GRAND RAPIDS, Mich. (WOOD) — 616 lofts, the name behind several major developments in Grand Rapids, has filed for bankruptcy.
616 Lofts developed seven mixed-used residential properties around Grand Rapids in recent years: Lofts at 820 on Monroe, Lofts on Alabama, Lofts on Ionia, Lofts at the Kendall, Lofts on Michigan, Lofts on Pearl and Lofts on Prospect.
The properties, while managed by 616 Lofts, have always been owned by individual investor groups, according to KMG Prestige, the company that now manages the properties.
According to the federal court filing, the company has less than $50,000 in assets and liabilities between $1 and $10 million. The bankruptcy petition also says the company has no properties that need immediate attention, suggesting that 616 Lofts transferred all of those assets prior to the filing.
Additionally, the document indicates that the entity has no funds available to pay off several dozen listed creditors, which include 616 Holdings LLC, the IRS, the Michigan Department of Treasury Bankruptcy Claims Unit, David & Wierenga PC, Rhodes McKee and several individuals.
KMG Prestige said took over management responsibilities for all of the 616 Lofts properties in 2017 and re-branded them as the Lofts of GR Properties in November 2018.
“KMG continues its role, ensuring no interruption of services for the tenants in the seven buildings. There has not been, and will not be any interruption of services to tenants.” KMG Prestige Regional Vice President David Grinzinger said in a statement to 24 Hour News 8 Friday.
Robert F. Wardrop II, the attorney handling the bankruptcy, said, “no comment,” when reached by phone Friday.
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