PORTLAND — KeyBank officials say the bank is in negotiations to sell Bayside Village, a student housing development on Marginal Way that was put under the control of a receiver this summer.

The 100-unit building is in the heart of a redeveloped stretch of Marginal Way, next to a 10-story building that houses medical offices and a law firm, and almost directly across the street from the recently opened Trader Joe’s market.

KeyBank went to court in June, saying the company that developed the building, Bayside Village Student Housing, had defaulted on the mortgage. The bank said the company owes the full $20.82 million that it borrowed in July 2007, plus more than $30,000 in interest.

The bank said the developer’s financial problems left it unable to manage and maintain the property. A U.S. District Court judge appointed Boulos Property Management to take over the building’s operation.

Documents filed by the bank said the building was only 40 percent occupied this spring.

A call to Morris Fisher, president of Boulos Property Management, seeking information on the current occupancy of the building was not returned Tuesday. Joseph Cloutier, the lead developer and manager of Bayside Village, also did not return a phone call.

Laura Mimura, a spokeswoman for KeyBank, said the bank didn’t market the building, but potential buyers started to come forward shortly after the court filing.

“There have been many parties who have been very interested in this property,” she said, but confidentiality agreements with potential buyers prevent her from identifying them. She also declined to discuss a possible purchase price, and said that because the bank never marketed the property, there was no listing price.

She said the interest has led to negotiations, which the bank hopes will be concluded around Jan. 1.


Staff Writer Edward D. Murphy can be contacted at 791-6465 or at: [email protected]