$1.65-Million Auction Dent Put in $10-Million Debt to First Bank & Trust on ITFederal Developmental Loan to FR-WC EDA

As planned, a 30-acre parcel with one building erected on it at the former Avtex Superfund site in Front Royal was auctioned off on Wednesday, August 12, to help settle an outstanding debt owed to First Bank & Trust. That debt was incurred by the County- and Town-overseen Economic Development Authority (EDA, FR-WC EDA) due to a $10-million bank loan to the EDA to help facilitate the unrealized ITFederal mega-development on the former Avtex Superfund site off Kendrick Lane in the Town of Front Royal. The loan occurred during the circa 2014 to 2018 run up to the FR-WC EDA “financial scandal”.

After the full half-hour auction involving 9 certified bidders, the purchaser at a price of $1,650,000 was Jim Weber. As he signed the necessary transaction paperwork with representatives of Auction overseer Motleys Real Estate and Asset Disposition Group, Weber identified himself to questioning media as a representative of Segmental Wall Specialists. Weber noted that the company was currently involved in building restoration work in Front Royal in the 500 block of East Main Street and the Blue Ridge Avenue area. He did not specify any specific plans for the 30-acre parcel and 9,768 square-foot office building with a listed address of “600 Transcend Drive”.

Congrats, post-auction, from left: Auctioneer Ernie Rogers, Motley Principal Broker Carly Hancock, and auction high bidder Jim Weber. Below, a perspective shot of the crowd gathered to bid or watch the bidding on the WC Courthouse grounds. Royal Examiner Photos Roger Bianchini

Preliminary information published regarding the auction noted that the property had been valued as high as $3,087,200, with opening bids in the planned half-hour auction, 1 p.m. to 1:30 p.m., starting at $425,000.

In seeking bids, Auctioneer Ernie Rogers noted the $3 million number, elaborating that a recent appraisal had come in at $2.9 million. Information circulated in the run-up to the auction described its positive potential in this way:

“30.09± acres in Warren County with a 9,768 SF office building presents the opportunity to grow, expand, or reposition. The site is zoned MCD (Mixed-Use Corridor District), providing broad flexibility for corporate campuses, institutional, light industrial, R&D, or mixed-use development — giving the next owner real optionality on how the land is ultimately utilized. Strategically located along the I-66 corridor, the property is readily accessible from Northern Virginia, Maryland, and the broader Shenandoah Valley region.”

Do I see a winner out there!?! Two shots of Auctioneer Ernie Rogers pointing to those pondering their next bid and urging them to make it. – Further below, maybe Rogers did see a winner in advance as Jim Weber, blue shirt in sun on walkway, maintained a centralized bidding position throughout.

Of the completed building on the property, it was added that it has a “Functional layout featuring reception, lobby, private offices, conference rooms, large storage areas, and multiple restrooms.”

One might guess that whatever use is eventually proposed for the building and its surrounding property, those “multiple restrooms” could be a decisive factor, think?

Legal Challenge?

Though neither ITFederal nor its principal Truc ‘Curt’ Tran kept up loan payments to the EDA during the legal maneuvering surrounding settlements of the EDA “financial scandal” variables, we believe Tran had indicated a legal challenge of the legality of the auctioning off of the still referenced “ITFederal” property. It is believed that challenge made it to court within a week of the auction. And obviously, considering Wednesday’s auction actions, it would indicate that any such legal filing was unsuccessful.

Congratulations to bidding winner Jim Weber before he heads for the Motleys table for a little paperwork. Wait, is that Weber below prior to the auction start at the Richmond-based Motleys registration table? I believe it is. And a final shot of the one completed building on the former ITFed site, listed at 600 Transcend Drive. Dare we guess at what might be transcended there now with new ownership?