Prominent Developers May Lose Downtown Site : Real estate: Building in The Exchange may be auctioned if Howard-Platz Group fails to pay off loan.

A group of developers who built some of the city’s most prominent office and retail buildings in the 1980s could lose one of its signature properties this month unless it can pay off a $5-million loan now in default, officials said.

The 10-story structure at 100 N. Brand Blvd. was an aging bank and office building when the Howard-Platz Group purchased it in 1984, refurbished it and made it part of The Exchange, a two-block retail and commercial project jointly built by several developers. Officials of the city Redevelopment Agency said they learned this week that the development partnership, which has been reeling from the recession for several years, might lose the building at a foreclosure auction scheduled this month.

“Unfortunately, their properties continue to have difficulties,” said Redevelopment Director Jeanne Armstrong.

“They’ve developed most of the major buildings in Glendale, so we have worked very closely with them. Like most developers, the value of their property has decreased and now the loan amount is greater than the property values.”

Principals of the development partnership did not return phone calls seeking comment. It is not known whether the firm is trying to raise capital to save the property.

The Howard-Platz Group was formed in the 1980s by Don Platz, Frank Howard, Mike Howard and Greg Galletly, all prominent figures in Glendale real estate and construction. The group controlled various development projects and properties through a series of limited partnerships, some of which included other investors.

The 100 N. Brand building is owned by Brand / Broadway Partners, a venture in which the Howard-Platz Group is managing partner.

During Glendale’s office building boom of the late 1980s, the Howard-Platz Group’s subsidiaries built the city’s tallest skyscraper, a 23-story building at 500 N. Brand Blvd., and an office building with an adjacent movie theater at 500 N. Central Ave.

But the company was hurt by the recession of the early 1990s. Lawsuits were filed against it for non-payment of debts and leases and some of its subsidiaries filed for bankruptcy protection. Its losses included two other office / retail buildings in The Exchange, which were repossessed by a lender.

Armstrong said the developer also has an outstanding debt of about $700,000 to the Redevelopment Agency for land write-downs and other subsidies related to properties in The Exchange, but no action has been taken to collect the money.