A Different Perspective

Dumb Policy

Rich Kruse (Gryphon USA, Ltd.) — Sat, 21 Nov 2009 07:19:45 -0600

I am sure there are folks all over with this problem, so it would seem like a good idea to solve it quickly, huh?

•1. Property was purchased at the top of the market.

•2. Mortgage advisor suggested 3 year balloon

•3. Fairly financially savvy buyer accepted the assumed risk of interest rate variations in 3 years

•4. Savvy buyer never thought the market would tank

•5. Buyer (now owner) has good job and no (terrible) credit issues.

•6. Owner is making monthly payment without issue and willing to continue doing so

•7. Owner is willing to pay even more monthly if he needs to do so

•8. Mortgage is in "technical default" because owner could not refinance after 3 years

•9. Foreclosure is in process and bank is going to take the home

I am not so fresh to think that these are all the details, but if it is accurate then isn't this a classic case of policy getting in the way of progress?

My hat is off to you guys who deal with the residential short sales. I needed to give it up. Couldn't handle needing to work within the confines of the Policy vs. negotiating a reasonable solution. Hopefully a referral to the real estate attorney can help this guy.

Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Ohio Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

If It Were FREE?

Rich Kruse (Gryphon USA, Ltd.) — Sat, 21 Nov 2009 06:16:52 -0600

Would you use it?

You see them all over. The wire racks with the FREE magazine in it. Apartments FOR RENT, Trader Magazines, and Coupon Books.

What if there was a rack filled with a full color, professionally designed and printed, glossy magazine that showed listings of real estate all over the country, including your local area and even from the local real estate office (Yours?)? Do you think a consumer would pick it up? Would you?

Would you as an agent want to have your properties profiled in it? Would you do it if it were free to place the ad and free to have the magazine distributed right to the racks in your local market?

Would this be a good thing for an agent?

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Agent Compensation Packages ?

Rich Kruse (Gryphon USA, Ltd.) — Sat, 14 Nov 2009 08:23:21 -0600

This started out as a comment on another post, but I wouldn't mind thoughts from others and didn't want to hijack another brokers post.

We are working on growing our office, so I have given a lot of thought to how different compensation and growth models will work. I'd love some input here.

The first thing I did was affiliate with United Country Real Estate so I could offer the agents more "tools" than I could as an independent. I can't tell you how many different things there are. I couldn't possibly use all of them, but have picked a few key management tools that work for me and have implemented them into the business. Short run postcards through the Intranet system for example. I can order as many as I want or just one.

Another great part of the affiliation is that our office is getting leads every day from "national" and they are passed out to our guys in order. Every participating agent gets a lead as that agent comes to the top of the rotation. In just a few weeks, we have buyer and seller client leads throughout Ohio. Of course, there are leads coming in from our local company websites too.

Next I established a currently unofficial program that I am trying to firm up. There is tiered compensation and everyone gets an opportunity to work on what they do best. First, there is a percentage for the company of course, then the agents can decide how they want to work; as a finder, deal closer or field operations person.

One guy, for example, only passes off leads and takes a percentage. One likes to work the listing or buyer, but isn't great at prospecting. These two work a lot of projects together, but are not a team, per se. It is also not uncommon for one of our agents to ask me to take his lead, do the research and the proposal for him and close the listing. He then works the listing. On our real estate auction transactions, I generate most of the leads and close the seller, then have an agent that manages all of the buyer calls and shows the property. In addition, we have established relationships with some of the large national commercial brokerages to pass information and leads up and down. Every action has a stated percentage related to it.

December is the time when we take a look at what is going to happen in the new year, so these thoughts are starting to come out. Thoughts and comments are appreciated.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

The Newest Thing In Selling Real Estate - Sort Of

Rich Kruse (Gryphon USA, Ltd.) — Fri, 13 Nov 2009 11:32:11 -0600

Dear Friends,

United Country Auction Services is conducting a commercial multi-property sale this coming Monday for 29 properties with a fair market value in excess of $50,000,000.

This particular offering in Texas is an example of the type of project currently in the planning stages for Ohio to take place this coming April and October 2010.

Please view the following links for a preview of what we will be offering in this market this coming Spring and Fall.

To follow the bidding via your web browser on Monday (auction day), utilize the Follow Online Live Link starting at Noon Eastern Time.

Follow Online Live Link

Auction Information Link

United Country Auction Services is committed to being the largest and most respected integrated network of real estate and auction professionals in the United States and providing clients with the most innovative and technological sale processes possible.

Please contact me at 614-774-4118 or rfk@gryphonusa.com with any questions about our upcoming Multi-Property Auctions or undertaking a private event for you and your clients.

Sincerely,
Richard Kruse
Gryphon USA, Ltd. & United Country Ohio Realty & Auction Group

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

United Country Sets Web Traffic Records !!!!

Rich Kruse (Gryphon USA, Ltd.) — Mon, 09 Nov 2009 09:06:54 -0600

From: Dan Duffy
Sent: Monday, November 02, 2009 3:27 PM
To: Tom Coolidge
Subject: United Country Sets All Time New Records for Web Traffic in October and September

Entire United Country Family -

I wanted to share some news that you can utilize in your local efforts to secure listings and recruit the best agents...

As most of you know, earlier this year, United Country deployed a number of advanced SEO strategies (that will remain confidential to the outside market) that have dramatically increased our "footprint" on the web. These efforts are now fully implemented and are driving record results.

We (all of us) set new, all time record performance benchmarks for web site traffic with new records in visitors for the months of September and October...even exceeding traffic results achieved at the peak of the market for those months.

Our traffic for the full portfolio of UC Home Office web sites is nearing 3 million visitors a month and more importantly 125 MILLION page views and 300 MILLION hits.

Our strategy is resulting in a more targeted and localized traffic with more visitors, page views and hits coming on the localized and property type web sites. Our primary home page is also seeing strong performance with just under a million visitors to that site alone (we are pushing visitors to the local web sites so this number intentionally will be flat for the foreseeable future).

We are posting updated web traffic collateral for your use locally on the web site with a new format to capture the full view into our traffic.

WE ARE THE NUMBER ONE WEB SITE FOR NON-URBAN REAL ESTATE IN NORTH AMERICA! Others claim it but in their defense, they are not aware of all of our nearly 1,000 sites and the traffic those sites drive. Either way, we are not in the pay to play lead aggregation business. We do all of this for no additional fee as part of your affiliation with UC. Only UC Offices, Agents and Clients can access the UC portfolio of sites. This is competitive advantage for you.

