Troubles continue to mount for Phoenix-based Opus West Corp. The onetime CRE behemoth announced that it has engaged legal counsel to “explore restructuring options.” Given its success and stature, Opus West is widely regarded as a leader in the local commercial real estate industry and, if they are having trouble, it is widely believed that this is a good indication that we are all in for a ride and more turmoil ahead.
This is just the latest in other troubling news about the one time giant. There is currently a foreclosure auction scheduled for Aug. 13 by Bank of the West in connection with a $30.9 Million construction loan for phase 1 of the Glendale Corporate Center and Opus West’s other troubles include a lawsuit filed in April by ten banks (led by Bank of America) alleging that Opus West owes them $160 Million, a pending bankruptcy and foreclosure of an Austin shopping mall financed with those loans, and the bankruptcy of a related company, Opus South, in Atlanta. There has also recently been a change up in their leadership when Tom Roberts, Opus West’s CEO/President for the last 20 years, stepped down in May and was replaced by former EVP, John Greer.
Those of us focused in on the CRE market are anxiously awaiting news about the future of Opus West as it will not doubt impact us all and may provide an indication as to our own futures.