Historic Redman building auctioned for $5.45M

This article was originally published By Steven Oberbeck | Posted - July 8, 2016 at 11:02 AM MDT on sltrib.com and can be viewed here.

Historic Redman building auctioned for $5.45M

By Steven Oberbeck 
The Salt Lake Tribune 

 · December 7, 2006 12:00 am

This is an archived article that was published on sltrib.com in 2006, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

A Salt Lake City-based real estate development company was the successful bidder in a U.S. Bankruptcy Court auction for the historic Redman building in Sugar House.

Pacific Commercial Properties bid $5.45 million for the 30,000-square-foot building at 1240 E. and 2100 South.

"We're planning on continuing to develop the building as a mixed-use property," said Steve Perry, manager of asset development for the 20-year-old Pacific Commercial Properties. "And we're going to go with the same plan the previous owners had in place - the top three floors will be high-end condominiums and the lower three floors will offer office and retail space."

The six-story building, which was added to the National Register of Historic Places in 2003, was the primary asset of Redman LLC, a company owned by well-known Utah investor Victor Ayers and wife Marion.

Redman LLC filed for Chapter 11 bankruptcy in June 2006, but after five months of attempting to reorganize under protection of the U.S. Bankruptcy Court for Utah the company successfully requested that its petition be converted to a Chapter 7 bankruptcy.

The conversion paved the way for the sale of the building by court-appointed trustee Steven Bailey.

Rob Olson of Erkelens & Olson Auctioneers, which handled the auction of the property on Tuesday, said interest in the sale was high, with bidding opening at $4.8 million and quickly climbing to the final sale price.

"It went about as well as it could have gone," Olson said. "There were three active bidders who showed up with their certified funds, and we let them decide among themselves what the property was worth."

Salt Lake bankruptcy attorney Stephen McCardell, who along with attorney Duane Gillman represents the trustee, said last week that Bailey was estimating a $4.8 million sale price would come close to satisfying the claims of most of Redman LLC's secured creditors.

Among Redman LLC's creditors are the Salt Lake City Redevelopment Agency. In January 2005 it loaned Redman $750,000 to help with the renovation of the structure that originally was built in 1947. The original occupant of the building was the Redman Van and Storage Co.