Owner of High Point's Hamilton Square building in bankruptcy

Larry Thomas, Furniture Today Staff -- Home Accents Today, 8/17/2012 11:12:41 AM

HIGH POINT -- The owner of Hamilton Square, a showroom building at 101 S. Hamilton St., has filed for Chapter 7 bankruptcy and two High Point real estate brokers have been retained to sell the property.

The Chapter 7 petition, filed in U.S. Bankruptcy Court in Greensboro, N.C., said Southern Community Bank and Trust, which holds a $5.44 million mortgage, began foreclosure proceedings earlier this year, and a foreclosure auction had been scheduled for Aug. 20.

The auction was canceled once the bankruptcy petition was filed. U.S. Bankruptcy Judge Thomas Waldrep Jr. granted a motion to retain Ivan Garry of High Point Furniture Market Services and Alex Field of Price Commercial Properties to assist the trustee in selling the property.

The showroom building is owned by McDonald Capital Properties Alpha, LLC, an entity controlled by developer C. Wayne McDonald.

Southern Community Bank is the largest secured creditor.

The bankruptcy petition said the owner also owes the city of High Point $55,810 for showroom taxes and owes Guilford County $101,394 for ad valorem taxes.

The petition also list various unsecured creditors who are owed $33,709.