Back in June of 2019, the SOA filed a “NOTICE OF DELINQUENT ASSESSMENT AND CLAIM OF LIEN”, against the owner (Saemaul Investment LLC) of the Town Square Building housing the Sakana Sushi restaurant (also owned by Saemaul), claiming they were $19,976 in arrears of their SOA assessment payments. Per the Lien document, assessments for this property total $4,408.65/month consisting of a $1,561.25/month regular assessment and a $2,847.40/month master assessment. It is not clear to SU what the difference between these two assessments are, as the SOA’s 2019 operating budget only accounts for the master assessment revenue.
Apparently Saemaul Investment did not make good on the past due payments, because on November 27, 2019 the SOA filed a “NOTICE OF DEFAULT AND ELECTION TO SELL” stating the assessment obligation now totals an estimated $55,286.56. This notice states that: “Pursuant to NRS 116.3116-116.3166 (inclusive), the sale of the real property described below will be held if the deficiency and total amount due is not completely satisfied and paid within ninety (90) days from the date of the mailing of this Notice of Default and Election to Sell”. Not sure what has transpired since then, and why does the SOA want to force the sale of the property? Is there bad blood here, or only a money issue? Hopefully, the SOA will not end up owning it (there is no Deed of Trust encumbering the property) and the future liabilities associated with such ownership (occupancy has been a past problem), or is there an upside here?
Ownership of the Town Square Commercial Properties also has a clouded history, for the interested, a brief summary follows:
- In December 2006, Somersett Development Company LTD obtained a loan from Colonial Bank N.A for $8,775,000 secured by a Deed of Trust for the Town Center Commercial properties.
- In August 2009, Colonial Bank failed amid a fraud scandal and went into receivership.
- In March 2010, the Receivers initiated a NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST against Somersett Development Company due to nonpayment of principal and interest installments.
- In November 2010, Eagle SPE NV1 purchased the properties for $3,232,000.
- In May 2012 Eagle SPE NV1 sold property 1 (the one with the drive up window) to its current owner CAV Somersett LLC for $1,050,000.
- In March 2013 Eagle SPE NV1 sold property 2 to Saemaul Investment for $820,000.
With regard to all the Town Square properties, beginning in 2018, a new cost center “Town Square Properties” for the SOA was established. This in addition to the existing General Common, The Club at Town Center and the Private Gates & Streets. Information related to this new cost center may be obtained by accessing the following SU Blog article dated December 5, 2017: Town Square Properties Cost Center
The 2019 operating budget for this cost center may be accessed via the following link: Town Square 2019 Operating Fund Budget
Given that the Town Square properties are now an integral part of the Somersett operating budget, perhaps the SOA Board could provide owners with an update as to what is transpiring with all of these properties.
What say you? Would it be in the SOA’s best interest to acquire ownership of the Saemual property?