Lender Plans to Foreclose on Shoppes at Northway; Asks Court for Receiver

The owners of the Shoppes at Northway are in default on the mortgage for the property, according to a complaint filed in the Allegheny County Court of Common Pleas.

The amount due as of Jan. 24 was $23,688,588.43.

Jefferson-Pilot Investments, acting in place of the original lender, has asked the court to appoint a receiver to manager the property, citing insufficient cash flow and deferred maintenance of the property.

“Plantiff believes that the successful operation of the real property and preservation of its value during the foreclosure process critically depends in substantial part on it being managed by an appropriate third-party professional in order to provide adequate managment and maintenance of the real property as well as to ensure payment of ongoing operating costs and debt service to plaintiff," an attorney for the firm said in the formal request for the receivership.

The firm has proposed Compass Advisory Partners LLC, 401 Wood Street, Pittsburgh, be appointed to replace the Northway Group. 

A hearing on the request is scheduled for Feb. 28. 

The Pittsburgh-based Northway Group defaulted on the note in October, according to court records. 

The owners also owe $91,449.68 in unpaid local taxes, according to county records. 

John T. McKinny, the chief executive officer of McKinney Properties and president of the Northway Management Corporation, a general partner of the Northway Group, declined to comment. 

The shopping center was built in 1962 with the concept of being a family-oriented community shopping destination, according to its website. 

It is anchored by Dick's Sporting Goods, Marshalls, and Petsmart. It lost Border's Books as another of its anchors last fall.