Buyers sought for Spitzer, Nicholas buildings

A year ago this month, downtown Toledo's Nicholas Building was shuttered when its West Coast owner struggled with real estate financial difficulty.

The Nicholas Building is still mothballed, but the principal mortgage holder of the adjacent Spitzer Building, which has remained open, said he hopes within the next few months to find a solution that could benefit both downtown edifices.

"Our ultimate goal here is to sell both buildings and we are very much interested in and looking for buyers," said Lyman F. Spitzer, who has become the Spitzer Building's principal owner.

"So, interest in these buildings from somebody could have a great effect on what our ultimate course is."

Technically, the Ergur Private Equity Group of San Francisco owns both buildings, but it no longer has the financial wherewithal to manage and market them. Mr. Spitzer and a group of Spitzer family members are the first mortgage holders on the Spitzer building.

The Ergur Group paid $314,000 in 2008 for the 17-story Nicholas Building at 608 Madison Ave. But it closed last September with the tenants vacated and power shut off because of unpaid bills.

Since then, Mr. Spitzer has assumed care of the Nicholas Building, having his Spitzer Building maintenance man run the heat in the winter and run sump pumps in the basement to keep the building from flooding.

Meanwhile, the 10-story Spitzer Building at 520 Madison Ave., across Huron Street from the Nicholas Building, which was bought by the Ergur Group in April, 2009, for $800,000, remains open but is less than half-filled.

The Ergur Group still owes money on the purchase price of the Spitzer Building.

Last year, the Spitzer family came to an arrangement with the Ergur Group: if the Spitzers can find a buyer for either building, Ergur will sell. Thus far, there have been no takers and a sealed-bid auction in October also did not generate an acceptable offer.

Mr. Spitzer said family members are "evaluating all of our options. Perhaps it may take a foreclosure or a receivership."

He added that he expects to resolves the ownership situation for both buildings before year's end.

Meanwhile, the family will continue "to do what is necessary" to protect the Nicholas Building, Mr. Spitzer said. He added that tenancy in the Spitzer Building, while not good, "is meeting our cash requirements."

No one could be reached for comment at Ergur Group offices in San Francisco.

Contact Jon Chavez at:

jchavez@theblade.com

or 419-724-6128.