A Clark County circuit judge recently appointed a receiver to manage a 32,526-SF shopping center in Arkadelphia for its owner, which allegedly is in default on a $2.4 million loan.
On May 16, the mortgage holder filed a foreclosure lawsuit against Walcent Arkadelphia AK LLC — yes, the LLC has the wrong state abbreviation for Arkansas — and ArciTerra Real Estate Investment Trust Inc. in Clark County Circuit Court.
The creditor, FSNB SUB 4 LLC, also asked for a receiver for the property at 112 WP Malone Drive.
FSNB SUB 4 said it is owed a total of $2.45 million as of May 5, according to its complaint, filed by its attorney, Grant E. Fortson of Lax Vaughan Fortson Rowe & Threet of Little Rock.
FSNB SUB 4 wanted the receiver to prevent the property from “being lost or materially injured.”
“Plaintiff has recently learned that tenants have been lost due to the physical deterioration of the Mortgaged Property, including roof leaks that have resulted in water entering leased premises in the shopping center and damaging tenant inventory,” according to FSNB SUB 4’s filing. “Tenants have also reported that they are unable to communicate with the Borrower as landlord.”
In a May 16 affidavit filed in the case, Keatrick Walker, who works for FSNB, said that when he recently visited the strip center “several of the tenant spaces were vacant, and notices were posted that the prior tenants had moved out of the Property.”
One of those businesses was GameStop.
Judge Blake Batson agreed with the creditor and appointed Distel Thiede Advisory Services LLC of Grand Rapids, Michigan, which operates at Amicus Management, as the receiver.
Whispers reached out to Jon Larmore, the CEO of ArciTerra Cos., as manager of the borrower, but he didn’t respond via email.
Larmore had sent an email to creditors on April 17 with a rambling subject line that included: “The Perfect Storm Sale | Loss of Father | Hurricane | Divorce |.”
In the email, which is attached as an exhibit to the filing, Larmore indicated he was selling all his properties or handing them over to creditors.
“I have realized over the past several months that the best path for me moving forward is to shed the baggage of my past and start fresh,” Larmore wrote.