Part of one of Woodstock's most prominent buildings has avoided sale through a "friendly foreclosure."

Instead of selling the retail floor of the six-story Woodstock Downtown building on the courthouse steps Tuesday, Republic Bank has opted to keep the space for its own asset portfolio.

The bank had advertised plans to foreclose on the 26,000-square-feet in the award-winning, mixed-use development by Hedgewood Properties at the intersection of Arnold Mill Road and Main Street. Bank officials would not comment on the space's value.

"Woodstock Downtown is a great project, and the change in ownership of the retail space should not change its long-term potential," said Scott Reed, president of Republic Bank, which does not own any similar properties.

The change will have no affect on existing tenants, who have been sent a letter assuring them it will be "business as usual."

The various buildings in Woodstock Downtown have multiple lenders, and the bank is not a lender on the condominiums built above the first-floor retail space it acquired.

In what Reed himself called "a little unusual" decision, the bank is retaining the existing development, leasing and management team from Hedgewood Commercial Properties.

"We felt that this partnership would benefit all concerned," he said. "As the new owner, we are certainly motivated to do whatever we can to maximize the value of the project, and we feel that continuity in management of the property is one of the steps we can take to assure its success."

Cheri Morris, CEO of Hedgewood Commercial Properties, said she views the arrangement as a "new, but very positive relationship."

"It has been a great team, and that team will continue to work together for the benefit of the project, as well as the retailers and restaurants that have made Woodstock Downtown their home," she said.

When completed, the 32-acre development will consist of 300 residences including houses, town homes and stacked flats, along with shops, restaurants services and executive office space.

Woodstock Downtown recently was honored with a Charter Award from the Congress for the New Urbanism. The international organization recognized the development for its excellence in architectural, landscape and urban design. The development also was named A Development of Excellence by the Atlanta Regional Commission.

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