22-04-2025
- Business
- Business Journals
Owner of grocery-anchored Baum Boulevard property faces court order in receivership
A prominent East End property faces an uncertain future as its ownership group grapples with financial challenges, including a multi-million dollar debt and recent court orders.
Story Highlights John Odell's ownership group faces foreclosure and receivership issues.
Judge Christine Ward ordered repayment of $179,000 to Newmark.
The property has a $10.95 million debt balance.
The ownership of a high-profile property in the East End is facing new financial repercussions in the Allegheny County Court of Common Pleas.
It's the ownership group affiliated with developer John Odell, whose Michigan-based Warner Pacific bought the former Day Baum Chevrolet car dealership real estate on Baum Boulevard about 15 years ago and redeveloped most of it into a mixed-use property comprising an Aldi store, office space and a Yinz Coffee shop, a focal commercial property totaling more than 150,000 square feet that's become a major East End draw.
Yet U.S. Bank filed a foreclosure action on the property's ownership - comprising of the affiliated firms Baum Boulevard Investors LP and Baum Boulevard Ground LLC - last June, and Odell's ownership group has been in receivership on the properties since September, when an affiliate of Newmark was appointed to the position of receiver.
Court records show the receiver filed exhibits in March arguing that "rather than obey the order of this court and deliver … diverted rent to Newmark as collected rent, defendants and John Odell, who managed those entities, directed those funds to other entities and persons, including Odell's family members, that had nothing to do" with overseeing the property.
On April 16, Judge Christine Ward ordered Odell and his affiliates to pay back more than $179,000 that Newmark argues was wrongfully diverted.
Odell didn't respond for comment.
Kirk Burkley, a lawyer who represents Baum Boulevard Investors LP and Baum Boulevard Ground LLC, declined to comment, as did Timothy Parker, a lawyer for Buchanan Ingersoll & Rooney PC, who represents U.S. Bank in the legal matter.
The new court order comes as the interests of Odell has already lost a portion of the larger real estate package to a lender, a long-deteriorating dealership building across Baum Boulevard once considered for a new parking garage that continues to be marketed by Jarbo Imperatore of the Pittsburgh office of JLL.
Imperatore reports he is marketing the property for sale or a ground lease and activity has "been extremely strong."
The foreclosure action filed last year detailed that the loan was not paid off in full by a maturity date of November 6, 2023, resulting in a default for an ownership group that also faced a host of liens from construction firms, the Pittsburgh Water & Sewer Authority and other vendors.
Court records indicate a debt balance at the time of $10.95 million.
Nobody who shops at the usually busy Aldi store or gets coffee at Yinz Coffee would be likely to notice any issues.
Ken Zeff, owner of the Yinz Coffee and a companion Fancypants Popcorn store, said he sees a lot of traffic going in and out of the neighboring Aldi store and views his Baum Boulevard location as one that continues to be a stable source of business.
"It was always a pretty solid store for us, and John was always a good landlord," said Zeff of Odell.
He expects the property would be in demand if it comes available again by its receivership.
"Something needs to happen there for sure," he said. "It's a pretty hot street right now."
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The other side of the former Day Baum Chevrolet dealership building refashioned into the Offices @ Baum along with a Yinz Coffee Shop.
TIM SCHOOLEY
When or if that might happen remains unclear. There's little indication in the court record to suggest the property might go to sheriff sale.
Judge Ward's order requires the $179,000-plus sum to be paid to the receiver in 10 days.
Andrea Geraghty, a real estate lawyer for Meyer, Unkovic & Scott, said it's likely up to the receiver to decide on whether to force a property into a sheriff sale, which doesn't necessarily require a court decision.
"If they don't turn over the money, then the receiver has a choice about what to do," she said.
She added that such legal requirements are a hassle for lenders.
"The banks don't want to own this property," she said. "They want the property to be managed correctly so the mortgage can be paid."
