Regions Forecloses on Valley Heights and Arrington Apartments

by Arkansas Business Staff  on Monday, Oct. 22, 2012 12:00 am  

Looks like the Henry Management Inc. chapter of Little Rock's blighted Valley Heights Apartments is coming to a close.

Regions Bank of Birmingham, Ala., filed a foreclosure suit and is seeking a court-appointed receiver for the 198-unit, low-income apartment complex at 6900 Cantrell Road.

In case you forgot, the city of Little Rock sued Valley Heights in June for disrupting surrounding neighborhoods and blamed Henry Management for not paying attention.

The city sought to shut down the apartments and evict its residents if the situation didn't change. Henry Management claimed ignorance of alleged crimes taking place in the apartments and the surrounding neighborhood.

The apartments secured a March 2007 mortgage of $4.4 million. According to the foreclosure suit, Henry Management defaulted after failing to pay a $43,441.58 letter of credit fee.

The suit said $4.35 million in principal was still owed, plus $11,388.55 in interest. And as of Sept. 30, default interest continues to accrue at a rate of $392.71 per day.

When it Rains...

Regions also filed a foreclosure suit against Henry Management in connection with its 120-unit Arrington Apartments 6301 Camp Robinson Road in North Little Rock.

Those apartments are tied to a February 2007 mortgage of $1.5 million. A note delivered by the apartment managers in 2009 promised that all indebtedness would be paid by Jan. 31, 2012.

According to the suit, Henry defaulted on the note as well as a letter of credit extension from 2010. The suit stated that Henry still owed $1.47 million in principal and $32,094.35 in interest on the apartments.

There was also $60,028.38 in missed payments from the credit extension, a $645,600 early termination fee and another $4,571.96 in interest.

Regions is requesting a receiver for Arrington Apartments, too.

Regions also sued Henry Management in September for allegedly mismanaging another apartment building, St. John's Apartments, in southwest Little Rock.

Calls to Henry Management seeking comment were not returned.

 

 

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