The former headquarters of Peregrine Financial Group in Cedar Falls could soon be sold.
The business shut down after $200 million of customer funds went missing. Company CEO Russ Wasendorf, Sr. is now serving a 50-year federal prison sentence for his role in the fraud.
Thursday, a New York real estate firm opened the PFG building to potential buyers. Selling PFG's headquarters is the final step in helping recoup money Wasendorf's investors lost.
Russ Wasendorf, Sr. didn't just run PFG. He also had a successful restaurant, a sprawling private estate with indoor pool, a small downtown commercial space, and a warehouse, all in Cedar Falls. In the end, getting those properties, along with Wasendorf's personal belongings, sold will only repay a sliver of the $200 million dollars PFG customers lost.
The PFG headquarters building is massive, coming in at over 48,000 square feet of space, sitting on a 22-acre lot. Built in 2008, the property's estimated to be worth nearly $20 million. Now the fallen empire could be home to a new business. It's attracting possible buyers from all over the country.
The property will take a special buyer to purchase the PFG headquarters here in Cedar Falls, not only because of its sprawling space. A lot of money was also invested into the property to make it reach the highest possible energy efficiency rating, including the reflective glass panels that cover the facade.
Other eco-friendly features include green building materials like bamboo and natural stone, along with geothermal heating and cooling.
The building also features a lot of perks from a kitchen and cafeteria, to exercise facility with locker rooms, daycare center, underground parking, and of course loads of office space.
One offer of $3.4 million is on the table. Other bids will be accepted through May 24th, ahead of the property auction May 31st.
All of Russ Wasendorf's other properties have now sold.
A local restaurant owner has bought both my Verona and the deli at a price tag of $850,000. Buyers of Wasendorf's home will close on the property Friday, shelling out $595,000 for it. The warehouse sold for $295,000. A corporate house on Pheasant Drive will bring in another $334,000.
The final tally of proceeds from the auction of Wasendorf's personal belongings hasn't been released.
But that money, combined with the real estate sale, and potential sale of PFG headquarters, the net profit likely won't be even 10 percent of the $200 million customers lost when the company folded.
The up side is that it looks like someone will end up buying the PFG headquarters, and once a new business goes in, it will help the Cedar Valley economy by putting people to work in a building that's sat empty since July.
A federally appointed receiver in Chicago is handling all of Russ Wasendorf, Sr.'s assets. He has to present any final offer for sale of the PFG headquarters to the court for approval. Once it's sold, money will then be doled out to PFG's former investors who lost money.
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