A California-based private capital fund has filed to foreclose on the former Hawaii Raceway Park in Kapolei.

MKA Real Estate Qualified Fund I LLC filed the lawsuit Thursday in state Circuit Court claiming that HMC Irongate Hawaii Raceway Investors LLC defaulted on a $17.6 million loan issued in November 2005 to acquire and redevelop the 65.8-acre parcel into an industrial park.

HMC Irongate representatives couldn't be reached for comment yesterday.

The island's only raceway park just outside of Campbell Industrial Park closed in 2006 after the owner declined to renew the lease. Since then, individuals and groups have been searching for a replacement site to no avail.

The City Council approved last year a bill to rezone the former raceway park to industrial land, eliminating the possibility of reopening the racetrack. HMC Irongate, an entity created by Irongate Development of Los Angeles to redevelop the property, has been marketing the site since July for $25 million, according to broker Matthew Bittick, senior vice president of investment sales and leasing at PM Realty Group.

Irongate, which also is developing the 38-story Trump International Hotel & Tower Waikiki Beach Walk, planned to build about 90 lots at the industrial site and sell them to end users and investors, according to its Web site.

Plaintiff's attorney Neil Verbrugge didn't comment on why HMC Irongate hasn't been able to make payments required under the loan, whose maturity date had been extended to Nov. 30. HMC Irongate purchased the site in 2006 from James Campbell Estate.

HMC Irongate also took out an $11.75 million loan from Fremont Investment & Loan - since acquired by iStar FM Loans LLC - the senior lender on the property, in addition to the MKA loan, which is secured by the former racetrack site, according to the complaint. MKA holds the second position mortgage.

As of Sept. 30, HMC is in default on the principal balance of $10 million, interest and fees of $1.9 million and monthly fees of $757,328, bringing the total to nearly $12.7 million, not including attorneys' fees and other costs.