The 22 Exchange complex has been spared from foreclosure and won't be sold at a Summit County sheriff's auction.
The massive residential and retail complex in downtown Akron was slated to be auctioned in early December. But it was pulled from the sheriff's sale at the request of lender Wells Fargo, which had foreclosed on the property last year.
Court records indicate the bank and former owner 22 Exchange Student Housing worked out an agreement behind the scenes to deed the property to Wells Fargo "or its assignee" to avoid foreclosure. The court records do not say who the new owner is.
Property records indicate the complex is now owned by RSS COMM2014 CRE18 OH ESH LLC, a limited liability company that was incorporated in November by Miami-based Rialto Capital Advisors. It's unclear whether Rialto Capital, a real estate investment and asset management company, owns the property.
Wells Fargo and Rialto Capital did not return phone messages. Employees working at 22 Exchange declined to tell a Beacon Journal/Ohio.com reporter who owns the property.
Court records and property records do not state a sale price.
22 Exchange has been appraised at $24 million.
22 Exchange is a prime piece of downtown real estate that covers an entire city block between Cedar, High, Exchange and Main streets — everything but the historic AC&Y building. It's made up of housing for University of Akron students and retail businesses such as Jimmy John's, Insomnia Cookies, Hair Geek Studios and Brubaker's Pub. It also contains several empty storefronts.
When it opened in August 2009, 22 Exchange was heralded as a new hot spot for students. At the time, the developer hoped it would become a bustling housing and retail complex for young adults. But Wells Fargo foreclosed in February 2018, arguing that 22 Exchange Student Housing had failed to pay on its $19.5 million mortgage.
In its complaint, the bank said it was owed more than $18.9 million.
Rick Armon can be reached at 330-996-3569 or firstname.lastname@example.org. Follow him on Twitter at @armonrickABJ.