Utah Properties Subject of One Bank & Trust Lawsuit

by Arkansas Business Staff  on Monday, Jul. 1, 2013 12:00 am  

The Founders Ridge manor controlled by Phil Herrington is part of a foreclosure lawsuit filed by One Bank & Trust of Little Rock.

Have you heard about a failed upscale residential project out West that is causing ripples back here in Arkansas?

One Bank & Trust of Little Rock launched foreclosure litigation in connection with a $5 million loan backing a five-lot project in Utah.

The bank is suing Little Rock businessman Phil Herrington, his Herrington Inc. private equity and development firm and six business entities associated with the property.

As the crow flies, the property on East Ridge Road is less than a mile south from the heart of the Sundance Mountain Resort.

The loan dates back to April 2006 and has an outstanding balance of $4.7 million, according to the complaint. Herrington personally guaranteed the debt, according to the lawsuit.

Four of the 1-acre lots are undeveloped, and the fifth contains a 4,133-SF alpine manor built in 2008. The four-bedroom abode, which includes a 1,100-SF basement, is valued at $2 million on the tax rolls.

Three of the lots are on the books at $750,000 each. The fourth, a 1.5-acre lot, is valued at $800,000. Unpaid real estate taxes date back to 2010 and add up to more than $200,000.

Michael Heald, then-executive vice president at One Bank, signed off on the loan. After exiting the bank in 2011, Heald went on to become chief operating officer for Herrington Inc.

 

 

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