On August 23, 2024, the Receiver filed his Motion for “Show Cause” Hearing, Sanctions, Injunctive Relief, and Brief in Support regarding Barton’s continued interference with the Receivership. A copy of the motion is available here.
On July 30, 2024, the Receiver filed his status report for the Second Quarter of 2024. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is October 30, 2024.
On July 29, 2024, the Receiver filed his amicus brief in support of continuation of the receivership with the Fifth Circuit. A copy of the amicus brief can be accessed here.
On June 27, 2024, the Court set a hearing to consider approval of the sales of Amerigold Suites and the Hall Street Property for July 23, 2024 at 10:00am, at the United States District Courthouse, Courtroom 1525, 1100 Commerce St., Dallas, TX 75242-1310. The Receiver will also post notice of the sale by publication. Pursuant to 28 USC § 2001, any bona fide offers that guarantee at least 10% over the $4,800,000 sales price for the Amerigold Suites and $6,000,000 sales price for the Hall Street Property must be sent to the Receiver prior to the hearing date. A copy of the Amerigold Suites’ Motion is available here and the Hall Street Property Motion is available here.
On June 5, 2024, the Receiver filed his Motion for Appointment of Appraisers, Approval of Appraisals and a Hearing Regarding Approval of Sale of Amerigold Suites and his Motion for Appointment of Appraisers, Approval of Appraisals and a Hearing Regarding Approval of Sale of Hall Street. In connection with his appointment, the Receiver took control of the assets of Goldmark Hospitality, LLC, which owns a 70 unit extended-stay hotel in Dallas, Texas (the “Amerigold Suites”) and TC Hall, LLC which owns approximately a half-acre of unimproved property located at 3407 and 3409 Hall Street in Dallas, Texas.
Amerigold Suites
On June 3, 2024, the Receiver contracted to sell the Amerigold Suites for $4,800,000. Pursuant to 28 U.S.C. § 2001 (the “Statute”), the Receiver obtained two appraisals and one broker’s opinions of value, which indicate that the average appraised value of the property is approximately $5,546,667. The Receiver believes that the sales price of $4,800,000, which exceeds the two-thirds of the average appraised value ($3.7 million) as required by the Statute, is in the best interest of the Receivership. After accounting for various loans and liens on this property, the Receiver estimates the sale resulting in a net benefit of approximately $1.8 million to the Receivership Estate. A copy of the Motion is available here, as well as the Appendix in support here.
Twice before, the Receiver received Court approved to sell this property for $5.5 million. But due to repeated appeals by Defendant Barton, the title company would not close on the sale, and ultimately, the previous buyer walked away from purchasing the property because of the continued uncertainty surrounding the transaction and what it believed was a much more buyer friendly market. While the previous purchaser’s sense of a shifting market in favor of buyers is proving correct—leading to a lower sales price this time compared to the prior sale—the continued costs of managing the property, including interest accruing at $13,000 per month and property tax and insurance bills totaling over $100,000 per year, and the ever present possibility of another personal injury (two of which have already occurred) reinforced the Receiver’s belief that selling the Amerigold Suites now, as opposed to speculating on the real estate market which is not a receiver’s job, is in the best interest of the Receivership Estate.
Hall Street
On May 30, 2024, the Receiver contracted to sell the Hall Street Property for $6,000,000. Pursuant to the Statute, the Receiver obtained two appraisals and one broker’s opinions of value, which indicate that the average appraised value of the property is approximately $5,136,421. The Receiver believes that the sales price of $6,000,000, which not only greatly exceeds two-thirds of the average appraised value ($3.4 million) as required by the Statute and also exceeds the average appraised value by nearly $1 million, is in the best interest of the Receivership. After accounting for various loans and liens on this property, the Receiver estimates the sale resulting in a net benefit of approximately $976,496 to the Receivership Estate. A copy of the Motion is available here, as well as the Appendix in support here.
On April 30, 2024, the Receiver filed his status report for the First Quarter of 2024. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is July 30, 2024.
On January 30, 2024, the Receiver filed his status report for the Fourth Quarter of 2023. A copy of the Report may be viewed here. The deadline for the Receiver to file his next report is April 30, 2024.
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