This story by my colleague Laurence Hammack was published in today’s newspaper.
A bank that took possession of Keagy Village at a foreclosure auction has reached an agreement with the developers of the troubled shopping center.
As part of a settlement of a lawsuit against them, the developers of the Roanoke County complex agree they owe $5.8 million to TD Bank, according to documents filed this week in Roanoke’s federal court. Both sides are asking a judge to enter a consent judgment in that amount.
Since the lawsuit was filed, TD Bank sold Keagy Village to a North Carolina investor who hopes to find new tenants and breathe new life in the four-building center, which currently has just three tenants. In 2007, Carolina First Bank — which has since merged with TD Bank — agreed to finance a shopping center planned on a 15-acre site at Keagy Road and Virginia 419.
The bank loaned $10.87 million to Warehouses Inc., W.G. Indian Trail, Alan Kahn and Kahn Properties South, a division of Kahn Development.
By May 2011, the loan was three months delinquent and interest and late fees had pushed the amount due to $10.9 million, according to the lawsuit. The bank bought the property in 2012 at a foreclosure auction after placing the sole bid of $5.97 million.
It was not clear when — or if — the developers will be able to pay the $5.8 million they still owe under the loan. “Just because we have a judgment does not mean the money is forthcoming,” said Jason Hicks, a Charlottesville attorney who represents the bank.
Read the whole story here.