Dan Duffy

Chief Executive Officer

United Country Real Estate

www.unitedcountry.com

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

I Need Auctioneers

Rich Kruse (Gryphon USA, Ltd.) — Mon, 02 Nov 2009 15:43:56 -0600

After affiliating with United Country Auction Services we are looking to hire and expand our Central Ohio business by seeking an auctioneer, auctioneer apprentice or bird dog that wants to get in on the ground floor. Our office is located in the Polaris Area of Columbus Ohio. We currently conduct Real Estate Auctions and Online Commercial Asset Auctions primarily for lenders and the courts.

There are a couple of opportunities available:

Online Equipment Auctions: We have set up a working infrastructure that has taken our live business to an Online Only Format and need motivated individuals to assist with business prospecting as well as field operations. Compensation is commission based and tiered by specific action undertaken; lead, booking the transaction and field operations. Percentages assigned to each action are based on experience and if you are bringing in a book of business.

Real Estate Auction Bird Dog: Our office conducts real estate auctions for banks, law firms and the courts and we are seeking to grow. This position allows the individual the flexibility to do what they do best and place the operational aspects of the deal on someone else. All you need to do is promote the company and obtain leads. Book them if you want or simply pass the lead to management and move on. This position is commission based and an Ohio Real Estate Sales License is required. An Auctioneer License is NOT required.

Real Estate Auctioneer: This position includes acting as a deal finder as well as closer and field operations manager. You would be managing the seller as well as buyer calls, site inspections and assisting with day of sale activities which may include working as a ringman or calling bids. The company will undertake all transaction marketing actions for you. This position is commission based and requires an Ohio Real Estate Sales License as well as an Ohio Auctioneer License OR Apprentice License.

Mentoring, training, booking assistance and prospecting tools will be made available by the company.

To find out more about United Country Auction Services, click www.ucauctionervices.com. To find out more about United Country Ohio Realty & Auction, OnlineAuctionUSA.com and Gryphon USA, use our main portal site at www.gryphonusa.com or call me at 614-774-4118 or email to rfk@gryphonusa.com.

Rich

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Gryphon branching out as others muscle in on distressed real estate

Rich Kruse (Gryphon USA, Ltd.) — Fri, 09 Oct 2009 07:11:33 -0500

Friday, October 9,

2009 Business First of Columbus - by Brian R. Ball

Gryphon Realty Advisors has joined the United Country Real Estate Inc. network in a bid to expand its auction house division and diversify into the sale of condominiums and single-family houses.

Rich Kruse, president of Gryphon USA Ltd., the brokerage’s parent, said the affiliation with the Kansas City, Mo.-based network will mean a rebranding of his firm to United Country Ohio Realty & Auction Group.

Gryphon and its affiliate Gryphon Asset Management LLC became known as marketers and receivers of distressed real estate amid an unraveled housing market and slump in commercial real estate. Its high-profile commercial assets under receivership include the Northeast Business Campus office park and Thom’s Grandview restaurant.

Kruse wants to broaden his auction business and extend his reach into the residential and commercial real estate markets for when they recover.

“It’s a big risk in this (economic) environment,” he said, “but we’ve calculated it.”

Beyond the country

United Country operates primarily in rural areas through 650 franchised offices in 42 states and in Costa Rica. It entered Ohio in 2007 through franchises in Newport and Woodsfield in eastern Ohio. Walton Realty & Auction Company LLC in Upper Sandusky joined the network in February.

United Country brokerages typically market farm land, ranches, recreational properties and homes in small towns. But the network has expanded into larger cities, including Indianapolis and Dallas, driven in part by the creation of an auction division in 2007.

About 70 United Country brokerages, including Ohio Realty & Auction, offer auction services.

“A lot of our buyers want to move out to the country,” said United Country spokeswoman Mary Carver. “But as we entered the auction industry, we found we have buyers and sellers wanting to work with affiliates located in more urban markets.”

Kruse said the auction services and networking prospects with other brokerages attracted him to United Country. He also sees the affiliation as a way to offer brokerage services in the residential and commercial real estate markets.

“On top of helping out our auction group,” Kruse said, “this creates an opportunity for growth into general brokerage ... that’s just not focused on distressed assets.”

Leveraging contacts

Business diversity has become more important as a growing field of brokerages tap into the increasing supply of distressed properties.

“Having a real estate brokerage primarily focused on distressed assets was all well and good when we were the only ones doing it,” Kruse said. “There’s going to be more of a need for residential folks and nondistressed properties.”

Kruse said he has seen “a shimmer of hope” as the housing market has begun to stabilize amid expectations of a recovery within two years. He intends to launch the residential business during that time through referrals from banks and law firms that have done business with Gryphon’s receivership practice.

“We’ll work with our current corporate clients to jump-start that,” he said. “We’ll move on from there.”

Kruse said the slow economic recovery gives the real estate firm time to establish itself.

United Country has a commercial referral agreement with Colliers International Property Consultants Inc., but Kruse said he expects Ohio Realty & Auction eventually to expand more into the marketing of sound properties valued at $750,000 to $3 million.

“There’s this middle market where you don’t have a lot of people playing that’s too small for the larger brokerages and too big for the smaller brokerages,” he said. “It’s probably an area where we can continue to work on growing the commercial side.”

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Realtor Appreciation Night

Rich Kruse (Gryphon USA, Ltd.) — Wed, 07 Oct 2009 17:10:58 -0500

Realtor Appreciation Night Introducing United Country Ohio Realty & Auction

Sponsored by: Donerick's Pub, First American Title & United Country Ohio Realty & Auction Group

When: Wednesday, October 21, 2009

Time: 5:30 - 7:30 PM

Where: Donerick's Pub - 6711 Dublin Center Dr., Dublin, OH 43017

Attention Realtors, Agents & Brokers - Please join in welcoming United Country Realty & Auction Group to the Central Ohio real estate community. Meet old friends and introduce yourself to new ones.

Appetizers and Complimentary Drink Tickets will be provided for all Ohio agents and brokers who present a brokerage business card or ID.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Agent Benefit - Proxibid Discounts

Rich Kruse (Gryphon USA, Ltd.) — Sun, 04 Oct 2009 06:29:04 -0500

Question: Why Join Us?

