The Lake District developer reaches deal on settling debts for Lakeland development

Corey Davis, Memphis Commercial Appeal

The Lake District mixed-used development in Lakeland has avoided being put up for auction.

On Tuesday, U.S. Bankruptcy Judge Jennie Latta granted a motion to allow Yehuda Netanel developer of The Lake District, LLC to borrow roughly $62.9 million from New York-based lender Vision Global Capital Resource Inc. to pay off outstanding debt owed to lender TIG Romspen US Master Mortgage LP. Romspen had a claim against Netanel in the amount of $56 million, according to court documents.

The Lake District is a $450 million, 160-acre project that surrounds a 10-acre lake in Lakeland. The project at 3380 Canada Road and I-40 was slated to be put up for a live auction on April 30 at the Shelby County Courthouse, but the settlement keeps that from happening now.

A rendering shows the Lake District development, which is in the works in Lakeland.
A rendering shows the Lake District development, which is in the works in Lakeland.

On March 24, 2023, Netanel filed for Chapter 11 bankruptcy and announced plans to reorganize the same day the development was slated to be auctioned off after going into foreclosure. In late February, Latta decided against Netanel's Chapter 11 reorganization plan for the project.

IN THE MEMPHIS SUBURBS: Why Carriage Crossing owners say entertainment is key to helping Collierville mall thrive

According to the Shelby County Property Assessor’s website, The Lake District has 16 parcels.

The Lake District has 17 businesses open including Chick-fil-A, Villa Castrioti, Frost Bake Shop, Lake District Wine and Liquor, Wayback Burgers, Starbucks and Portalas Mexican Restaurant. The Blue Flame Lounge is coming soon, according to its website.

Villa Castrioti is one of the businesses at The Lake District in Lakeland.
Villa Castrioti is one of the businesses at The Lake District in Lakeland.

Lakeland's Vice Mayor Wesley Wright said there was no new construction in the works at The Lake District until the financial issues are resolved.

"I believe Marshall Steakhouse would be the next business to build across from Villa Castrioti," Wright said. "I hope that to be true,"

Corey Davis is the Collierville and Germantown reporter with The Commercial Appeal. He can be reached at Corey.Davis@commercialappeal.com or 901-293-1610.

This article originally appeared on Memphis Commercial Appeal: Developer of The Lake District in Lakeland reaches deal to settle debt

Advertisement