Chamberlayne Gardens’ units total about 140,000 square feet. (Photo by Michael Schwartz)
After being foreclosed on last week, a large Northside apartment complex remains at the center of an ongoing federal lawsuit.
The onetime owner of the 216-unit Chamberlayne Gardens apartment complex and the head of a real estate firm are battling lending giant Fannie Mae, which sued seeking $10 million after a loan on the property went into default.
The suit was filed in November against CG Bellkor LLC, which until last week owned the property. Also named as a defendant is Jonathan Bell, head of real estate firm OHI. Federal court documents show that Bell was managing member of Bellkor and personally guaranteed the loan on the property.
A foreclosure auction for the property, which covers about 11 acres running parallel with Chamberlayne Avenue and Old Brook Road between Westminster Avenue and Watkins Street, was May 30 on the steps of the Richmond courthouse. The property went back to the lender for $5.5 million.
It’s unclear how the foreclosure might affect the outcome of the lawsuit. Attorneys on both sides would not comment on the case, now headed toward a trial set for September. According to court filings, Bell is to be deposed in Florida, where he and his wife live. His lawyers had argued in Bell’s response to the suit that no default had occurred that would trigger liability on his part.
Chamberlayne Gardens is controlled by a receiver who was appointed as a result of a separate legal dispute filed against Bell and his wife, Heather, by Ministri Family LLC. Ministri Family won a judgment in that case.
Kyle Stephenson of Richmond-based property management firm KRS Holdings was appointed receiver and manages and collects the rents at Chamberlayne Gardens, federal court filings show.
CG Bellkor purchased the property in 2006, city records show. The loan on the property was originally made in 2007 for $8.3 million.
Dewayne Lonas, an attorney representing CG Bellkor and Bell with Moran Reeves & Conn PC, would not comment on the case.
David Folds, an attorney representing Fannie Mae from McKenna Long & Aldridge in Washington, would not comment on the case, referring questions to Fannie Mae’s media relations department.
Hearings were held in the case this week in federal court in Richmond, including a closed-door meeting in attempt to discuss a settlement. Court filings show no settlement has yet been reached. An email to Bell regarding the settlement conference was not returned by press time.
Bell told BizSense last week that an insurance company that bought the tax credits on the Chamberlayne property was now behind the Bellkor LLC.
Chamberlayne Gardens’ units total about 140,000 square feet. (Photo by Michael Schwartz)
After being foreclosed on last week, a large Northside apartment complex remains at the center of an ongoing federal lawsuit.
The onetime owner of the 216-unit Chamberlayne Gardens apartment complex and the head of a real estate firm are battling lending giant Fannie Mae, which sued seeking $10 million after a loan on the property went into default.
The suit was filed in November against CG Bellkor LLC, which until last week owned the property. Also named as a defendant is Jonathan Bell, head of real estate firm OHI. Federal court documents show that Bell was managing member of Bellkor and personally guaranteed the loan on the property.
A foreclosure auction for the property, which covers about 11 acres running parallel with Chamberlayne Avenue and Old Brook Road between Westminster Avenue and Watkins Street, was May 30 on the steps of the Richmond courthouse. The property went back to the lender for $5.5 million.
It’s unclear how the foreclosure might affect the outcome of the lawsuit. Attorneys on both sides would not comment on the case, now headed toward a trial set for September. According to court filings, Bell is to be deposed in Florida, where he and his wife live. His lawyers had argued in Bell’s response to the suit that no default had occurred that would trigger liability on his part.
Chamberlayne Gardens is controlled by a receiver who was appointed as a result of a separate legal dispute filed against Bell and his wife, Heather, by Ministri Family LLC. Ministri Family won a judgment in that case.
Kyle Stephenson of Richmond-based property management firm KRS Holdings was appointed receiver and manages and collects the rents at Chamberlayne Gardens, federal court filings show.
CG Bellkor purchased the property in 2006, city records show. The loan on the property was originally made in 2007 for $8.3 million.
Dewayne Lonas, an attorney representing CG Bellkor and Bell with Moran Reeves & Conn PC, would not comment on the case.
David Folds, an attorney representing Fannie Mae from McKenna Long & Aldridge in Washington, would not comment on the case, referring questions to Fannie Mae’s media relations department.
Hearings were held in the case this week in federal court in Richmond, including a closed-door meeting in attempt to discuss a settlement. Court filings show no settlement has yet been reached. An email to Bell regarding the settlement conference was not returned by press time.
Bell told BizSense last week that an insurance company that bought the tax credits on the Chamberlayne property was now behind the Bellkor LLC.