Today's Answer: Business Partner Discount - Proxibid

Proxibid typically charges $375 hosting fee to broadcast auctions over the internet. Our auctioneers pay no host fee for real estate auctions and a $50 hosting fee on personal property auctions.

Every little discount helps. Give me a call with questions. 614-885-0020 x 17

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Commercial Property Auction Pre-Qualification Checklist

Rich Kruse (Gryphon USA, Ltd.) — Sun, 04 Oct 2009 06:18:26 -0500

It must b the economy, but I am getting an increased amount of calls from agents, lenders and property owners wanting to discuss the option of offering their property at auction.

If you are planning on calling an auctioneer to discuss a project, below is a quick checklist of items that auctioneer may want to have going quickly.

Commercial Property Auction Pre-Qualification Checklist

Today's Date:

Project/Property Name:

Project/Property Location:

Ownership Type (Fee Owner, Debtor in Possession, Lender, Etc.):

Owners Motivation for Selling:

Please attach any existing marketing material to this form.

•1. Property Description:

•a. Type of property:

•b. Property description (use additional sheet if needed):

•c. Number of units:

•d. Owner or Tenant occupied:

•e. Percent currently occupied or vacant:

•f. Number of tenants (if applicable):

•g. Current lease terms (if applicable):

•h. Current debt amount on property:

•i. How long has seller owned property:

•2. Listing History & Pricing Information:

•a. Has property been previously listed:

•b. How long has property been listed:

•c. Current list price:

•d. Original list price:

•e. Days on the market:

•f. Date of latest appraisal:

•g. Value of latest appraisal:

•h. Number & value of offers to date:

•3. Income & Expense Information:

•a. Annual property taxes:

•b. Annual insurance costs:

•c. Annual estimated maintenance costs:

•d. Gross annual income:

•e. Estimated NOI:

•4. Seller & Auction Related Questions:

•a. Has seller ever had an auction:

•b. If Yes, what was outcome:

•c. How is seller positioned financially:

•d. Seller motivation level to sell property (must sell, need to sell, etc):

•e. Is seller open to an "Absolute" auction:

•f. Sellers ability to pay "upfront marketing funds":

•g. Current commercial sales activity in the area:

•h. Type of property surrounding the subject property:

•i. Amount of vacancy in surrounding properties:

•j. Owner financing available (yes or no):

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Gryphon USA Announces Subsidiary Gryphon Realty Advisors Affiliates with United Country Real Estate

Rich Kruse (Gryphon USA, Ltd.) — Sat, 03 Oct 2009 09:45:51 -0500

October 2, 2009 (COLUMBUS, Ohio.) - Richard & Melissa Kruse have recently transitioned Gryphon Realty Advisors into an affiliation with United Country Real Estate and will operate the first Central Ohio brokerage and auction franchise in Columbus, Ohio. Their office is located in the Polaris Area at 9387 S. Old State Rd., Columbus Ohio 43035 and will be renamed United Country - Ohio Realty & Auction Group.

"We're excited about joining the largest network of traditional real estate agents and auctioneers in the country," said Rich Kruse, President of Gryphon USA, Ltd., the parent company of the new affiliate. "With United Country's integrated network, we can simply offer our corporate and individual clients more options when it comes to the best approach to selling a particular property or series of business assets."

United Country - Ohio Realty & Auction will offer United's unique marketing services that cover the country with a reach unmatched by any other real estate organization, including the No. 1 Auction Practice Group in the US, exclusive national real estate catalogs, national advertising of local properties in hundreds of newspapers and magazines, a private database of more than 300,000 buyers, direct mail programs, e-mail advertising and illustrated brochures showcasing selected communities and properties. Additionally, by affiliating with United Country, Gryphon Realty Advisors now offers home warranties, home mortgages, land financing, 1031 tax services and other services designed for successful real estate transactions.

The United Country - Ohio Realty & Auction Group team can be contacted by phone at 614-885-0020 or by e-mail at rfk@gryphponusa.com. Additional information can be found at www.gryphonusa.com, www.ucohiorealty.com and www.ucohioauctions.com.

About Gryphon USA Columbus-based Gryphon USA, Ltd. and its subsidiary companies focus on the management, restructuring or wind down and liquidation of single assets through and including entire companies. The company maintains a real estate brokerage practice, auction group, property management division and appraisal division. Co-founders Richard & Melissa Kruse also regularly hold engagements as receiver throughout Ohio.

About United Country United Country Real Estate is the largest integrated real estate and auction company in the U.S. Based in Kansas City, Mo., the company has been an innovator in real estate marketing since 1925. United Country is the only national franchise specializing in auction properties. The company supports nearly 675 general brokerage offices, plus more than 70 auction offices nationwide with a unique, comprehensive marketing program that includes one of the largest portfolios of property marketing web sites (more than 750 separate sites), publishes seven proprietary real estate catalogs with a cumulative distribution of 1.5 million, an extensive, current buyer database and national advertising of properties to more than 90 million potential buyer prospects a week. United Country has been recognized as a Top 25 Franchise by the Wall Street Journal and among Entrepreneur Magazine's Franchise 500®.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Realtor Compensation at Auction

Rich Kruse (Gryphon USA, Ltd.) — Mon, 07 Sep 2009 13:26:04 -0500

This morning I was going through the mail and saw the new In Contract magazine that comes to the brokerage. The first thing I usually do is look at the upcoming educational courses for things I want to attend or to suggest to my agents.

Next month an agent and attorney are holding a 3 hour CE on the Realtor - Auctioneer relationship. Great. Agents and auctioneer working together is a good thing and the more the agents know about the process, the more comfortable their buyers will be when they bid.

One of the main questions I get at our auctions from agents is how they are going to get paid when they represent a buyer. While I'd prefer this question were a little farther down on their list, it is a great question. The process can differ depending on the auctioneer, but the general principals are the same as in a traditional transaction. For the most part, all an agent needs to do is fully represent their buyers interests throughout the process by actively participating in the four main steps.

Pre-Registration (aka establishing the agency relationship) - Some auctioneers require an agent to pre-register the buyer on the auctioneers registration form.

Attending the Preview (aka showing the property) - Most properties are available for preview or inspection. More times than not, this is where the prospective buyer will get a copy of the terms and conditions and start to ask questions. Auctioneers are generally an exclusive agent of the seller, therefore can't represent the interest of the buyer. It is very important for the agent to be involved at this point.

