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Lender buys expo center at auction

By Casey Ross
Globe Staff / May 29, 2009

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The mortgage holder on the Bayside Exposition Center bought the property back for $11 million at a foreclosure auction yesterday.

LNR Massachusetts Partners, a division of LNR Property Corp., took control of the center after a short flurry of bidding. LNR represents a pool of investors who bought a 1998 mortgage obtained by Bayside Associates LP, which was formed by some of the principals of the Corcoran Jennison Cos. Bayside defaulted on the loan late last year.

The loss of the property to foreclosure could impede Bayside's plans to convert the center into a $1 billion waterfront development with hundreds of residences, stores, and offices.

A lawyer for Bayside, John Mostyn, said in a statement: "Today's auction perfectly reflects what is going on across the country when giant, faceless mortgage funds become lenders who can't or won't work with property owners during this credit crisis. . . . Bayside Associates LP is interested in hearing their plans for the Expo Center."

© Copyright 2009 Globe Newspaper Company.