Asset Deal of the Week: Ownership Interest in Property Management Co...

Posted by Michael on July 16, 2014

Most savvy buyers are always asking us for "hairy" deals. We thought it would be great to start showcasing some of the deals that come across the wire. Below is a snippet from the sale motion. You can read the entire sale motion for free and contact the trustee to learn more about this sale by clicking on the link below:

Ownership Interest in Property Management Company

Snippet from Sale Motion

Donald R. Lassman, the duly appointed chapter 7 trustee (the "Trustee") in the bankruptcy case of Douglas R. Meservey (the "Debtor"), hereby requests authority to sell by private sale ("Private Sale") all of the Debtor's twenty-four percent (24%) interest (the "Interest") in the Massachusetts limited liability company 3DM Properties LLC ("3DM Properties"), to Partnership Liquidity Investors, LLC, or its assignee (the "Purchaser"), for a sale price of $78,500 (the "Purchase Price"). The Purchaser has no relation to the Debtor or the Trustee. The terms of the Private Sale are set forth more particularly below. In further support of this Motion, the Trustee represents as follows:


On June 29, 2011 (the "Petition Date"), the Debtor filed a voluntary petition for relief under chapter 7 of title 11 of the United States Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the District of Massachusetts (Eastern Division). By order of the Court dated June 30, 2011, the Trustee was appointed as chapter 7 trustee in the Debtor's bankruptcy case and continues to serve in that capacity.

Since the Petition Date, the Trustee has investigated the assets and liabilities of the Debtor, and has determined that the Debtor is the holder of the Interest in 3DM Properties. The remaining interest holders are the Debtor's brother (24% interest) and father (52%). 3DM Properties, in turn, is the owner of several parcels of real property, including two commercial properties with tenants in Chatham, Massachusetts:

a. 11 Chicks Way, South Chatham, MA—This property is a 9,900-square- foot warehouse built in approximately 2007–08 on 1.06 acres of land, zoned industrial. The Trustee has obtained a broker's price opinion of value for this parcel of $1,160,000, subject to a mortgage in the amount of approximately $760,000 according to information provided by 3DM Properties; and

b. 146 Commerce Park South, South Chatham, MA—This property includes a 3,920-square-foot warehouse built in approximately 1983 on approximately 20,000 square feet of land, zoned industrial. The property also houses a cell tower, constructed in approximately 2007 and leased to Seacoast Tower Development, further sub-leased to two cell carriers, most likely AT&T and possibly T-Mobile. The Trustee has obtained a broker's price opinion of value for this parcel of $725,000, subject to a mortgage in the amount of approximately $253,000 according to information provided by 3DM Properties.

Valuation and lien amounts supplied are opinions of third parties and not the Trustee. The Trustee makes no representation about the accuracy of any information provided by 3DM Properties. The Trustee does not have any information regarding the value of the real property owned by 3DM Properties, or the amount, priority or validity of any of the claims asserted against such property. It is incumbent upon all interested parties to conduct their independent research regarding the property and related claims.

The Trustee has solicited offers to purchase the Interest. Although several offers were received, the Trustee submits that the offer from the Purchaser represents the highest and best offer for the Interest.

The Proposed Sale

Subject to Bankruptcy Court approval, the Trustee has agreed to sell the Interest to the Purchaser for the Purchase Price of $78,500. The following are the terms of the offer:

a. The Trustee will sell the Debtor's Interest to the Purchaser.

b. The Purchaser shall pay the Trustee Seventy Eight Thousand Five Hundred and 00/100 Dollars ($78,500.00) as total compensation for the Interest (the "Purchase Price").

c. Counsel to the Trustee is currently holding a deposit in the amount of twenty percent (20%) of the Purchase Price—i.e., $15,700.00—in escrow pending approval of the proposed sale.

d. The Interest shall be sold as-is, where-is with no warranties or representations by the Trustee of any kind. e. The Interest will be conveyed to the Purchaser free and clear of all liens, claims, encumbrances or other interests.

Lastly, in the event that the Interest is sold to any party other than the Purchaser, the Trustee is seeking approval of a breakup fee payable to the Purchaser in an amount equal to five percent (5%) of the Purchase Price; i.e., Three Thousand Nine Hundred Twenty Five and 00/100 Dollars ($3,925.00) (the "Breakup Fee").

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