Attend the Auction (aka preparing the offer) - Counseling the buyer at the time of purchase, explaining the process and contract are an extremely important parts of the buyer agents responsibility.

Attend the Closing (aka attending the closing) - In the final part of the process, the buyer may still have questions.

Please feel free to contact me with any questions you may have about the auction process at 614-885-0020 x 17.

Rich

Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com) The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Ohio Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

We're Back

Rich Kruse (Gryphon USA, Ltd.) — Sun, 06 Sep 2009 07:34:36 -0500

Well, me at least.

The last year has been quite busy and quite interesting. Our asset management business saw significant growth. What started out as one guy with a business card and cell phone in 2003 now has a staff of 12. Knock on wood.

The real exciting things are not in the asset management company though. Melissa and I decided to take the plunge and affiliate with United Country Real Estate to open their first Central Ohio brokerage office. UC has approximately 600 offices around the US and now 1 in Costa Rica. The best part for us is the commitment to the Auction Process with 65 real estate auction offices across the country. Through the network, we can now provide auction services to our clients in any state under the same brand and with a consistent process. Check us out at www.ucohiorealty.com and www.ucohioauctions.com.

In addition to real estate auctions, we went 100% online with our commercial asset auctions. My last live equipment auction was conducted in May. Never again. Since then we have done 7 online only events on our new website www.onlineauctionusa.com. We have partnered with Rasmus Asset Management in Virginia and are tracking to about 300 auctions this year. Check it out and join our mailing list. Events are going on all over the US.

Time to get back to work.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Amid the real estate rubble, law firms build anew

Rich Kruse (Gryphon USA, Ltd.) — Sat, 11 Apr 2009 08:38:26 -0500

Friday, April 10, 2009

Litigation & Corporate Law

Business First of Columbus - by Kevin Kemper

Recessionary economies call for recessionary practice groups, and that's just what local and national law firms are creating.

This great recession, caused in large part by a grossly inflated real estate bubble that burst spectacularly, has, as expected, led to a decline in work for real estate attorneys. To combat the downturn, firms are finding it prudent to create practice groups that keep their attorneys busy and serve the recession-related needs of clients.

Columbus-based Schottenstein Zox & Dunn Co. LPA is one of at least four law firms with a local presence that have created a distressed real estate practice group. Schottenstein's group is composed of 12 attorneys with specializations in litigation, real estate, environmental and bankruptcy law.

"The idea is to have experts in multiple disciplines that are used to working together and can immediately respond," said Randall Arndt, a partner at the firm who, along with partners M. Colette Gibbons and Victoria Powers, head the group.

"We put it together last fall," Arndt said. "We saw the economy turning and by early fall realized we're in for a period of prolonged inactivity."

Schottenstein's strengths have always been its real estate and bankruptcy practices, Arndt said, so it made sense to create the new group.

The initiative also includes attorneys who focus on environmental law.

Real estate that's "distressed" mostly involves a property that isn't producing income, whether through loan payments or rental or lease income. Real estate where property taxes are significantly in arrears also can be considered distressed.

Along with Schottenstein, Baker & Hostetler LLP, Jones Day and Thompson Hine LLP have similar groups. Baker & Hostetler built its distressed real estate group because its clients needed it, said Harlan Robins, a partner and real estate lawyer.

"Clients are responsive and like the fact that we put together a team to address their issues," he said.

While bankruptcy attorneys are swamped with work because of the recession, lawyers in Schottenstein's real estate practice are seeing only 10 to 20 percent of the volume of work they normally do, Arndt said.

The credit crunch that began in the fall and persisted through this spring has put a damper on real estate deals, and law firms across the country are taking similar steps as Schottenstein, said Susan Talley, a partner at Stone Pigman Walther Wittmann LLC in New Orleans.

"This is the third time in my career I've been through this, including the (savings and loan) crisis (in the 1980s and 1990s)," said Talley, who is secretary of the American Bar Association Real Property, Trust and Estate Law Section. "This is probably the worst I've seen."

Steve Intihar, a Bricker & Eckler LLP partner and chairman of the real estate group, said for years the firm has had a cross-disciplinary group that includes bankruptcy lawyers, litigators and tax attorneys. They've been working together on matters involving distressed real estate since before the S&L crisis.

"We represent banks and other lenders in connection with loan work-outs, foreclosures deed-in-lieu transactions and loan sales," Intihar said. "We've also represented buyers and sellers of distressed properties and buyers and sellers of equity interests in distressed properties. While we are certainly in a new recession, the problems and solutions associated with distressed real estate, for the most part, have been around for years. Our real estate industry group has been dealing with these problems and solutions for a long time.

Few options

Beyond the tight credit markets, national retailing clients that planned to expand have decided to cut back because of the recession, Arndt said.

Richmond, Va.-based Circuit City Stores Inc. is a good example of what's happening in this tough market. The retailer shut down last month, leaving vacant seven sites in Central Ohio. In a situation like that, where Circuit City was most likely an anchor tenant for the shopping centers it occupied, the store closings throw the centers into disarray, Arndt said.

Lease contracts between retailers and shopping center owners typically require owners to have an anchor tenant in place. If the owner doesn't, Arndt said contracts usually require owners to reduce rental rates or give tenants the right to break their leases.

That's where the new practice comes in.

"The whole idea of going into these shopping centers and paying these higher rents is that there is a critical mass," Arndt said.

But once a few tenants leave, the negative impact can snowball until an owner is left with a property like Columbus City Center mall.

A 1.2 million-square-foot downtown shopping center, City Center opened in 1989 to great acclaim. Over the past decade, however, the mall died a slow death as anchor tenants and boutique stores left one after another, after another. The mall closed permanently in February.

An increasing number of commercial properties appear to be coming under distress as the recession deepens, says Rich Kruse, president of distressed business and real estate management firm Gryphon USA.

"Commercial properties and larger properties are failing," Kruse said. "I think these owners had deeper pockets and could just hold on longer ... and now they are just out of money and (refinancing) options are few."

In March, for example, a six-building office campus in northeast Columbus ended up in receivership after lender Bank of America foreclosed on the 200,000-square-foot complex.

Franklin County Common Pleas Court Judge Michael Holbrook appointed Gryphon as receiver for the Northeast Business Center properties. In its lawsuit, Bank of America accused an affiliate of Chicago-based Rushmore Properties LLC of failing to pay $37,835 in interest payments due Jan. 1 on two loans with an outstanding balance of $9.42 million.

