The Parachute Factory, an apartment redevelopment project by Billy Jefferson and Justin French, has been handed off to a lender. Photo by Katie Demeria.
In its third attempt at foreclosure this year, a national lender has finally taken possession of the last substantial piece of imprisoned local developer Billy G. Jefferson’s holdings.
The 95-unit Parachute Factory apartment complex at 300 Decatur St. was auctioned off on Thursday on the steps of Richmond Circuit Court. U.S. Bank, the noteholder of the development, took the property back after no other bidders made an offer.
Originally built in 1937, the Parachute Factory was renovated by Jefferson and fellow notorious Richmond developer Justin French using historic tax credits in 2006. Both men are now serving lengthy federal prison sentences for tax credit scams.
The auction of the Manchester complex was spurred by a Jefferson-controlled entity defaulting two years ago on a $15.2 million loan secured by the property.
U.S. Bank’s $6.6 million opening offer was the only bid at Thursday’s auction. Both the U.S. Bank representative that made the bid and the trustee handling the auction, Russell Drazin of Washington, D.C.-based law firm Pardo Drazin, refused to comment.
The lender, which was burned by Jefferson on several other large loans in Richmond, scheduled auctions on the Parachute Factory two other times this year, but both were cancelled.
The bank had also pushed for the foreclosure of Jefferson’s River City Renaissance portfolios and the Tobacco Factory Lofts, which was also a Jefferson-French collaboration. Those properties have all since been sold.
Wachovia was the original lender on the Parachute Factory loan, which has a $13.6 million balance, according to a report by real estate tracking firm Trepp. CompassRock Real Estate is the property’s court-appointed manager.
The Parachute Factory was most recently assessed at $10.03 million, according to city records. That’s down from its 2014 assessed value of $13.8 million.
The apartment complex is located in a booming Manchester district, where nonstop development works to draw in more residents and amenities.
Tom Papa’s Miller Lofts was just completed this spring as the developer considers constructing two 16-story towers along the riverfront. Work is wrapping up at Larson Development’s Plant 1, Thalhimer Realty Partners is trying to lure a grocery store to its Reynolds South development and a group is trying to create what it envisions as a Carytown for Manchester.
The few remaining pieces of real estate owned by Jefferson in the neighborhood may be headed for the auction block next. True North, which owns the Tobacco Factory Lofts, is pushing the court to force the sale of several small Jefferson-owned lots sprinkled around the apartment complex.
The Parachute Factory, an apartment redevelopment project by Billy Jefferson and Justin French, has been handed off to a lender. Photo by Katie Demeria.
In its third attempt at foreclosure this year, a national lender has finally taken possession of the last substantial piece of imprisoned local developer Billy G. Jefferson’s holdings.
The 95-unit Parachute Factory apartment complex at 300 Decatur St. was auctioned off on Thursday on the steps of Richmond Circuit Court. U.S. Bank, the noteholder of the development, took the property back after no other bidders made an offer.
Originally built in 1937, the Parachute Factory was renovated by Jefferson and fellow notorious Richmond developer Justin French using historic tax credits in 2006. Both men are now serving lengthy federal prison sentences for tax credit scams.
The auction of the Manchester complex was spurred by a Jefferson-controlled entity defaulting two years ago on a $15.2 million loan secured by the property.
U.S. Bank’s $6.6 million opening offer was the only bid at Thursday’s auction. Both the U.S. Bank representative that made the bid and the trustee handling the auction, Russell Drazin of Washington, D.C.-based law firm Pardo Drazin, refused to comment.
The lender, which was burned by Jefferson on several other large loans in Richmond, scheduled auctions on the Parachute Factory two other times this year, but both were cancelled.
The bank had also pushed for the foreclosure of Jefferson’s River City Renaissance portfolios and the Tobacco Factory Lofts, which was also a Jefferson-French collaboration. Those properties have all since been sold.
Wachovia was the original lender on the Parachute Factory loan, which has a $13.6 million balance, according to a report by real estate tracking firm Trepp. CompassRock Real Estate is the property’s court-appointed manager.
The Parachute Factory was most recently assessed at $10.03 million, according to city records. That’s down from its 2014 assessed value of $13.8 million.
The apartment complex is located in a booming Manchester district, where nonstop development works to draw in more residents and amenities.
Tom Papa’s Miller Lofts was just completed this spring as the developer considers constructing two 16-story towers along the riverfront. Work is wrapping up at Larson Development’s Plant 1, Thalhimer Realty Partners is trying to lure a grocery store to its Reynolds South development and a group is trying to create what it envisions as a Carytown for Manchester.
The few remaining pieces of real estate owned by Jefferson in the neighborhood may be headed for the auction block next. True North, which owns the Tobacco Factory Lofts, is pushing the court to force the sale of several small Jefferson-owned lots sprinkled around the apartment complex.