EP Award Promo

Regional lender says West Glen in default on development loan


Financial turmoil at West Glen Town Center continues, with a lender based in Jefferson City, Mo., claiming that the commercial and residential district is in default on a $30 million loan.

Midwest Independent Bank claims that West Glen Town Center LLC and its individual investors owe $26.4 million on a loan initially issued by First Bank of West Des Moines for the development of the Keystone and Promenade buildings, both of which were completed in 2009, and a parking garage.

Keystone and Promenade have one commercial tenant each. Keystone is a mixed commercial and residential property, and the majority of its apartments are occupied. The lawsuit was filed Tuesday in Polk County District Court.

The previous day, four investors sued Bill Van Orsdel, a key player in the development, for fraud, breach of contract, unjust enrichment and other charges connected with his management of West Glen. Van Orsdel was manager from 2004 until April 2009, when partners voted to replace him with his longtime friend and business partner Gary Kirke, the majority stakeholder in the development.

Midwest Independent Bank is a so-called banker’s bank, providing services to community banks that are unable to package large loans. The bank holds about 93 percent of the loan, which was issued in 2007 by First Bank.

americanequity web 040123 300x250