center.
“We still own a significant part of the rest of the block,” French says. “We’re looking at a project significantly different than the tower,” he says. “The concept has changed dramatically because of the Recession and Obamacare, which has changed the medical-office market.”
The notice of trustee’s sale was last published July 1, and as of earlier this week was scheduled to proceed at 10 a.m. Friday, according to the trustee, Seattle-based Trustee & Corporate Services Inc.
French says, “We’re aware of the action, and we’ll see how it plays out the rest of the week.”
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