Perkins Rowe in financial hot water

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By Emley Kerry

Perkins Rowe, the high-end multi-purpose building complex on Perkins Road and Bluebonnet Boulevard, was touted as being the new face of Baton Rouge business and the new look of a developing city. It is a destination for LSU students seeking a full day of shopping at retailers such as Urban Outfitters and Anthropologie, dinner at a wide variety of restaurants from savory Brazilian churrasco at Texas de Brazil to west coast slices at California Pizza Kitchen, and a movie at Cinemark Theatres. However, the development is now in foreclosure proceedings and its future remains tenuous.

Perkins Rowe, which opened in October of 2007 and has over 300,000 square feet or retail space, has been ostensibly successful in retail sales. Despite the success of the complex's retail tenants, the developer Tommy Spinosa is accused of defaulting on loan payments and, in addition, Spinosa has not paid interest on its loan since October of 2008, a total which now exceeds a staggering $165 million.

Negotiating with lenders to refinance the complex seems to be Spinosa's preference to keep Perkins Rowe afloat.

"We will continue to seek new financing and work with the lenders in the hopes of reaching a successful resolution," said Perkins Rowe spokesperson Jeff Wright in a prepared statement as reported by Baton Rouge Business Report.

If banks are unwilling to work with the developer, the foreclosure will go forward as planned, with Cleveland-based KeyBank acting on behalf of eight other banks filing a lawsuit in federal court, an assuredly slow and drawn-out process. KeyBank originally filed the suit in district court on July 29.

"It's an unfortunate situation," said F. Scott Kaiser, an attorney for KeyBank, as reported by the Advocate. "KeyBank's got some responsibilities to a lot of lenders to collect a whole lot of money. We have to do what we have to do to protect that right and to get this project completed."

A third option would be for Perkins Rowe to file for Chapter 11 bankruptcy, a move which would slow foreclosure proceedings.

Although the future of Perkins Rowe is currently in limbo, for residents of the complex, it is business as usual; tenants will continue day-to-day-operations as before. Perkins Rowe also has 229 apartments and 88 condominiums in addition to its retail and office space, but other than mailing rent checks to a receiver appointed by U.S. District Judge James Brady, the tenants will hardly notice the change.

For the concerned shopper who fears he or she will never wander the miniature pedestrian streets of Perkins Rowe again, no concern is necessary for the moment. Although the financial future of the multi-use buildings is uncertain, its presence for the foreseeable future is.

Originally Published: Issue 814 - September 2, 2009

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