Metro Foreclosure
by June 1, 2009 12:00 am 117 views
Developers John Nock, Brandon Barber and Hank Broyles are facing a foreclosure on their condominium and loft project near West Avenue and Spring Street in downtown Fayetteville.
ANB Venture filed a foreclosure suit against Metro District Partners and the Bank of Fayetteville on April 24.
The suit, filed in Washington County Circuit Court, claims a mortgage valued at $13.09 million is secured by 26 condominiums and 25 lofts, known as the Metro District and the Spring Street Lofts.
The suit claims Metro District failed to pay the outstanding balance on the note plus interest when it was due on August 10, 2009.
As of April 20, the suit claims, Metro District owes ANB Venture $13.87 million with interest accruing at $5,949 per day.
The suit is seeking a foreclosure on the property with proceeds of the sale going to ANB and then to The Bank of Fayetteville.
According to the suit, The Bank of Fayetteville also extended credit to Metro District in the amount of $1.87 million, secured with a second mortgage on the same property.
Since BOF holds a second mortgage on the property, it is entitled to claim an interest in the property.
The Bank of Fayetteville did just that on May 26, filing a counterclaim against ANB Venture, Metro District Partners, Brandon Barber, John Nock and Hank Broyles. ANB is listed as a defendant because it holds a first mortgage lien against the property.
The bank claims it loaned $1.87 million to the Metro District, Barber, Nock and Broyles to finance their interest payment to ANB and the remaining construction costs associated with the development of the Spring Street Lofts.
According to the suit, the developers were required to make monthly interest payments to the bank by the 10th of each month.
The suit claims the developers failed to make the monthly payments to the bank in April and May.
The bank claims the developers owe $1.71 million plus daily interest in the amount of $408.35 per day from May 26 until the date of the judgment.