Inland Residential Extends Time for Buyer to Obtain Loan Assumption Approval
June 13, 2019 | James Sprow | Blue Vault
Inland Residential Properties Trust, Inc. (“IRESI”) is pursuing its plan of liquidation and selling its last remaining property investment. On December 21, 2018, the REIT entered into a contract to sell The Verandas at Mitylene, located in Montgomery, Alabama, for a sale price of approximately $47.5 million, minus the principal amount outstanding on an approximately $21.9 million mortgage loan to be assumed by the buyer. The sale of the property was subject to conditions contained in the agreement, including the lender’s approval of the buyer’s assumption of the mortgage loan.
On June 7, 2019, IRESI Montgomery Mitylene, L.L.C., an indirect wholly owned subsidiary of Inland Residential Properties Trust, Inc., and B & M Development Company, L.L.C., an unaffiliated third party entered into a third amendment to the agreement between those parties dated December 21, 2018.
The amendment extends the loan assumption approval date to June 24, 2019. If the buyer does not receive the loan assumption approval by June 24, 2019, either party may terminate the agreement, in which case the buyer will be entitled to return of the earnest money of $500,000, and if terminated by the Mitylene Subsidiary, reimbursement from the Mitylene Subsidiary of an amount up to $40,000 for third party out of pocket expenses incurred by the buyer in connection with the agreement or its investigating the Property. The Amendment also amends the closing date, if any, to June 28, 2019.
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