High Point's Showplace in receivership

Owners default on $81 million note

Larry Thomas -- Furniture Today -- Home Accents Today, 8/25/2009 8:20:00 AM

Showplace and four other downtown showroom properties have been placed into receivership by a Guilford County judge after its owners defaulted on an $81 million note.

According to documents filed in Guilford County Superior Court, the Charlotte, N.C.-based firm of Lincoln Harris LLC has been named to manage the properties while they are in receivership.

The court filing doesn't say how much of the note is in arrears, but says the note holder, Bank of America, can take possession of the property and "receive all rents and other income" if the owners default.

Typically, a property is placed into receivership while foreclosure proceedings are underway until it can be sold, but it wasn't immediately clear if the Showplace properties are on the market.

The receivership involves Showplace and Showplace West (the former First Factors building at 101 S. Main St.), as well as smaller showroom buildings at 200 N. Hamilton, 320 N. Hamilton and 330 N. Hamilton. All told, the properties have about 950,000 square feet of showroom space, including about 470,000 square feet in Showplace.

It's the third largest group of showroom properties in High Point, after the International Home Furnishings Center and Merchandise Mart Properties Inc. holdings.

The properties were sold in the fall of 2005 to a pair of local investors, Maurice Hull and Coy Williard, and a private equity group.