About 100 acres of the King William Commerce Park have been foreclosed on and will be auctioned off June 14.
The lender on the project is Richmond-based Peoples Bank of Virginia, which was acquired last week by First Community Bank.
The foreclosed parcels are assessed by the county at more than $2 million and are owned by King William Land Development Inc., a Mechanicsville-based entity.
Greg Kelly, who works as King William County’s part-time economic development consultant and had tried to help promote the park, said work on the project began around 2007, just before the bursting of the real estate bubble and subsequent recession.
“It was getting a lot of interest right before the bottom fell out of everything,” Kelly said.
Development of the park also was disrupted by the death last year of Roger Kisner, a local businessman who spearheaded the project. His son Shane Kisner has been handling the property since then. He did not return a call by press time.
The property sits about two miles from Hanover County line on Route 360.
Less than half of the project has been built out, Kelly said, but there are a handful of businesses up and running.
The existing buildings at the commerce park include a 30,000-square-foot building that is partially occupied. There’s also a retail component built out for restaurants and stores.
Some lots that have been built out are owned by separate parties and are not part of the foreclosure, according to Bill Lewis, an attorney with Beale, Davidson, Etherington and Morris, who’s acting as substitute trustee on the foreclosure.
The auction property, Lewis said, is made up of mostly of a combination of raw and wooded land and vacant lots.
The owners “were definitely expecting to go in there and make a nice commercial office park,” Lewis said, until the economy got in the way.
The foreclosure is one of the few blemishes on Peoples Bank’s lending record prior to it being acquired days ago. The bank had a $187 million loan portfolio with $4.2 million in past due and non-accrual loans on its books as of the end of the first quarter.
Once it’s auctioned off next week on the steps of the King William County Courthouse, Kelly said he’d like to see the project get back on track.
“From the county’s standpoint, we’re certainly pulling for it, because it’s probably the most marketable piece of property in the county,” he said.