I had quite a bit of feedback to my question as to why Whiteline was dark at night. Seems to me that a lot of folks have an opinion about that. Haven’t seen the article? You can find it here.

I received an email with a lot of questions, actually a lot of great questions. I received permission to post parts of it here, anonymously of course…..

Are you familiar with what’s going on right now with Walters? According to the Des Moines Register and the Business Record several banks are foreclosing on a few of his properties/developments.

Here’s the details:

Three area lenders have filed lawsuits seeking to foreclose on at least three projects being developed by West Des Moines-based Oaks Development.

The lawsuits also named Oaks’ sister companies, owners John C. Kline and Randy Walters and others in the filings. Foreclosures include:

- Legacy Bank seeks about $500,000 loaned on Altoona property.

- Bank of the West seeks $1.4 million repayment of loans for Oaks’ Timberline development in Urbandale.

- First Bank of West Des Moines seeks $4 million in loans, interest and fees for the Meadow Cove Condominiums project in Des Moines.

Source, Des Moines Register

And I found this too:

Earlier this month, three Central Iowa banks filed foreclosure petitions on more than $6 million in past-due mortgage loans on 25 residential properties owned by Oaks Development Co. and its general partners, John C. Kline and Randy Walters.

In other legal action, builders Dave Walters and Dan Stanbrough are fighting a foreclosure on an office plaza on which they guaranteed $1.3 million, as well as a $2 million foreclosure on a half-vacant strip mall they completed about two years ago in Indianola. In a third foreclosure case, Walters and Stanbrough could lose about 36 acres of development land near Easter Lake. The land, on which $734,000 is owed, is scheduled to be auctioned by the Polk County sheriff next month.

Source, Business Record

Is this the same Walters that is partnered on Whiteline Lofts? There’s a lot of stuff in the Business Record about guarantees and cross-collateralization, in fact one of the properties being foreclosed upon isn’t even late–they’re foreclosing because of the other ones that are late…..

The biggest question here is what Walters other troubles will mean for Whiteline.

If Walters is losing property to the bank one can safely assume money is a little tight. If Walters is the money partner on Whiteline (which I’ve been told he is, but cannot verify) then that can’t be good at all. If he’s not, I don’t see any big deal to this.

I will say if there’s something to this I’ll be very disappointed. Whiteline is pretty cool in my book, and I hate to see mistakes in the suburbs come bite the cool stuff downtown in the butt.

Here’s the link from Whiteline’s site showing Walters as a partner. Here’s the link on Walters site showing Whiteline Lofts. I would also recommend that you read both articles and make your own decision. If I am wrong about this, please be sure to let me know.

I’m told that that a lot of insiders are buzzing about what’s going to happen with this and that rumors are swirling like crazy.