The landlord bought the Corporate Drive portfolio in June 2006 for $9.7 million, according to public records.

Opportunity amid disruption

While Kruse said some in his field believe current real estate troubles will continue for three to five more years, he's more optimistic it will all be over in 24 months.

"I think we are going to see a lot more projects go under before this is all over, however," Kruse said. "Low-end residential default seems to be slowing a little while the larger commercial project defaults are on the rise."

As work slows in traditional real estate transaction work, real estate attorneys are migrating to help other practices.

"We've found that using real estate lawyers in bankruptcy and foreclosure cases is good because they bring an added expertise," Talley said.

The lawyers at Schottenstein see opportunity in these disruptions, and bill the new practice as being able to help owners negotiate new deals with tenants.

The definition of a distressed property is very fluid, Arndt said, so his firm's practice group is looking for opportunity in other areas as well.

One sector where he sees increased activity is in brownfield properties, or abandoned industrial sites that could be reused.

The firm has 12 such properties it's working with. One is the Columbus Coated Fabrics Corp. site in the Weinland Park area of Columbus, just south of the Ohio State Fairgrounds, said Joseph Reidy, an environmental law attorney and Schottenstein partner.

Schottenstein was hired by Campus Partners for Community Urban Redevelopment, a development group affiliated with Ohio State University that has been working to redevelop the 21-acre site for years.

Schottenstein convinced the U.S. Environmental Protection Agency to grant a waiver from a $1 million lien it placed on the property, negotiated for a $900,000 cleanup contribution from a company affiliated with the site and secured a $3 million Clean Ohio Revitalization Fund grant for demolition and environmental cleanup, Reidy said.

Over the next 18 months, Arndt said it's this type of work that will keep real estate lawyers at Schottenstein going.

"I think we'll be working on distressed real estate for the next several years," he said.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Silver Knight shuts down, but dispute with OSU will carry on

Rich Kruse (Gryphon USA, Ltd.) — Thu, 09 Apr 2009 13:44:29 -0500

Business First of Columbus - by Kevin Kemper

A former licensee of Ohio State University has suffered a take down in a long-running battle with the school, but a March decision from the Ohio Court of Claims means the contest isn't over.

Mike DiSabato, a former OSU wrestler, placed his Silver Knight Sales and Marketing Ltd. business into receivership March 20, putting six employees out of work. The Columbus company made collegiate merchandise and at one time held rights to sell Ohio State football jerseys and other goods.

DiSabato and the school have been sparring over the ending of that deal, and DiSabato said he may yet find satisfaction after a March 23 ruling that his lawsuit against Ohio State can go forward.

Beginning of the end

At its peak, Silver Knight employed 12 workers and brought in more than $5 million in annual revenue from licensing deals with 65 schools, DiSabato said. A majority of that business was with Ohio State, which spelled trouble for the company when the school in 2007 declined to renew DiSabato's licensing deal.

"At the end of the day, if I looked at the numbers, 65 to 70 percent of our business was done with OSU," he said.

DiSabato recalled shipping more than 50,000 jerseys in one year, and paying Ohio State more than $200,000 in royalties.

University administrators said their decision was the result of a deal to sell Nike Inc. the rights to produce Buckeye football jerseys. DiSabato has said, however, it was retaliation for his media interviews criticizing the Nike deal. He was told of the decision three days later.

Silver Knight's filing in Franklin County Common Pleas Court said the company is insolvent. A business liquidation in state court is similar to a bankruptcy liquidation except it's governed by state law instead of federal bankruptcy statutes.

"We just got to the point where it was time to move on," DiSabato said.

DiSabato is focused on a new business, MMA Authentics, a producer and licensee of Mixed Martial Arts apparel.

The court appointed Gryphon Asset Management LLC of Lewis Center to liquidate the company's assets, mainly about $1 million of university-brand inventory, said Rich Kruse, Gryphon's managing partner. Silver Knight's liabilities haven't been tallied, he said.

Another potential asset, Kruse said, is Silver Knight's litigation with Ohio State, and as receiver he plans to pursue it.

"The company has creditors and we need to liquidate assets," Kruse wrote in an e-mail to Columbus Business First. "The OSU ... litigation is an asset."

In his lawsuit, DiSabato alleged that Rick Van Brimmer, director of Ohio State's trademark and licensing office, and Robert Cleveland, the assistant director, disparaged him to other companies working with Silver Knight, hurting his business.

DiSabato sued in October, accusing OSU of breach of contract, illegal interference with business contacts, fraud and slander. Ohio State asked a judge to dismiss the claims. It said breach of contract should not be allowed because Silver Knight's contract was allowed to expire.

Case continues

In his March 23 decision, Judge Joseph Clark threw out the slander claim but ruled the breach of contract, interference and fraud claims can be pursued.

"We're quite pleased with the court's decision," said Jerry Peer Jr., DiSabato's attorney and an associate at Adams Babner & Gitlitz LLC in Columbus. "The real (crux) of the case falls under ... the fraud and (illegal) interference claims."

Silver Knight's lawsuit does not quantify what it may have lost as a result of OSU's alleged actions.

"If we reach the point where we're trying to put a value on the damages," Peer said, "(the receivership) is going to be a big part of that."

Van Brimmer's office referred questions to OSU's media relations department.

"Mike DiSabato and his family have a strong history with Ohio State and our athletics tradition, but we chose not to renew his one-year license agreement in July 2007," OSU spokesman Jim Lynch said in a statement. "We believe that the decision to discontinue our business relationship with Mr. DiSabato was the correct decision and in the best interest of the institution."

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Delaware Hotel a tough sell

Rich Kruse (Gryphon USA, Ltd.) — Thu, 19 Mar 2009 05:56:39 -0500

Delaware Gazette

Thursday, March 19, 2009

By ANDREW TOBIAS
Staff Writer

The bank that foreclosed on the Delaware Hotel's previous owners is still looking for a buyer after Wednesday's sheriff's auction failed to yield any third-party bidders for the property.

An attorney for New York lender Ciena Capital LLC bought the 5.4-acre property and four-story hotel located at 351 S. Sandusky St. for $860,000 - two-thirds of the property's $1.3 million appraised value and the minimum possible bid allowed by law in a sheriff's sale.

Ciena, which in October declared bankruptcy as a result of the recent economic downturn, had hired Lewis Center-based Gryphon Realty Advisors to try and promote the property.

