The Lake District development faces foreclosure
LAKELAND, Tenn. (WMC) - A multi-million dollar development in Shelby County is now in foreclosure.
The Lake District, the $300 million development off of I-40 and Canada Road, is a major development expected to generate millions of dollars once complete.
The project is advertised as a “development designed for the future” and is slated to include homes, shopping, restaurants, and even a man-made lake.
However, now it’s a development with a not-so-certain future. The property could soon be sold to the highest bidder.
In 2017, developers expected the project to be complete by 2020.
Almost three years and a pandemic later, some homes are standing, stores and eateries are open for business, but the first phase of the project, which is also supposed to include a movie theater and specialty grocery store The Stock Market, is not complete.
According to a notice of foreclosure, the lender TIG Romspen US Master Mortgage LP, an exempted Cayman Islands limited partnership, is asking for $60 million.
“It really is a thriving area of Lakeland, and I’m just hopeful that this doesn’t prevent that further development from happening,” said Shelby County Commissioner Mick Wright.
The notice of foreclosure posted in February and says the “property or portions of it” are up for sale.
The man behind the development, Yehuda Netanelk, told Action News 5:
“It’s not our intention to take it to foreclosure.”
Lakeland Mayor Josh Roman shared his thoughts on Facebook, saying he is grateful for the investment in Lakeland. He also posted:
“This is not the first time this developer has been in this position and he successfully navigated a path to where the project is now with many great businesses we enjoy.”
According to our news partners at The Commercial Appeal, Netanel paid the lender about $1 million in 2017 to avoid foreclosure.
Wright, who represents Lakeland, echoed other city leaders with hopes that developments at the 161-acre project can continue.
“Certainly the Lake District is a big key for Lakeland,” said Wright. “It’s a big area of growth and development of growth for Lakeland and Shelby County. It’s a massive development that’s been planned. I’m hopeful that going forward that we’re able to work this out.”
The Lake District is scheduled to be up for auction at noon Friday, March 24, at the Shelby County Courthouse.
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