Auction date set for PFG office building

2013-03-01T17:00:00Z 2013-04-10T11:45:18Z Auction date set for PFG office buildingBy JIM OFFNER, Waterloo Cedar Falls Courier

CEDAR FALLS, Iowa --- The former headquarters of the now-defunct Peregrine Financial Group Inc. is going on the auction block May 31, the receiver in PFG's Chapter 7 bankruptcy case announced Thursday.

The 48,250-square-foot office building that PFG built at a cost of $18 million and opened in September 2009 will be auctioned at 10 a.m. in the office of Chicago attorney Michael Eidelman, the court-appointed receiver for Russell Wasendorf Sr. in the bankruptcy case.

Eidelman has hired GA Keen Realty Advisors of New York to market the building, which was built to Leadership in Energy and Environmental Design Gold certification standards.

The bid deadline is 4 p.m. May 24.

Bid procedures are available, and Eidelman can accept offers prior to the auction, said Matthew Bordwin, Keen Realty Advisors' co-president.

"The receiver has some pretty broad authority to make revisions to the process," Bordwin said.

Eidelman did not return telephone and email messages requesting comment.

"Notoriety" will be a marketing asset of the building, Bordwin said. He referred to Wasendorf, the former CEO of PFG, who in July 2012 saw a 20-year scheme that bilked more than $216 million from PFG investors come crashing down on the commodity futures company he had built and moved into the new complex in rural Cedar Falls in 2009. Wasendorf attempted suicide July 9 on the building's grounds. The company filed Chapter 7 bankruptcy the next day.

Wasendorf recently entered guilty pleas in federal court and, on Jan. 31, drew a 50-year prison term.

His property was auctioned off in December, and pieces of his real estate, including his home, have been sold.

"People have seen over a number of months stories about this building and the court case," Bordwin said. "I think we're going to have a lot of people looking at it. I would expect we'd get lots of investor interest. A beautiful empty building is what investors buy."

He said he couldn't guess how many bidders the office complex would attract.

"We just don't know if we have seven or 40 parties step up; I wouldn't be surprised with either," he said.

Eidelman has passed along a list of potential buyers who have inquired about the building, Bordwin said.

Some of them are from the Cedar Valley, Bordwin said, although he declined to say how many or who they were.

"I expect along the way we'll have some good interest from local businesses and investors," he said.

Eidelman could accept a "stalking horse" bidder, as he has on other former Wasendorf properties, such as the former PFG warehouse and the MyVerona restaurant building, Bordwin said.

"There's probably a good possibility that that will happen," Bordwin said. "I personally like them. It sets a minimum price and gets other people to the table."

For more information on the building and auction process, call (646) 381-9222 or go to

Meanwhile, Waterloo developer Ben Stroh, who purchased the old PFG warehouse, at 5729 Westminster Drive in Cedar Falls, for $357,000 about two months ago, said Thursday the deal should close "any day now."

Stroh said he likely will rent the building.

Copyright 2015 Waterloo Cedar Falls Courier. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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