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McCourt Behind on Note

July 29, 2004|From Times Staff and Wire Reports

Dodger owner Frank McCourt is at least two months in default on a small piece of property in a South Boston neighborhood, the Boston Globe reported.

The eight-story building on Fort Point Channel, which held the state Department of Revenue's offices, has been vacant since January. The owners of the $22-million note are offering it for sale as "non-performing and in default" because McCourt has not paid interest or principal since April.

According to the offering, McCourt's last payment was April 1. McCourt took out the $23-million loan in 1999, and total monthly payments on the loan are $232,120.

"This situation is not unusual in real estate financing," said Larry Silverstein, McCourt's real estate attorney. "We are in active negotiations with the lender, which we believe will resolve the outstanding issues on this loan quickly."

Resolution could include refinancing at a lower interest rate, with McCourt maintaining ownership.

The half-acre site is part of 24 acres that McCourt has put up for sale in South Boston's Seaport District. He has said that the sale was not necessary to maintain his leveraged purchase of the Dodgers.

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