With Reorganization Plan, Foreclosure on Lake District in Memphis, Tennessee Does Not Proceed

The foreclosure hearing for Lake District in the metropolitan area of Memphis, Tennessee, has been canceled. In a statement released by Yehuda Netanel and his legal team, they indicate that Lake District filed a reorganization petition under Chapter 11 of the Federal Bankruptcy Code. Consequently, the foreclosure was avoided, and Lake District is currently exploring financing and capital investment opportunities to restructure its debt and satisfy its creditors.

Meanwhile, Lake District continues its regular operations, developing the main retail, commercial, and residential area of Lakeland. Rumors about the foreclosure of this mixed-use development in the suburb of Lakeland, in the Memphis metropolitan area, have been circulating for some time. However, Mr. Netanel described this as a mere “bump in the road,” highlighting his reorganization plan and affirming his unwavering commitment to creating something unprecedented in the Memphis area. He also emphasized that the reorganization plan naturally includes the settlement of outstanding debts with its suppliers.

Josh Roman, mayor of Lakeland, expressed his joy with the recent news about the halt of the foreclosure process and what Mr. Netanel announced regarding the settlement of debts and improvements to tenant conditions.

Despite some criticism for the lack of stores and some businesses in the project, Mr. Netanel attributes these issues to the Covid pandemic and rising interest rates and believes that these difficult market conditions have already been overcome, allowing him to position Lake District more favorably as more tenants and stores join his project. For this reason, he now plans to add about 13,000 square feet of commercial space.

One of the most notable announcements about the new tenants of Lake District is that of the fast-food giant Chick-fil-A, which will be opening a location soon. It is also noteworthy that other retailers like Hollywood Feed, a local pet food store, and Lakefront Wellness, a medical office, will join existing ones like Frost Bake Shop, Starbucks, Olive House Mediterranean Grocery, and Villa Castrioti Italian Restaurant, among others.

Available Foreclosures:

Lakeland: 5 houses available.

By Elias DaSilva | October 17, 2024.