Billy G. Jefferson Jr. partnered with Justin French to rehab the Tobacco Factory at 700 Stockton St. (Photo by Michael Schwartz)
Local developer Billy G. Jefferson Jr. says he should not personally be on the hook for a $25 million loan owed on one of his Manchester apartment complexes.
The imprisoned developer on Wednesday asked the federal court to throw out a civil suit filed in March by major lender U.S. Bank. The bank argues that Jefferson personally guaranteed a now defaulted loan on the 225-unit Tobacco Factory, which he developed with Justin French.
The bank also claims Jefferson lied about the profitability of the property and wants a judgment of $27 million judgment against the once-prominent landlord, including principal, interest and late fees on the loan. U.S. Bank alleged that Jefferson claimed to be receiving $1,000 and $1,250 in monthly rent for units, when in fact rates were significantly lower.
Jefferson, in his response, denied lying about the rental rates collected at the Tobacco Factory when borrowing the money and denied many of the bank’s other allegations.
Jefferson further responded that U.S. Bank has effective control over the collection of all rents from the Tobacco Factory and proceeds from a potential sale of the property. His defense states that “at present, there is no way to determine what, if any, amount of damages have been sustained by the Plaintiff.”
The Tobacco Factory is being managed by Cushman & Wakefield | Thalhimer, which took over the building as a receiver in January, pending a foreclosure that is in the works. The building is about 72 percent leased.
U.S. Bank previously won a nearly $27 million judgment against TABAC LC, a Jefferson-owned business entity that holds the Tobacco Factory property. Judgments do not guarantee that the money will be collected.
Jefferson is in jail awaiting federal sentencing on a pair of felonies related to tax credit fraud. His sentencing date is set for May 9, and he could soon face additional charges.
Billy G. Jefferson Jr. partnered with Justin French to rehab the Tobacco Factory at 700 Stockton St. (Photo by Michael Schwartz)
Local developer Billy G. Jefferson Jr. says he should not personally be on the hook for a $25 million loan owed on one of his Manchester apartment complexes.
The imprisoned developer on Wednesday asked the federal court to throw out a civil suit filed in March by major lender U.S. Bank. The bank argues that Jefferson personally guaranteed a now defaulted loan on the 225-unit Tobacco Factory, which he developed with Justin French.
The bank also claims Jefferson lied about the profitability of the property and wants a judgment of $27 million judgment against the once-prominent landlord, including principal, interest and late fees on the loan. U.S. Bank alleged that Jefferson claimed to be receiving $1,000 and $1,250 in monthly rent for units, when in fact rates were significantly lower.
Jefferson, in his response, denied lying about the rental rates collected at the Tobacco Factory when borrowing the money and denied many of the bank’s other allegations.
Jefferson further responded that U.S. Bank has effective control over the collection of all rents from the Tobacco Factory and proceeds from a potential sale of the property. His defense states that “at present, there is no way to determine what, if any, amount of damages have been sustained by the Plaintiff.”
The Tobacco Factory is being managed by Cushman & Wakefield | Thalhimer, which took over the building as a receiver in January, pending a foreclosure that is in the works. The building is about 72 percent leased.
U.S. Bank previously won a nearly $27 million judgment against TABAC LC, a Jefferson-owned business entity that holds the Tobacco Factory property. Judgments do not guarantee that the money will be collected.
Jefferson is in jail awaiting federal sentencing on a pair of felonies related to tax credit fraud. His sentencing date is set for May 9, and he could soon face additional charges.