A few people stood in the rain outside the Washington County Courthouse for a foreclosure auction on Phase I of the Cortland Manor Apartments. The auction was canceled because the owner of the property reached an agreement with the bank. (By Kevin G. Gilbert, Staff Photographer) |
The scheduled foreclosure auction on Phase I of the Cortland Manor Apartments in Hagerstown was canceled Tuesday, according to the owner of the development.
"As far as the foreclosure, it's canceled because we reached an agreement with the bank," said Ben Shaool, of Ben Shaool Management Inc.. "Right now, with all our loans, we're in good standing with all our banks."
A few people, some of whom said they were there only to watch, stood in the rain outside the Washington County Courthouse for the 11 a.m. auction, but the appointed time came and went.
Dawn Gordon of American National Properties said she was there on behalf of a potential buyer, Bogdan Builders of Bethesda, Md. A letter of intent for Bogdan to purchase both phases of Cortland Manor was being considered by "all parties," she said.
"They sent me an e-mail. I don't know anything about them, but I'd like to meet them," Shaool said of Bogdan.
"If any offers come in we'd be happy to look," Shaool said when asked about selling Cortland. A New York firm was interested in buying it before the recession hit a few years ago, he said.
Washington County Circuit Court records listed Cortpark II LLC and Cortpark Development LLC as the defendants in the foreclosure action. The limited liability companies were formed to develop the project, Shaool said.
The promissory note on Phase I is held by German American Capital Corp., according to court documents. The auction notice stated that Cortpark II LLC defaulted on the terms of a 2008 loan.
The auction Tuesday would have been for the 18 buildings and 216 apartments of Phase I, Bogdan Vice President Matt Scorzafava said. His company is interested in buying the entire development, he said.
The complex of 36 buildings has more than 400 units, Gordon said. Details of Bogdan Builders' letter of intent were confidential, she said.
A statement of the debt due under the terms of the note for Phase I stated that more than $21.8 million was owed as of Sept. 19, 2010, court records said.
If Bogdan acquires Cortland, Scorzafava said it will upgrade the development, implement a new marketing plan and bring in a new management team.
Bogdan is a real estate development company that has built townhouses, condominiums and single-family subdivisions and owns apartment complexes in several states, he said.
These have been difficult years for renters and rental property owners, Shaool said. Nevertheless, with stricter standards for home loans, he predicted that "rentals are the key properties for the next five to 10 years."
"Cortland is a beautiful subdivision. We worked very hard to build it up," Shaool said.
"As far as the foreclosure, it's canceled because we reached an agreement with the bank," said Ben Shaool, of Ben Shaool Management Inc.. "Right now, with all our loans, we're in good standing with all our banks."
A few people, some of whom said they were there only to watch, stood in the rain outside the Washington County Courthouse for the 11 a.m. auction, but the appointed time came and went.
Dawn Gordon of American National Properties said she was there on behalf of a potential buyer, Bogdan Builders of Bethesda, Md. A letter of intent for Bogdan to purchase both phases of Cortland Manor was being considered by "all parties," she said.
"They sent me an e-mail. I don't know anything about them, but I'd like to meet them," Shaool said of Bogdan.
"If any offers come in we'd be happy to look," Shaool said when asked about selling Cortland. A New York firm was interested in buying it before the recession hit a few years ago, he said.
Washington County Circuit Court records listed Cortpark II LLC and Cortpark Development LLC as the defendants in the foreclosure action. The limited liability companies were formed to develop the project, Shaool said.
The promissory note on Phase I is held by German American Capital Corp., according to court documents. The auction notice stated that Cortpark II LLC defaulted on the terms of a 2008 loan.
The auction Tuesday would have been for the 18 buildings and 216 apartments of Phase I, Bogdan Vice President Matt Scorzafava said. His company is interested in buying the entire development, he said.
The complex of 36 buildings has more than 400 units, Gordon said. Details of Bogdan Builders' letter of intent were confidential, she said.
A statement of the debt due under the terms of the note for Phase I stated that more than $21.8 million was owed as of Sept. 19, 2010, court records said.
If Bogdan acquires Cortland, Scorzafava said it will upgrade the development, implement a new marketing plan and bring in a new management team.
Bogdan is a real estate development company that has built townhouses, condominiums and single-family subdivisions and owns apartment complexes in several states, he said.
These have been difficult years for renters and rental property owners, Shaool said. Nevertheless, with stricter standards for home loans, he predicted that "rentals are the key properties for the next five to 10 years."
"Cortland is a beautiful subdivision. We worked very hard to build it up," Shaool said.
