Details for Jefferson House APTS (101 Unit Project)

Updated

Jefferson House Apartments (101 Unit Project) 1818 Langhorne Square, City of Lynchburg, VA Tax Identification No. 001-25-003 In execution of a certain Virginia Housing Development Authority Revised Deed of Trust, Multi-Family Housing Development from Jefferson Housing LP, a Maine limited partnership (the "Borrower") to J. Judson McKellar, Jr. and Donald L. Ritenour, Trustees, dated March 31, 2005, recorded in the Clerk's Office of the Circuit Court of the City of Lynchburg, Virginia (the "Clerk's Office") on April 1, 2005 as Instrument No. 050002935 (the "Deed of Trust"), default having been made in the payment of the debt thereby secured, and being required to do so by the holder of the Note secured by the Deed of Trust (the "Noteholder"), the undersigned Substitute Trustees, either of whom may act, will offer for sale at public auction, on the Monument Terrace Steps at the front entrance of the Lynchburg Circuit Court Courthouse, located at 900 Court Street, Lynchburg, VA 24504 on Monday, July 29, 2019, at 10:00 a.m. (the "Date of Sale"), the Property (as defined in the Deed of Trust) consisting of a 101 unit project, situated on approximately 2.333 acres of land and all other rights, easements and appurtenances benefiting and\or burdening the Property (collectively, the "Real Estate"), and together with all of the Substitute Trustee's right, title and interest in and to, at the direction of the Noteholder (as hereinafter defined), all fixtures and items of personal property described in the Deed of Trust (collectively, the "Personal Property"); provided, however, that fixtures and other personal property of any tenants-in-possession are not included in this sale except to the extent of the Borrower's interest therein. The Real Estate and the Personal Property are hereinafter referred to collectively as the "Property". While the foregoing description of the Property is believed to be correct, no representation or warranty is made as to the accuracy or completeness of the physical description of the improvements contained thereon, the number and type of units at the Property or the total acreage of the land. The sale of the Property shall be made subject to all existing superior liens, easements and restrictive covenants, if any, as the same may lawfully affect the applicable Property, including, but not limited to, the 236(e)(2) Use Agreement dated March 31, 2005, and recorded in the Clerk's Office as Instrument No. 050002933 and the Extended Use Regulatory Agreement and Declaration of Restrictive Covenants dated January 6, 2005, and recorded in the Clerk's Office as Instrument No. 050002934. The sale of the Property shall be subject to the restriction that no person who is or was an obligor under the above referenced deed of trust nor any related person (as defined in U.S. Treasury Regulation ยง 1.103-10(e)) shall obtain an ownership interest in the development for tax purposes prior to January 31, 2021. Such restriction is required by VHDA for the purpose of complying with the requirements in federal law and regulations governing the federal tax exemption of the interest on VHDA's bonds issued to finance the development. The deed shall contain a covenant by the purchaser to comply with such restriction and shall also include a covenant by the purchaser to give at least 30 days' prior written notice to VHDA of any of the following events occurring prior to January 31, 2021 and to obtain VHDA's prior written determination that such event complies with the above described restriction: (i) any conveyance, assignment, encumbrance, transfer or other disposition, whether voluntary or involuntary, of all or any part of its interest in the Property or any portion thereof; (ii) any merger of the purchaser with any other entity, (iii) any acquisition of the purchaser or of all or substantially all of its assets, (iv) any dissolution or other termination of the purchaser, or (v) any other conveyance, assignment, encumbrance, transfer or other disposition, whether voluntary or involuntary, of all or any part of the interest of any partner, shareholder, member or other owner of any interest in the purchaser or in any entity having any direct or indirect interest in the purchaser. The above described covenants in the Deed shall run with the land and shall be binding on any and all successors in interest, and the deed shall provide that, in the event of any violation of such covenant, VHDA shall have the exclusive right to enforce such covenant and shall be entitled to specific performance of such covenant and such other legal and equitable remedies and relief as may be appropriate. Terms: ALL CASH except that, subject to the requirements of Section 55-59.4 of the Code of Virginia, 1950, as amended, the holder of the note secured by the Deed of Trust, as the same have been amended (the "Noteholder"), shall be entitled to apply any of the debt secured by the Deed of Trust as a credit to the successful bid for the Property (the "Sales Price"). To participate in the bidding, a deposit in the amount of $193,000.00 (the "Deposit"), in cash or a certified or cashier's check payable (or endorsed) to the Substitute Trustee, will be required at the Date of Sale. The balance of the Sales Price shall be paid in wired funds at settlement, to be held no later than twenty-one (21) days after the Date of Sale at the office of the Substitute Trustees (the "Date of Settlement"), time being of the ESSENCE. To those who provided the Deposit to the Substitute Trustee but were not the successful bidder, the Substitute Trustee will return such Deposit promptly after completion of the bidding. The Substitute Trustee reserves the unilateral right, among other rights reserved to the Substitute Trustee as provided in a Memorandum of Sale and Deposit Receipt (the "Memo of Sale") further described below, to waive the Deposit required to participate in the auction as to any registered bidder or to cancel the sale at any time. All closing costs, other than preparation of the deed (which shall be paid out of the proceeds of sale), shall be borne by the successful bidder, including the grantor's tax on the deed (unless the Noteholder is the successful bidder). Real estate taxes shall be prorated to the Date of Sale and the successful bidder will also be obligated to add to its successful bid amount any real estate taxes that have been paid for the period from the Date of Sale through the end of the calendar or fiscal year, as applicable. The Real Property shall be conveyed by special warranty deed and the Personal Property shall be conveyed by bill of sale, without warranty. The risk of loss or damage to the Property by condemnation, fire or other casualty shall be borne by the successful bidder from the acceptance of the Deposit on the Date of Sale. Delivery of physical possession of the Property will not be performed by the Substitute Trustee but will be the responsibility of the successful bidder. The successful bidder will be deemed to have accepted (and required to execute) a Memo of Sale concerning the purchase of the Property, a copy of which will be made available for review upon request to the information contact person below or immediately before announcing the sale of the Property on the Date of Sale. Bidders should be sure to request and review a copy of the Memo of Sale which contains additional terms and conditions of the sale and important disclaimers, which terms, conditions and disclaimers are incorporated into this Advertisement as if fully set forth herein. The Substitute Trustees were substituted by Deed of Appointment of Substitute Trustees dated June 20, 2019, and recorded in the Clerk's Office on June 25, 2019, as Instrument No. 190003652. Purchase money financing may be available from VHDA to successful bidders. Please contact the information contact person named below for the name of a contact person at VHDA to pursue any potential financing opportunity. David L. Lingerfelt, Esq. Substitute Trustee c/o Vertical Vision PLC P. O. Box 207 Manakin Sabot, VA 23103 Telephone: (804) 514-1111 FOR INFORMATION CONTACT: Mark D. Williamson, Esquire McGuireWoods LLP World Trade Center 101 West Main Street, Suite 9000 Norfolk, Virginia 23510 Telephone Number: (757) 640-3713

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