"The bank didn't really want to own it," said Richard Kruse, president of Gryphon. But, if the bank didn't place a bid, then the foreclosure process would continue to recycle until a bidder was found.

Six interested parties that had toured the property attended the sheriff sale, but none were willing to pay the $860,000 asking price (with a required $129,000 cash deposit.)

Kruse said Gryphon would likely begin fielding lower offers over the course of the next several days. Alternatively, a party may come forward who doesn't mind the $860,000 asking price but was unwilling to front the cash deposit, he said.

"We did get a very healthy response but it wasn't at or above $860,000," Kruse said. "So, we'll have to go to plan B."

The property may be a ‘plan B' for the county's efforts to build a new courthouse, if Delaware County Commissioner Todd Hanks gets his way.

Hanks, who attended the sale, said that he has informally made contact with Gryphon to explore the possibility of the county using the site for a new courts facility, as well as a new home for the Delaware Area Transit Authority (DATA).

For the last decade, the county has been exploring building a new courthouse to help alleviate crowding and security concerns with the county's current facilities. Hanks, who was then county auditor, blocked the previous commission board's efforts to move forward with at $51 million facility last year, noting budget shortfall projections.

Hanks said using the Delaware Hotel site would not only address the need for a new courts facility, but would also stimulate economic development in the southern part of the city, something officials have long attempted to do.

"It would create an anchor in the southern area of the city, which would receive an economic stimulus boost, and create basically bookends to make growth go to the center of the city," Hanks said.

Hanks hopes that the proposed project would qualify for federal stimulus money earmarked for community revitalization.

"What could be more revitalizing than tearing it (the Delaware Hotel) down and putting up a substantial economic building such as the courthouse?" Hanks said.

Hanks has not discussed the plan with commissioners Ken O'Brien and Tommy Thompson, but he said he expects to broach the topic with them during today's commissioner meeting.

Reached Wednesday, the other two commissioners confirmed they were not aware of Hanks' plans and said they would need to learn more before offering specific comments on the project's merits.

"Before we look at anything, we need to see how that might affect our budget situation," Thompson said, referring to the county's current operating deficit in excess of $9 million.

Hanks was not the only local government official who attended Wednesday's sheriff's sale - representatives from the city were there as well. City spokesman Lee Yoakum said they were keeping an eye on the auction "just out of old-fashioned curiosity."

The hotel has been closed since September, when inspectors with Delaware City, the Delaware General Health Department and the state fire marshal's office found an extensive number of code violations.

Among the violations: the smoke detectors in about 95 percent of the rooms were inoperable or without batteries, some rooms had exposed wiring, faulty air-conditioning units, food scraps left in uncleaned rooms, mold and water leaks.

Inspectors also found the hotel allowed guests to stay much longer than the 15 days allowed by code.

The hotel, which first opened in 1974, previously failed inspection and was closed in November 2007. The violations were remedied and the building re-opened for business. It remained operating until the 2008 code violations.

Pragat Prayosha LLC, the hotel's previous owner, was foreclosed upon after it defaulted on a $1.65 million loan it took out from Ciena to buy the property in 2007.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Sheriff Sale - Process Problem

Rich Kruse (Gryphon USA, Ltd.) — Thu, 19 Mar 2009 05:53:00 -0500

Good morning. Yesterday I attended the Delaware County Sheriff Sale with hopes that we would be able to get the Delaware Hotel sold without the lender taking it into REO. Unfortunately the property did not sell for the minimum bid price.

This property was aggressively marketed through press relations, web promotion and via email. It generated 4 newspaper articles about the auction, thousands of web hits, dozens of phone and email inquiries, 16 parties showed up for inspection and 6 attended the auction. Unfortunately all 6 prospective bidders were there out of curiosity because none stepped up and bid the minimum.

Three of the bidders have already stated that they will probably be submitting offers. We'll see.

I fully understand that we must have processes and policies in place to keep order and that no process is perfect. The Sheriff Sale process in today's economy and today's real estate market has fatal flaws that injure the community, creditor and possibly even the owner.

Let's look at this particular asset and use real numbers.

System Flaw - The appraised value for this property as determined by the Sheriff's Office was $1,290,000. The Sheriffs Office in many counties now has the disclaimer that the asset was appraised from an exterior review only. How, I must ask, can anyone gauge the value of a 104 unit hotel with a restaurant, bar, pool and 4 pages of code violations from the exterior?

Solution - Tough question to answer unfortunately. It would take an MAI appraiser 3 weeks, an 80 page report and cost $4,500 +/- to do this the right way. I also can't remember the last time the pre-foreclosure appraisal and the sale price were similar!

System Flaw - A minimum bid of 2/3 of appraised is required.

Solution - Give the creditor more discretion in determining what THEY want the minimum to be. In the Delaware Hotel auction, the creditor would have likely taken below $860,000 so it would not need to go to REO.

System Flaw - Bidding starts at the minimum 2/3 value.

Solution - In conjunction with creditor discretion, bidding could start below the minimum of stated reserve price. I can't tell you how many times I have started an auction asking for bids at one price only to reduce the ask considerably before receiving a bid, ultimately having the bids increase over the first ask to close the auction higher. Using this solution option would also require the creditor discretion to extend to being able to confirm a top bid below a previously stated minimum. It happens all the time in traditional auctions.

System Flaw - The deposit requirement was $129,000.

Solution - A deposit on a traditional contract on the open market for a property of this type and price point would be between $10,000 and $50,000. More reasonable deposits will stimulate bidder participation.

System Flaw - Short closing time requirement.

Solution - This has actually gotten a little more relaxed in many sales and was not an issue with the Delaware Hotel.

I should acknowledge that modification of the process on the average residential property is not realistic. Mortgages sold to Wall Street have built in and unchangeable processes attached. Commercial lenders loaning their own "portfolio" funds should be able to have this discretion with their money.

Other solutions to the problem can be Receiver Sales or Special Master Sales. Those topics and processes are posts of their own.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Do I Deserve a Bail Out or Am I Screwed?

Rich Kruse (Gryphon USA, Ltd.) — Sun, 15 Mar 2009 10:26:00 -0500

I figure that I will never win the lottery, so I don't waste my money on it.
I grocery shop with coupons.
I bought my new TV on super sale and only AFTER my old TV died.
I buy my cars a couple of years old instead of brand new and try to pay cash for them.
I cut the grass myself.
I put away money for my daughters college fund.
I'd rather cook than go out for dinner. (Being no slouch in the kitchen helps).

