A creditor has foreclosed on parts of Olmsted Village and its sister center, Camellia Parke Shoppes, but no stores are expected to close.

Last week, local attorney Talmadge Scarborough, acting as substitute trustee in the foreclosure, advertised three of Olmsted's sections for sale next month on the courthouse steps.

The largest is home to Lowes Foods, Rite-Aid drugstore, two restaurants and a dry cleaner. The new Wachovia Bank building stands on another.

Camellia Parke, with a number of upscale shops such as Jos. A. Bank men's clothing store, is the third.

The foreclosed properties are parts of Olmsted Village, a larger complex of shopping centers, offices and a hotel off N.C. 211 just west of Pinehurst. The property is in the Taylortown town limits.

The deals were backed by loans, which were twice modified - once in August 2008 and a second time in January 2009. According to a legal notice, corporate borrowers defaulted on their loans and the lenders foreclosed. Olmsted developer Marty McKenzie is listed in court documents as a guarantor.

McKenzie could not be reached for comment at his office, and calls were not returned. His attorney, James Van Camp, spoke with The Pilot.

Camellia Parke, the Lowes Foods shopping center section of Olmsted Village and the Wachovia Bank site will be offered "for sale at public auction, to the highest bidder, for cash, at the steps to the second level in the main lobby and foyer of the Moore County Courts Facility Building" in Carthage, the legal notice said. The sale is advertised to begin at 11 a.m. Thursday, March 4.

The major "magnet" businesses - Lowes Foods, Wachovia Bank, Rite-Aid, and Jos. A. Bank Clothiers - are protected. Any sale is subject to leasehold rights and other property rights recorded in their favor, according to documents filed with the office of Moore County Clerk of Court Susan Hicks.

Anybody who rented or renewed a rental agreement after Oct. 1, 2007, would be able to terminate their agreement. They would have to give 10 days written notice and pay prorated rent to that date, but the notice of foreclosure sale does give renters that out.

"We saw some notices about a month ago," a manager at Jos. A. Bank said, "but they were taken down."

He said he wasn't worried. The store had a big sale going on and another starting Sunday.

Not all of Olmsted Village is affected by the foreclosure. The long strip of shops and restaurants on the edge closest to the main part of Taylortown is apparently not at risk.

The hotel, Homewood Suites, and the buildings on its side of Olmsted are also not properties subject to this sale.

The Olmsted Village shopping strips are busy places. Taylortown benefits from the centers' tax value and provides police protection and other municipal services.

Early on, Olmsted attracted a number of upscale specialty shops, several restaurants, a 100-suite-only Hilton hotel, medical and other professional services and other businesses. Wachovia Bank opened its branch at 110 Central Park Ave. last February, the second bank in Olmsted Village.

At the time, McKenzie's company said it had signed letters of intent with a number of big-name retail chains.

All the properties being foreclosed are owned by limited liability corporations, but all those corporations are entities McKenzie started and continues to manage.

The land itself was originally owned by one of his companies, Silverado Associates, a limited partnership.

Another company, LOG LLC, is named in documents filed with the court as title holder to properties at Olmsted under foreclosure. McKenzie is listed with the N.C. secretary of state as manager of LOG.

McKenzie and Silverado Associates organized LOG in October 1995. Its registered agent, Ryan Oxendine, resigned last March, leaving McKenzie in place as manager.

A corporation named Camellia Parke was formed in 2002 as a shopping center business. A second corporation, Camellia Parke 2, began in 2007. McKenzie is listed as manager of both. Another limited liability corporation formed in 2007 under the name OVB LLC, is also managed by McKenzie.

The Wachovia Bank property's recorded owner is OVB LLC; the Lowes Foods/Rite Aid shopping center's owner is LOG, LLC.; and the Jos. A. Bank cluster's owner of record is Camellia Parke, LLC. (the older McKenzie-managed Camellia Parke corporation).

Contact John Chappell at (910) 783-5841 or by e-mail at jchappell@thepilot.com.