An entity that owns two office buildings and land near the RBC Center in West Raleigh has filed for Chapter 11 Bankruptcy.
Lichtin/Wade LLC, which is owned by Raleigh-based Lichtin Corp., owes BB&T Bank nearly $39 million, according to its bankruptcy filing. It also owes Wake County $290,870 in property taxes.
Lichtin owns two 100,000-square foot buildings, known as the Offices at Wade, that were built in 2008. It also owns adjacent land where three more buildings could be built.
Lichtin Corp. referred all questions about the filing to its attorney. In a release, the company said it filed for bankruptcy after being unable to renew and extend its loans on the property.
“Lichtin/Wade filed this case in order to protect the property and its equity and to ensure stability and continuity of service for its tenants,” the statement said. Lichtin/Wade hopes to work through its issues with BB&T during the bankruptcy case as quickly as possible.”
The company said the two office buildings are currently 90 percent leased.
Many developers who built projects around the time that Offices as Wade were constructed have had trouble refinancing their debt.
As property values have dropped, many owners have been forced to put in more equity to refinance their debt. Some have brought in additional partners to provide an infusion of capital.