Legacy in Limbo During Foreclosure

by Northwest Arkansas Business Journal Staff  on Monday, Apr. 7, 2008 12:00 am  

Court-appointed receiver Wayne Swofford has his work cut out at the 37-condo Legacy Building in downtown Fayetteville. Legacy National Bank of Springdale foreclosed on two loans for the property totaling $18.1 million on Jan. 2.

According to his report on the property filed March 13, Swofford found:

  • A minimum of $10,000 per month will be needed to keep the building operational;
  • Three units are currently occupied by tenants paying neither rent nor property owners association dues; and
  • Developer Brandon Barber owes his company, Lynnkohn LLC, more than $92,000 in POA dues for the unsold condos.

Among other problems with the property, Swofford noted that the electrical system needs work and that Barber has not fulfilled his commitment to the city of Fayetteville to replace a trash compactor removed during construction in exchange for a 20-foot "no-build" easement around the Legacy.

Swofford estimates adding the compactor will cost $50,000 to $70,000. He found that all the units run off a single electric meter and the building is "infamous" for running through light bulbs because the electrical load was designed for 100 percent occupancy.

Swofford found no contract documenting the terms for East Meets West Spa & Salon occupying Unit 702, an arrangement Barber made with owner Helena Gadison after he failed to meet his deadlines to complete her building at the Bellafont contruction project.

Gadison, who sued Barber on Nov. 20 over the Bellafont fiasco, countered Swofford's rent request of $1,000 per month for the 2,800-SF, two-story condo with an offer to pay $700 monthly until she opens her flagship location this fall at The Shoppes at the Bluff.

 

 

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