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Portion of Cortland Manor Apartments being sold at public auction

April 11, 2011|By HEATHER KEELS | heather.keels@herald-mail.com
  • A portion of Cortland Manor Apartments, on Little Elliott Drive, behind the Stone House Square shopping center on Leitersburg Pike, is scheduled to be sold at public auction April 19 in a foreclosure sale.
By Joe Crocetta/Staff Photographer

A portion of the Cortland Manor Apartments complex in north Hagerstown is scheduled to be sold at public auction April 19 in a foreclosure sale, according to a legal notice issued by a Washington, D.C., law firm.

The auction, scheduled for 11 a.m. at the entrance to the Washington County Courthouse, is for 18 buildings containing 216 three-bedroom apartments, according to the notice from Seyfarth Shaw LLP.

Those buildings, described as “phase one” of the apartment complex, represent half of the 36-building, 431-unit complex completed in January 2010.

The property is being sold because the developer defaulted on a 2008 loan, the notice says.

David Shaool, regional property manager for the complex’s owner, Ben Shaool Management Inc., said Monday that the company would not comment about the matter.

The Cortland Manor Apartments are on Little Elliott Drive, behind the Stone House Square shopping center on Leitersburg Pike.

The three-bedroom, two-bathroom apartments included in the sale are about 1,485 square feet each, the auction notice states.

The first Cortland Manor Apartments building was approved for occupancy in August 2006 and the final building was approved for occupancy in January 2010, said Gary Lambert, programs manager for the City of Hagerstown’s code administration team.

Shaool said in May 2009, when about 25 of the 36 buildings had been built, that the apartments were “struggling like everybody else” and were losing money, but the terms of the project financing left the company no choice but to finish the project.

“You have the terms of the loan, and you have the permits and you have a lot of other factors,” Shaool was quoted as saying then. “It doesn’t make sense to stop the project.”

The terms of the sale in the auction notice refer to an “as-is” condition, including environmental conditions, and require acknowledgment that the buyer is barred from claims against certain parties under the Comprehensive Environmental Response Compensation and Liability Act of 1980.

That act, commonly known as the Superfund, provides for liability of persons responsible for the release of hazardous waste at closed and abandoned hazardous waste sites.

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