Former Polaroid site’s fate uncertain

“I’m not counting [on] anything one way or the other,’’ Mayor Jeannette McCarthy said. “I think they’re going to try to work something out. That’s what they’ve said to me.’’

The 119-acre property on Route 128 is owned by Watch City Development LLC, a joint venture of Polaroid and a developer, Related Cos. of New York.

Plans for a 1.7 million-square-foot project are before Waltham’s City Council, but Helaba, the German bank that holds the first mortgage on the property, has scheduled an Oct. 9 foreclosure auction.

Related is working through US Bankruptcy Court proceedings to try to stay on the project, the mayor said. Polaroid sought bankruptcy protection last year.

“Related officials told me they’re going to work through the Bankruptcy Court to try to keep the project going,’’ McCarthy said.

In a prepared statement, Related said, “Our attorneys are reviewing the issues, and we do not comment on financial matters.’’

Barry Braunstein, a Boston attorney representing Helaba, did not return calls seeking comment. Polaroid officials could not be reached.

“It’s not surprising to hear that Related still wants to stay in it,’’ said David Begelfer, chief executive of the commercial real estate trade association NAIOP Massachusetts. “This is the type of project that is right up the alley for Related. They have the experience for it.’’

Begelfer said there are three ways Related could see the project to completion: Bid on the property itself, partner with a buyer as a fee-based developer, or be retained by one of its lenders to develop the property.

Others will probably be interested in the property, Begelfer said, but their bids would have to be high enough to convince Helaba to sell.

“In normal times, there would be a frenzy to buy this property,’’ Begelfer said. “But these are not normal times. No one’s going to pay a premium right now for this property.’’

Vincent Valvo, publisher for the Boston real estate data firm Warren Group, said it is “highly likely’’ that one of the project’s current lenders will hold on to the site after the auction.

“You’re going to have a lot of folks interested in bidding on this,’’ Valvo said. “The question is at what level they’re going to bid and whether they’re going to be able to find the financing.’’

Paul Saperstein, whose Holbrook company was hired by Helaba to conduct the auction, said he has heard from potential buyers, but he would not say who or how many. “There have been calls, naturally, as soon as the ad hit the paper,’’ he said.

Barry Winston, director of development for the Waltham West Suburban Chamber of Commerce, said he hopes the project goes forward, adding that it would bring tax revenue and commercial traffic to the city.

“It was a project that almost everybody seemed to like,’’ Winston said. “We would be sad to see it lost or changed. Related is a very good developer.’’

Correction: Because of an editing error, a photograph that appeared with a story in Tuesday's Business section about the former Polaroid property in Waltham was of the wrong building.