Posted 5/13/2013 12:00 am
Updated 11 months ago
Remember those three mortgages that The Broe Group of Denver purchased at year’s end from Metropolitan National Bank of Little Rock?
The Colorado investment firm recently foreclosed on one of the loans, secured by the 125-unit Holcombe Heights Apartments at 2100 Rebsamen Park Road.
Broe claims $4.84 million is owed and outstanding on the loan, which matured on Jan. 15.
The debt on the 6-acre development is guaranteed by the Bess McFadden Sanders Family Trust.
The other three defendants are listed as the loan recipients: Sanders individually, the Bess M. Sanders Living Trust and McFadden One LLC, led by Sanders. Other members of the ownership group are Todd and Chris Bridges, sons of Metropolitan CEO Lunsford Bridges.
The original project loan totaled $5.1 million in 2007 when the property was bought by McFadden One for $6.4 million with the idea of converting it to condominiums.
However, that plan wasn’t executed, and Holcombe Heights remained as an apartment complex.
The complaint alleges the value of the property isn’t sufficient to cover the debt. Broe asked the court to order all money and property to be turned over and a receiver be appointed.
Broe affiliates also bought loans secured by the 20-story River Market Tower in downtown Little Rock and the 20-acre Riverbend town home project in North Little Rock.
You might recall The Broe Group described the transaction as an undisclosed cash purchase of an $80 million portfolio of non-performing loans and real estate.
Other Arkansas assets in the deal included direct buys of Fayetteville’s Legacy Building for nearly $4.3 million, and 223 undeveloped acres and 17 lots in Maumelle’s Riverview residential development for $3.7 million.
The Legacy project is linked with the indictment of its developer, Brandon Barber, on charges of loan fraud and more.
A group of banks recovered the project in November 2008 at an $11.2 million foreclosure sale.
Broe acquired 31 condominiums and some commercial space on the ground floor of the six-story Legacy project from three lenders: Metropolitan National, 47.3 percent; First National Bank of Fort Smith, 35.3 percent; and First National Bank of Green Forest, 17.4 percent.