I try to be responsible with money, knowing that life can change.

Some of my neighbors are always complaining about not having any money.
Some of my neighbors have brand new cars, the biggest TV's one can buy, spend the weekend at the mall and eat out a few times a week.
Some of my neighbors refinanced at the top of the market and have interest only loans at high rates. The money was spent long ago.

I have a 30 year mortgage at 5.25% that is paid on time. I secured this when I bought the house in 2001 and started paying it down like I am supposed to do.
I have a nice home that was purchased for $281,000 8 years ago. I invested another $20,000 in a finished basement. It would have cost $35,000, but I have an ultimate set of tools and mad skills.

A home in my neighborhood just a block away sold last week at the Sheriffs Auction to a third party, not the bank, for $196,000. It had a finished basement, nice landscaping, 3 car garage (mine has 2) and was the exact same model and square footage as mine. It even has the same brick and siding color. IT'S THE SAME HOUSE.

I am just wondering......now what should I do? I am invested $316,000 ++ in my house and there is a comp at $196,000.

Can I expect a bail out?
Can I expect reduction in the principal balance on my home?

Maybe I should just go spend all my money on Vegas vacations and quit paying my mortgage first. Yeah, that's the ticket.

If I don't act irresponsibly, I'm gonna end up getting screwed.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Columbus offices placed in receivership

Rich Kruse (Gryphon USA, Ltd.) — Sat, 07 Mar 2009 06:57:50 -0600

March 6, 2009 Business First of Columbus - by Brian R. Ball

A six-building office campus in northeast Columbus has ended up in receivership after lender Bank of America foreclosed on the 200,000-square-foot complex.

Franklin County Common Pleas Court Judge Michael Holbrook appointed Gryphon Asset Management LLC on March 2 as receiver for the Northeast Business Center properties. In its Feb. 27 lawsuit, Bank of America accused an affiliate of Chicago-based Rushmore Properties LLC of failing to pay $37,835 in interest payments due Jan. 1 on two loans with an outstanding balance of $9.42 million.

The landlord bought the Corporate Drive portfolio in June 2006 for $9.7 million, according to public records.

Gryphon President Rich Kruse said initial plans call for examining the property's condition and its leasing history before developing a leasing and asset disposal strategy.

"At this point, what that strategy will be is undetermined," Kruse said. "We have to get the lay of the land."

Rushmore bought the property from lender Wrightwood Capital, which had taken control from ARFO Northeast LLC in November 2005 in lieu of foreclosure. ARFO had paid $12.7 million for the properties in December 1998, according to public records. Rushmore financed the acquisition through LaSalle Bank, which Bank of America has since purchased.

A Rushmore representative could not be reached for comment. Holbrook's order said the investor's attorneys did not oppose the appointment of a receiver.

A search of the LoopNet Inc. real estate database shows the property owner had put four of the buildings on the market for $8 million through the Chicago office of the Grubb & Ellis Co. brokerage. Public records also show three of the six properties have mechanic's liens totaling $186,000 for maintenance and other improvements.

Kruse said a CB Richard Ellis Group Inc. leasing team has some prospective tenants, but signing those clients likely will mean spending cash for tenant improvements.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Delaware Hotel lender opts for auction in bid to avoid taking title

Rich Kruse (Gryphon USA, Ltd.) — Sat, 07 Mar 2009 06:53:09 -0600

March 6, 2009

Business First of Columbus - by Brian R. Ball

The lender to a foreclosed hotel in Delaware hopes a bit of extra marketing will help it avoid the typical two-step auction process to getting a troubled asset off its balance sheet.

Ciena Capital Funding LLC has hired Lewis Center-based Gryphon Realty Advisors and Oklahoma-based auctioneer National Commercial Auctioneers to drum up interest among investors and hotel operators in the planned March 18 sale of the four-story, 104-room Delaware Hotel at 351 S. Sandusky St.

Lenders who foreclose on a property wind up with the title when a sheriff's sale fails to attract an acceptable price.

"The bank wanted to see if, by marketing the property, they can get more attention than through the (sheriff's sale) legal ads," said Gryphon Realty President Rich Kruse. "It's about getting it done now."

A buyer must pay at least $860,000, or two-thirds of the $1.29 million appraised value of the 37-year-old property, to win the public sheriff's auction.

Ciena Capital filed a foreclosure lawsuit July 31 against owner Pragat Prayosha LLC, which took out a $1.65 million loan in March 2007.

The property sits on 5.4 acres and includes a restaurant, banquet facilities and an indoor pool.

Public inspections of the property will take place March 11 and 18.

Kruse said he expects lenders to follow Ciena's game plan as the faltering economy forces more properties into foreclosure.

"We're seeing a little bit of change in mentality among lenders," he said.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Press Releases to Promote Assets

Rich Kruse (Gryphon USA, Ltd.) — Tue, 03 Mar 2009 07:58:57 -0600

One of my marketing vendors tells me that if I eat a candy bar I should send a press release on the taste. He is joking, but every business joke has a little bit of truth in it.

Every time our office undertakes a substantial event, we utilize press relations to promote the project. Below is the second story coming from a release sent yesterday, March 2, 2009. The third local article should come out on Friday. This type of promotion can not be bought.

Who wants to own the Delaware Hotel?

By Andrew Tobias
Staff Writer, Delaware Gazette

This question could be answered later this month when the well-known Delaware eyesore, located at 351 S. Sandusky St. is slated to be auctioned off at a Delaware County sheriff sale.

The auction will be held at 10 a.m. March 18 in the first-floor lobby area of the Hayes Government Services Building at 140 N. Sandusky St. in Delaware.

Inspectors closed the hotel in September due to numerous health, fire and zoning violations.

Bids for the 5.4 acre property and four-story hotel will start at $860,000, or two-thirds of the sheriff's appraised value of $1,290,000, according to auctioneer Gryphon Realty Advisors, of Lewis Center.

Prospective buyers can tour the property between 1:30 p.m and 3:30 p.m. March 11 and 16.

Richard F. Kruse, the president of Gryphon, said the hotel's location off U.S. 23 made it a "tremendous investment opportunity" and a good value for hotel operators.

"While the property needs some corrective actions before the business can re-open, any experienced operator can accomplish what needs to happen quickly and re-start the business into a profitable venture," he said in a written release.

Gryphon will provide interested parties with information about the property's deficiencies.

