News alert: Judge orders Spinosa to pay $202M to Perkins Rowe lender

A federal judge has ruled that KeyBank National Association can immediately take back Perkins Rowe from developer Tommy Spinosa and has ordered that Spinosa pay nearly $202 million to the Ohio-based lender in principal, interest and late fees. U.S. District Judge James Brady ruled today there is “no just reason for delay in entering judgment in favor of KeyBank …” KeyBank, which led a consortium of lenders in the mid 2000s to finance the $170 million project, filed documents to move forward with the foreclosure in July, nearly a year after the court had cleared the way for the bank to take back the mixed use project. That didn’t happen, however, because of several unresolved legal issues between Spinosa and the bank. Sources familiar with the case say the two sides were trying to work through some of those issues, but negotiations fell apart over the summer. When KeyBank filed the latest court documents in July, sources familiar with the case told Daily Report at the time that should the court rule in KeyBank’s favor, the bank could take over the development before the end of the year. There was no word this afternoon on whether that will happen, though as a practical matter it would have little effect on tenants at the property. Attorneys for KeyBank could not be reached for comment. Spinosa’s attorney did not return calls for comment. To read the ruling in its entirety, click here. —Stephanie Riegel