Circuit Judge Roger Young has appointed a receiver in the $23.8 million foreclosure suit against The Navy Yard at Noisette.
The move essentially diverts rental income from 240 acres of Noisette's property holdings at the former Charleston Naval Base to satisfy the company's creditors, including Capmark Finance Inc.
This acreage includes the light industrial area north of Noisette Creek as well as the historic housing and Powerhouse basin vicinity.
The company issued a statement Wednesday saying the appointment is a common remedy available to lenders under most commercial leases.
"Capmark has chosen to use this tool at this time, as it is entitled to do under its loan documents," it said.
The company also said Noisette continues to negotiate with Capmark to buy its note as part of an overall restructuring.
"Despite the challenging conditions that continue to damage the banking and real estate industries, Noisette continues to experience a high level of interest and confidence from tenants, potential purchasers of individual properties and investors in the company," it said.
The development is yet another step in the process that began with a foreclosure suit filed in June and that could end with the public sale of the property at some future point.
Noisette officials remain optimistic that the company's 8-year-old effort to convert the base's northern end into a new American community, one touted as a national example for balancing economic, environmental and social goals, will survive this financial challenge.
North Charleston Mayor Keith Summey has said he hasn't ruled out the city's buying back the property, particularly because Noisette's troubles have increased speculation that the land could be bought and used for a more industrial purpose, such as a rail yard.
The city opposes that plan and recently spent $11,000 to hire legal and real estate efforts to fight it, if necessary.
The approximately 100 acres that Noisette owns that are not subject to the foreclosure suit includes the base's historic hospital district and Storehouse Row.
The Noisette Co. also faces lawsuits from Davis & Floyd Inc., a Lowcountry engineering firm that is seeking $875,587.33 in payments for work done on the site, and from Noisette Investors LLC, which is seeking to collect $5.9 million in connection with a loan and interest due on the former base.