7777 State Rd. consists of two parcels, one 58 acres (7777-R) and one consisting of 13 acres, which is controlled by another bank. The site was the home of the old Northern Shipping terminal and has been vacant for at least the last 20 years.
There was a proposal in the early part of the 2000s to turn the properties into a residential development called Independence Pointe. Due to the economic downturn and counter-suits filed by the partners against each other, the property ended up in default for $31.6 million.
BNP Paribas lent $31.6 million to Churchill Residential Development L.P. for development of the property at 7777-R State Road. Churchill defaults, probably sometime around 2012. BNP owns the 58 acre parcel; the 13 acre parcel is controlled by another bank.
- BNP goes to District Court and receives a judgment in the amount of $31.6 million by order of the US Marshal.
- BNP has the property put up for Sheriff’s sale in order to reclaim the property.
- BNP bids $100 for the property as a minimal bid as logically, nobody will have the means to outbid them should someone show interest in the property.
- No other entity bids on the property as there really is no point as BNP will outbid them (e.g. Company X bids $1 million; BNP then counter-bids “1 million + $1”)
- BNP reclaims the property and assigns the bid to 7777 Philadelphia PA Loan Associates LLC.
- The transfer tax on the transaction is paid based on the Fair Market Value of $7.3 million.
- $7.3 million is the amount the City is proposing to pay to 7777 Philadelphia PA Loan Associates LLC.