Banks press for Seattle developer's bankruptcy

Three banks have filed a court petition seeking to force longtime Seattle developer Michael Mastro Sr. into bankruptcy proceedings.

Columbia State Bank, First Sound Bank and Venture Bank say in their involuntary Chapter 7 bankruptcy petition that Mastro owes them a total of $9.7 million, and that he is generally not paying his debts as they come due.

If a U.S. Bankruptcy Court judge accepts the banks' petition, Mastro could be forced to liquidate his holdings. Eight other banks have filed papers asking to be notified of further proceedings in the case.

Representatives of Mastro's firm, Mastro Properties, declined to comment Friday.

The firm's Web site says its current portfolio includes four apartment complexes and six office, industrial or mixed-used buildings under construction or recently completed in the Seattle area. It credits Mastro with a "billion-dollar career" during 30 years in local real estate.

The site also lists 16 properties slated for apartment or office development. Among them: the North Seattle land once occupied by the venerable bowling alley Leilani Lanes.

Mastro bought that property for $6.25 million in 2005, and two years later filed an application to build a complex with more than 300 apartments and space for retail and ministorage.

But last month Mastro turned the property over to lender Banner Bank to avoid foreclosure, county records indicate.

Seattle Times business staff