Note: The rent receivable ledger and the associated lease for each tenant showing a balance due are accessible at the bottom of this page.
The above table reflects the rents receivable from ALL tenancies at The Pit Stop of Durham ("TPSoD") as of November 30, 2008. Although this balance continues to grow, this date was chosen because it was shortly after that the fraudulent foreclosure actions Wachovia Bank and Paragon Commercial Bank collaborated on were stepped up considerably in support of the cover-up of MorganStanleyGate. This issue of rent arrears situation resulted from the following factors:
⇨ Property Manager Under-billings -- The findings of an exhaustive audit by a CPA revealed extensive under-billings by former property managers, York Properties ("YP") and Hunter & Associates (H&A). The under-billings were so egregious and extensive that were indicative of either astonishing incompetence or sinister intentions. YP was fired after they were caught diverting tenant prospects to properties they owned, despite assurances provided by CEO Smedes York that policies and procedures were in place to address the conflict of interest in leasing activities. The full extent of YP's under-billings were not revealed until after they were fired; however, when brought to the attention of CEO Banks Hunter of H&A, he resigned. The underbillings resulted from failure to bill tenants for base rent increases, CPI-U increases, TICAM pass-throughs, late charges, interest, etc.
⇨ Property Manager Misinformation -- Tenants said they were informed by both YP and H&A AFTER each was no longer managing TPSoD that the Landlord was over-billing tenants. Although the subsequent billings were proved accurate, this caused distrust and harmed business relationships with many of the tenants. The biggest point of contention was the pass-through of TICAM, so in response EVERY invoice, and the accounting entries for each such expenditure was posted on-line.
⇨ Property Manager Insubordination -- The day-to-day property manager at H&A, Terrill Wipper, left to form her own property management company a few months before Banks Hunter resigned under controversy. She indicated she was not involved in the billing at H&A and pleaded to handle the property management of TPSoD, as well as The Courtyard of Chapel Hill ("TCoCH"). Notwithstanding, shortly after undertaking the day-to-day management, she suddenly refused to make any efforts to collect rent arrears, and then resigned. What was so odd about this behavior is that just months earlier, she was virtually on the brink of tears, asking to be hired as property manager. ⇨ Engaged Attorneys Stonewalling Collections -- When being considered for engagement as real estate legal counsel for Spencer C. Young Investments, Inc., Bill Matthews, Senior Partner at Womble Carlyle, made express representations to handle ALL legal matters associated with the contemplated commercial real estate investments in North Carolina. After working dutifully for three years, he oddly refused to do anything about the rent arrears, when the issue first surfaced, and refused to be involved -- Womble Carlyle was fired as a result. Bill Brian of Kennedy Covington was then engaged, and although he agreed addressing the rent arrears issue was to be his top priority, Kennedy Covington did absolutely nothing on this front. When inquiry was made about the lack of progress on this and other matters over a span of more than six months, he abruptly resigned. Kieran Shanahan of Shanahan Law Group was then engaged, and although he swore up and down to make the mounting arrears issue a priority, he behaved similarly to Messrs. Matthews and Brian.
⇨ Unethical Advice from Local Attorneys -- Tenants at both TPSoD and TCoCH were being told by a range of attorneys that if they just didn't pay their rent, they would eventually NEVER have to pay the rent arrears.