Tuesday, August 17, 2010

Landlord Builder Screws Ukrop's, Ukrops Screws Bank

IMD Investment group built the building for Ukrops and was their landlord. Ukrops rent is $73,333.75 a month. IMD had some unpaid costs on construction and delays in building the site.

Ukrops claims that this is the reason for their failure. They don't attribute their failure to higher prices than the Roanoke Market will bear or poor demographic research on their part. NO, It couldn't be us. It's the landlords fault because we're trying to squeeze out of what we owe. They sold their remaining stores earlier this year to Dutch based Royal Ahold.

Valley Bank, who funded IMD, ended up with the property at the court house steps so they are now the landlord. IMD made an arrangement with Ukrops that they owe Ukrops $5.6 million to the grocer. IMD has shorted the rent over the past couple of years and is now down to $4.9 million. Ukrops says Valley, taking the place of the previous IMD landlord, owes Ukrops $8.7 million which is quite a bit higher than the original agreement that IMD had with Ukrops.

So by this case, it clearly appears that the original landlord, IMD, feels they screwed Ukrops by $5.6 Million so they were giving it back in discounted rent. And now it appears that Ukrops who has sold off all of it's property, is now trying to screw Valley Bank.

It looks like Valley Bank has a nice big mess on their hands. A renter who bailed out on their 20 year lease and is trying to stick it to them even worse and a huge rental property that is going to be difficult to unload. I guess that means no more local loans from Valley for a while. I would have assumed that Ukrops would have filed a lien on the property for what they were owed. It's a perfect example for getting title insurance from a huge title company. This kind of thing could drive a little title company out of business and guess what, then you're stuck with the bill.

By my rental standards based on the monthly rent, the property is worth $3,666,687.50 and that's my final offer!

Read the full story here


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