FDIC marketing sale of Branson's Grand Palace

After holding the loan since 2008 and foreclosing on the property in 2011, the Federal Deposit Insurance Corp. is actively marketing the sale of Branson's vacant Grand Palace.

The asking price for the 13-acre site built in 1992 is $5.4 million, according to the FDIC's listing with Los Angeles-based commercial real estate firm Colliers International.

The FDIC became trustee of the Grand Palace in 2008 after note holder Columbian Bank and Trust Co., in Topeka, Kan., failed and closed. The FDIC was named receiver of the bank, which included the note on the Branson theater.

The FDIC foreclosed on the note June 29, 2011, the day Tennessee-based Kingdom Wealth Builders LLC agreed to purchase the property for $5.5 million, about half of its $10 million asking price. FDIC spokesman Greg Hernandez said the third party who bid at the sale was unable to pay the sale price, leading to the foreclosure.

The marketing efforts of the FDIC also were stymied by legal issues surrounding the Branson property. Former property manager Paul Dunn, who leased the facility, claimed the FDIC knowingly allowed him to pay the initial cost of repairs on the facility and then grabbed the insurance money, which he claimed was supposed to go to him, according to a Branson Tri-Lakes News report. However, a federal judge in late 2012 dismissed Dunn's claims against the FDIC.

"The FDIC temporarily reduced its marketing efforts until legal issues were resolved that effectively blocked the potential sale of the Grand Palace," Hernandez said.

He said bids for the Grand Palace are due by June 2. It is being marketing locally by Karen Best of Keller Williams Realty.

Reporter Brian Brown contributed to this article.