The potential new buyer of a troubled Lakewood mobile home park that went through an unprecedented city cleanup in 2009 plans to close it and build an apartment complex on the property.
Momentum Partners, a Tacoma-based commercial real estate firm, has emerged as the latest suitor for the Fir Acres Mobile Home Park, which the city has threatened to close because of numerous health and safety violations.
A court-appointed receiver asked a judge to terminate an agreement she’d signed with another buyer after that buyer lowered his bid due to the property’s condition and after Momentum offered more money. Pierce County Superior Court Judge Katherine Stolz approved a sales agreement with Momentum during a court hearing Aug. 26.
The other suitor had said he planned to keep the property open as a mobile home park.
Gretchen Pratt, president of Fir Acres’ homeowners association, said she learned of the possible closure from the association’s lawyer and will notify residents at a meeting Tuesday.
About 60 families again face the prospect of losing their homes, she said.
She acknowledged that closing on the prior offer would have meant less money for investors, but it would have allowed the residents to stay in their homes.
“I think someone should have looked out for the people, not just the dollar sign,” Pratt said.
Momentum must deposit its earnest money by Sept. 26. The sale would close Oct. 20.
Momentum representative Donald Bartlett said he’s “100 percent confident” the sale will close. It would buy the property for $825,000.
Bartlett said his firm plans to build up to 274 apartment units on the property, catering to military personnel and families stationed at Joint Base Lewis-McChord. Rent would range between $1,000 and $1,200 a month, he said.
State law requires owners to give mobile home tenants 12 months’ notice before they close a park. Bartlett said it could take up to an additional year to secure the necessary land-use approvals.
Bartlett said he’s open to providing the tenants financial assistance because the last thing he wants to do is put people out on the street.
“I’m not going to be ruthless, but at the same time I’m not going to be held hostage,” he said.
The prior owner, SLI Associates LLC, gave up on the failed investment in late 2009. The court appointed Renee Rouleau as receiver to manage the property until she could find a new owner.
An inspection of the property in February 2009 revealed numerous health and safety violations, leading Lakewood to initiate what it described as its most complex abatement since it became a city in 1996.
The work removed numerous unsafe mobile homes, smaller structures and garbage and fixed up the park’s electrical system. The city spent about $140,000, but officials expect to recover the money from the pending sale.
David Bugher, Lakewood’s assistant city manager for development, said there’s been debate at City Hall about when to close Fir Acres as the search for a new owner drags on. The abatement process has addressed the most serious issues, but the property continues to deteriorate as it waits for a buyer, he said.
“Eventually, if the market doesn’t respond, I could see the city closing the park,” he said.
The previous suitor was Olympia resident David Clarke, who signed an agreement to buy the property for $800,000 but lowered his offer to $650,000 based on the condition of the property. He planned to make repairs and keep the park open.
After being “bumped,” he argued in court that there’s no evidence Momentum’s offer is in good faith. Clarke said in an interview that he doesn’t agree with the judge’s decision but has decided against contesting it.
Rouleau said she went with Momentum because Clarke’s revised offer was well below the value of the property.
The judge terminated a sales agreement with Fir Acres’ first prospective buyer after he failed to comply with its terms.
Rouleau said there’s another buyer waiting in the wings if Momentum doesn’t close the sale.
Christian Hill: 253-274-7390 christian.hill@thenewstribune.com Twitter: @TNTchill
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