By MATT BLOIS
A lender has scheduled a foreclosure auction for a large chunk of the Ovation property in Cool Springs.
The developer Stan Thomas borrowed $10.5 million from the New York real estate firm Gamma Real Estate to develop a 43 acre portion of Ovation. According to property records, his company purchased the land for $15.1 million in 2015.
Thomas’ company also owes more than $130,000 in unpaid property taxes for the southern portion of Ovation.
In bankruptcy court filings from November 2018, Gamma Real Estate reported that Thomas’ company owed the firm $10.2 million. The company has scheduled an auction for Sept. 27 at the Franklin courthouse.
However, the Nashville Business Journal reports that this lender has previously scheduled foreclosure auctions without following through. The auction can serve as a tactic to encourage the borrower to renegotiate the loan.
The Business Journal reports that lenders have scheduled at least a dozen auction on Thomas’ Ovation properties over the last several years.
Thomas lost another piece of Ovation when a different lender foreclosed on an adjacent property earlier this year. The remaining property is the last portion of Ovation Thomas owns.
At the foreclosure auction in June, a buyer put in a $42.5 million bid, but didn’t deliver the money before a deadline at the end of the day. The land when to the lender, which entered the second highest bid of $40.5 million, $5.5 million higher than the starting price of $35 million.
Notably, the public notice about the new foreclosure auction specifies that if the winning bidder can’t pay the sale price on time they will be obligated to pay the difference between the highest and second highest bids. That wasn’t included in the foreclosure notice in June.