Wednesday, August 5, 2009

Lien-holder Buys Patrick Henry Hotel for $2 Million

Substitute Trustee Bill Mason reads the details for bidders^

Potomac's Kristin Duffy talks to her client after placing winning bid^


Potomac Realty Capital of Delaware has gone from lien holder to owner of the Patrick Henry Hotel following a $2 million bid at an auction this morning on the Roanoke City Courthouse steps. Potomac representative Kristin Duffy placed the only bid and heard lawyer Cooper Youell of Roanoke, who was representing an unnamed client, bellow, "She can have it for $2 million." That ended the bidding.

Youell said he was not representing developer Ed Walker, who has been involved in some high profile rehabs downtown recently, but he would not name his client.

Duffy refused to say anything about her client, future plans or anything else. Potomac was the holder of a note that was in default. The owner of the hotel was Affirmative Equities of New York, which is in bankruptcy (Chapter 11, then 7), filed a little over half a year ago.

The Patrick Henry was recently valued at $3.7 million. Potomac has 30 days to satisfy the conditions of the sale, but Bill Mason, a substitute trustee for the sale, said money will not change hands because the note Potomac holds is for more than $2 million. Potomac bought both the building and any debt associated with it.

The 125-room Patrick Henry was built in 1925 and is an historic property.

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