Massive foreclosure: Western subdivisions rocked by default
In what could be Albemarle's most spectacular foreclosure ever–- totaling $17.4 million–- holdings of two companies, including the developer of the pricey-parceled the Rocks subdivision in Ivy, will go on the auction block May 26 at 2pm at the county courthouse.
The Rocks LLC owes $12.5 million to BB&T, Branch Banking & Trust, which plans to sell off parcels that include 29 lots in the Ragged Mountain Farm subdivision on Dick Woods Road, according to foreclosure notices in the Daily Progress.
Another foreclosure that same day will sell parcels in Murphy's Creek Farm off Blenheim Road to recoup another $4.9 million allegedly owed to BB&T. Lower Sherwood LLC is the debtor for the Murphy's Creek properties, but it shares the same address–- 1338 Stony Point Road, Suite 201–- as the Rocks LLC.
"Those loans are current," says Alex Toomy, who developed those properties, along with Amy Toomy, Jean Ann Woods, and Rick Carter of Southland Homes. He also denies online chatter that he has committed a strategic default, or that funds were in any way misappropriated.
"BB&T would not renew the notes, putting them in default," says Toomy, explaining that lines of credit are typically are renewed every year, but because of federal guidelines, that didn't happen this year.
Toomy also notes that he and Amy Toomy sold their shares in the Rocks LLC almost two years ago but still are co-owners of Lower Sherwood LLC.
Updated 1:55pm May 13 with the Rocks' neighbor, Ragged Mountain Farms.
Updated May 14 with Ragged Mountain Farm photo and with Murphy's Creek Farm foreclosure.
Updated May 18 with Alex Toomy comments.
–Original headline: The Rocks LLC crumbles?