"The more the prospective purchaser knows about the property, the more comfortable they are," Kruse said.

Whoever purchases the building would have to make significant improvements in order to be compliant with health and safety codes, Delaware City spokesman Lee Yoakum said.

Before re-opening, Yoakum said, the owner of the property would also need to get the OK from inspectors.

"Whatever ends up there is going to take some work and some investment," he said.

In September, inspectors with Delaware City, the Delaware General Health Department and the state fire marshal's office found an extensive number of violations: the smoke detectors in about 95 percent of the rooms were inoperable or without batteries, some rooms had exposed wiring, faulty air-conditioning units, food scraps left in uncleaned rooms, mold and water leaks.

Inspectors also found the hotel allowed guests to stay much longer than the 15 days allowed by code.

Pragat Prayosha LLC, the corporation that owns the hotel, has been foreclosed upon after it defaulted on a $1.65 million loan it took out to buy the property in 2007. There is also a tax lien on the property and Pragat owes the county about $38,000 in back taxes, according to the treasurer's office.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

What Agents Are Thinking (Filtered)

Rich Kruse (Gryphon USA, Ltd.) — Tue, 03 Mar 2009 06:47:26 -0600

Selling defaulted asset has changed a considerable amount since I started in the business in 1997. No matter what the asset class, sellers have always wanted to negotiate the fees and expenses being charged by their vendors. It is human nature to negotiate and I think, to a certain extent, these financials should be pushed.

What I find interesting is the extreme pushback on fees and exclusivity in the real estate market today.

As an asset manager as well as a brokerage manager I have a unique way to look at these things. On the one hand, I am sometimes the seller and decision maker. On the other, I am sometimes the brokerage or auction vendor.

A few months ago I started asking around about what was going on in other markets and looking closely at what requests were being made of agents in Columbus, Ohio.

I have talked to agents all over the United States. In summary, here is what most agents are thinking about these top 4 issues.

Exclusive Right to Sell - Most successful brokers/agents polled will not spend time and effort promoting an asset if the seller demands carve outs. A broker is either hired or not hired. Generally, there is no third option as far as they are concerned.
Commission Rates - Ask 10 brokers/agents and you will get a similar answer. Brokerage fees have absolutely nothing to do with what was paid for a property or what was loaned on it, just like bank CEO salaries and legal fees.
Minimum Commissions - There are a lot of assets in many marketplaces that, today, have very low value. It is very common to have minimum commissions. There is a certain effort that goes into every property regardless of price.
"Joe Will Do It" - "Joe will do it for less." "Joe will do it on these terms." Most agents know a "Joe" and will tell you there are reasons Joe will do this and that. Most will also leave it at that. Be wary of the agents that tell you the story. They are not going to keep your confidences either.

Overall this was a very interesting informal investigation with some interesting responses. Hopefully this gives some insight to those who hire brokers and agents around the US.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Delaware Hotel to be auctioned at sheriff's sale

Rich Kruse (Gryphon USA, Ltd.) — Mon, 02 Mar 2009 16:24:57 -0600

Monday, March 2, 2009 11:51 AM By Dana Wilson

The Columbus Dispatch DELAWARE, Ohio -- The Delaware Hotel, which closed last fall, will be auctioned at a sheriff's sale scheduled for March 18 at 10 a.m.

The four-story hotel at 351 S. Sandusky St. was condemned in September after city inspectors found safety- and health-code violations.

Violations included inoperable smoke alarms or alarms without batteries in roughly 95 percent of rooms; vacant rooms containing food scraps; improper electrical connections on air-conditioning units; exposed wiring and uncapped electrical boxes; and bathroom water leaks and mold.

The minimum bid for the hotel and roughly 5.4 acres of land is $860,000. The appraised value is about $1.3 million, according to liquidator and auctioneer Gryphon USA, of Lewis Center.

Prospective buyers can tour the property March 11 and March 16 from 1:30 p.m. to 3:30 p.m.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Foreclosure Auction - Delaware Hotel

Rich Kruse (Gryphon USA, Ltd.) — Wed, 25 Feb 2009 16:30:13 -0600

Description

****FORECLOSURE AUCTION **** SELLS MARCH 18, 2009 AT 10AM

Delaware County Sheriff's sales of real estate are held on the first floor lobby area of the Hayes Services Building (140 N. Sandusky St, Delaware, Ohio 43015)

INSPECTION PERIOD - WEDNESDAY, MARCH 11 FROM 1:30-3:30PM

The property is a 5.4 acre +/- site improved by a 104 room, 4 story, hotel with bar, restaurant and banquet facilities as well as indoor mini Olympic size pool. The property was originally built in 1972 and has sustained various upgrades over recent years. The offering includes all of the furnishings, fixtures and equipment to operate the facility. The property ceased operation in late 2008 and is in need of cosmetic updating and renovation. Former maintenance and management staff is available to assist with re-opening efforts.

Terms of Sale Appraised Value - $1,290,000 Minimum Bid - $864,000 Balance due within 30 days of the date that the confirmation is filed with the Clerk of Courts. Deposit is 10% of appraised value due at time of sale in the form of cash or certified check. Bidders must present Purchaser Information Form at Auction.

See www.gryphonusa.com for more details. Phase 1 information available after signing non-disclosure aggreement.

Features

Broker:	Gryphon Realty & Auction
Floors in Bldg:	4
Lot Size:	5.4 Acres
Guest Rooms:	104

Location

351 S. Sandusky St. Delaware OH 43015

vFlyer Id: 2285995

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17

Box Tops 4 Education

Rich Kruse (Gryphon USA, Ltd.) — Sat, 21 Feb 2009 20:12:18 -0600

Hi all. This is a little different kind of post. It has nothing to do with business, but it has a lot to do with community.

Those of you who have school age kids might know of the program, but maybe not. It is called Box Tops 4 Education. Basically, each box top collected is worth 10 cents for the school you collect for.

For more information, go to www.boxtops4education.com.

I am collecting for my daughters school and have recruited the entire family to help out. If you have the time and desire to look at the products in your kitchen cabinets and see the Box Tops logo, please cut it out and give it to a neighbor or relative for their school age child to bring to school.

If you don't have anyone to collect for, I am happy to accept donations !!!! If you want to help out Savannah's school, send your tops to my office at 9387 S. Old State Rd., Lewis Center OH 43035.

Look for this logo on your food products.

Thank you for your support of the program.

United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17