News & Views » Columns

Going, going, not

by

comment

Alden Park Towers is off the auction block.

News Hits reported last month that the 88-year-old apartment buildings, located along Detroit’s waterfront northeast of Belle Isle, were set to be auctioned off after owners Saperstein and Associates defaulted on their mortgage (“Defawlty towers,” Metro Times, July 6, 2005).

The auction set for Aug. 18 was canceled at the eleventh hour when the Bingham Farms-based firm paid up, HUD spokeswoman Patricia Campbell says.

Saperstein and Associates, of which Lee Saperstein is the managing partner, owed $3 million on the 40-year mortgage. Saperstein attorney Mort Noveck says he’s not sure how much the firm had to pay to bring the mortgage current.

The most recent true cash value of the property, from 2002, is listed on the city of Detroit’s Web site as $3.2 million. Saperstein purchased the property in 1971 for $6.5 million with a 40-year HUD-insured mortgage. Insuring mortgages to foster development is one of HUD’s functions, Campbell has said.

Alden Park Towers started heading toward default in December 2001, Campbell said last month. When a HUD-insured property goes into foreclosure, the department can auction it to recoup some of the losses.

Noveck had said that fixing up the historic buildings, which show some wear and tear, would cost more than $20 million. The cost of rehabbing the apartments and the difficulties of finding a buyer prompted Saperstein to go into default, Noveck said previously.

News Hits called Noveck again to find out what’s up, but he wouldn’t say what Saperstein’s plans are for Alden Park Towers. But he promises that details will be forthcoming.

“Soon we hope to have an announcement about the future of the buildings,” Noveck says.

News Hits is edited by Curt Guyette. Contact the column at NewsHits@metrotimes.com or

We welcome readers to submit letters regarding articles and content in Detroit Metro Times. Letters should be a minimum of 150 words, refer to content that has appeared on Detroit Metro Times, and must include the writer's full name, address, and phone number for verification purposes. No attachments will be considered. Writers of letters selected for publication will be notified via email. Letters may be edited and shortened for space.

Email us at letters@metrotimes.com.

Detroit Metro Times works for you, and your support is essential.

Our small but mighty local team works tirelessly to bring you high-quality, uncensored news and cultural coverage of Detroit and beyond.

Unlike many newspapers, ours is free – and we'd like to keep it that way, because we believe, now more than ever, everyone deserves access to accurate, independent coverage of their community.

Whether it's a one-time acknowledgement of this article or an ongoing pledge, your support helps keep Detroit's true free press free.