Developer Vincent Kuttemperoor and his sons, Ajay and Sanjay, have lost control of a prime 66-acre development site in Brookfield, where they had hoped to build offices, a hotel, housing and retail space.
The Percheron Square site, west of Calhoun Road between I-94 and Blue Mound Road, is now owned by Water Street Land LLC, a company formed by M&I Marshall & Ilsley Bank, according to documents filed with the Waukesha County Register of Deeds.
The land was deeded to Water Street Land by VK Bluemound LLC, an affiliate of the Kuttemperoor family's VK Development Corp.
The documents show that no money was provided for the land.
Also, the documents say that Water Street Land "specifically reserves the right to foreclose its mortgage. This deed is not taken in satisfaction of (VK Bluemound's) mortgage."
VK Bluemound owed $12.4 million to the bank as of January 2005, according to public documents.
That mortgage was filed shortly after VK Bluemound bought a portion of the development site, known as the Ruby Farm, for $7.75 million. Another portion of the development site, the former WTMJ-AM tower site, was purchased in 2003 for $3.4 million.
VK Development executives haven't returned phone calls about the land transfer. M&I is evaluating alternatives for the development site, but hasn't yet made a decision regarding the property, bank spokeswoman Sara Schmitz said Thursday.
The Kuttemperoor family, operating under the name AVS Development Inc. (for Ajay, Vincent and Sanjay), planned to create Percheron Square on the Brookfield site. The project was to include shops, restaurants, offices, a 126-room Marriott SpringHill Suites hotel, and up to 295 condos and senior housing units.
But the project plans ran into the recession, and nothing has been built on the site.
Meanwhile, the Kuttemperoor family continues to face a $75 million Florida foreclosure suit that targets their Treviso Bay luxury housing development. The lenders in that lawsuit include M&I.