Garrett Neese/Daily Mining Gazette Receiver of Finlandia properties O’Keefe and Associates has filed a motion to abandon 6 properties. A offer for Hoover Hall, shown in the background of this photo was signed Thursday.

HANCOCK — The receiver for the former Finlandia University properties has filed a motion in Ingham County Circuit Court to abandon some of the largest properties on campus, saying it could not find buyers willing to pay enough for the buildings.

O’Keefe and Associates Consulting, LLC, which was appointed as receiver of Finlandia’s properties in April, is seeking to abandon six of them: the Jutila Center, Mannerheim Hall, Nikander Hall, Wargelin Hall, the Paavo Nurmi Center and Old Main.

“There was some initial interest (in the Jutila Center) at amounts that wouldn’t cover the lien on them,” CEO Patrick O’Keefe said Thursday. “That’s true with Old Main, too. Paavo Nurmi doesn’t have any parking, and the lender didn’t want to put that into an auction.”

The firm had initially anticipated auctioning off properties in October. However, the secured lenders were unwilling to work with a national real estate marketing firm for the auction, or fund ongoing expenses, O’Keefe said.

“We had an auction house in Chicago lined up to sell all these buildings, and the lenders wouldn’t put them in,” he said. “So we’re negotiating now for potential surrenders to the lenders and they can do their own auctions, and they can do whatever they want … the lenders are being so smart, but they wouldn’t cooperate with us. These properties are generating almost no interest above the mortgages.”

In a press release Wednesday, O’Keefe mentioned a need to generate revenue to pay teachers who deferred summer salaries as well as local creditors. With little or no equity, O’Keefe can also not fund the costs of maintaining and heating the largest properties over the winter, O’Keefe said. There are logistical problems with maintaining the buildings now that they’re separated, O’Keefe said; in some cases, they need to grant easements to allow people to access utilities under their building.

“These big ones, those have been neglected for a very long time, and no one wants to pay for them,” he said.

O’Keefe has a hearing on Sept. 20 on the abandonment motions and other items.

Once the properties are abandoned, Finlandia will still own them, but will not be responsible for the upkeep. O’Keefe said putting the buildings in limbo will hopefully accelerate discussions with lenders.

“We’ve offered them deeds, but we want to be paid for it, some nominal amount, and we’ll surrender,” he said. “Right now, we’re not even getting responses. It’s crazy. Nobody has a sense of urgency, but we do, because we don’t have the money.”

O’Keefe has sold or agreed upon purchase terms for about 12 parcels, and is actively shopping another four, according to the release. The four being marketed include the leadership house and a couple of lots.

Items already approved for sale in Ingham County Circuit Court include three parcels on Navy Street and a building at 417 Mine St., according to online court records. O’Keefe has also filed motions to sell McAfee Field and four lots on Franklin Street.

O’Keefe defended the firm’s efforts to find buyers, noting mass media publicity efforts and reaching out to 400 to 500 developers in a five-state area. The buyer for Finlandia Hall is based in New York and backed by a London private equity fund, he said.

“We started with 26 properties with an average marketing time of nine months,” he said. “Arguably, we have a two-year supply, and yet we have sold about 60-70% of what we started with in a five-month period. So we’ve been pretty aggressive in trying to make deals and get things done. But these last deals, they’re hard. They’re going to need a lot of renovations and rehabilitation.”

The Finlandia Foundation has agreed to purchase multiple buildings, including the Finnish American Heritage Center and North Wind Books.

O’Keefe has also reached a purchase agreement with the City of Hancock on Quincy Green subject to council approval next month, O’Keefe said. O’Keefe is also in talks with the city on Ryan Street, where the city is raising funds to help preserve the community garden. O’Keefe credited City Manager Mary Babcock with being “extremely helpful” in the negotiations.

The Finlandia Hall property will be used for multi-family residential housing, O’Keefe said. The Hoover Building, for which an offer had been signed Thursday afternoon, will be also be used for housing in some form, possibly including short-term rentals, he said.

An offer had also been signed for Finlandia University’s chapel Thursday.