Northland Investment Corp.’s woes as a downtown Hartford landlord continue.
After the Hartford Business Journal reported Monday that Northland’s iconic Goodwin Square office-hotel property has slipped into foreclosure, the company said Thursday that it’s giving up its interest in the XL Center.
In a written statement Northland said it is assigning its limited liability interest in the operation of the XL Center to AEG Worldwide, a California sports management company that it partnered with in 2007 to take control of the arena.
Northland, which is downtown Hartford’s largest commercial landlord, said the move will “allow both firms to focus on their core businesses.”
“The XL Center is a very important element of Hartford 21,” the statement said. “Northland and AEG will continue to work closely together to make the venue the premier regional entertainment destination.”
Northland, in a partnership deal with AEG Worldwide, was chosen by the Connecticut Development Authority in 2007 to take over the management of XL Center.
AEG, which is a wholly owned subsidiary of the Anschutz Company, owns or controls a collection of companies including facilities such as the Staples Center in Los Angeles, the Prudential Center in Newark, N.J., and the Sprint Center in Kansas City, Mo.
AEG also owns several sports franchises including NHL hockey team the Los Angeles Kings.
Earlier this year, Northland/AEG lost control of Rentschler Field after the state ended their contract, and appointed the Bushnell Center for the Performing Arts to manage the stadium instead.
The financial health of Northland and its real estate holdings remains unclear, as the company’s chairman, and longtime real estate promoter, Larry Gottesdiener, has remained out of the Hartford spotlight recently.
But three of the company’s six major downtown commercial properties are currently facing foreclosure.
Monday, HBJ Today reported that Northland’s Goodwin Square holdings – the 330,901-square-foot property that includes the 30-floor office tower and historic Goodwin Hotel – sank into foreclosure in June.
Northland’s Metro Center, the 12-story office building at 350 Church St., and City Place II at 185 Asylum St. are also in foreclosure.
The company has said it is trying to renegotiate the mortgages on those properties, but it has had difficulty doing so because of the tight credit markets.
Northland has missed payments on its $33 million loan for Goodwin Square since January, court records show.
As of June 1, 2010, the outstanding principal balance on the loan was $33 million, and Northland owes more than $1 million in interest payments and penalties, court records show.
Additionally, Northland has failed to pay more than $150,000 in real estate taxes on the property, forcing the lender to advance its own funds to cover the debt, records show.
The loan matures in October, papers show.
Northland also owns the 36-story Hartford 21 tower and the The Standard Building, both on Trumbull Street, and The Crosthwaite Building on Allyn Street.
