Federal judge approves sale of Rarity Bay properties to Salem Pointe Capital
A federal judge has authorized the sale of properties at the
Rarity Bay development in Vonore to Salem Pointe Capital
LLC, a newly formed ownership group based in Knoxville.
In a Wednesday hearing, U.S. District Judge Thomas Varlan
called Salem Pointe's $5.75 million offer, which drew no
objections, "fair and reasonable."
Varlan had directed a receiver in January to conduct a
private sale of assets, which included the golf course and
clubhouse, 172 lots, 11 condos and approximately 27 acres of
vacant land.
The deal is expected to close within 30 days.
"It's a local property that we've been eying for some time.
It's had some headlines, but it hasn't had anything to do
with the property or the people who live there. We are very
excited and humbled to be part of its future," said Michael
Ayres of Salem Pointe. Ayres also is an associate director
with Cushman & Wakefield Cornerstone.
Sam McCamy III, president of McCamy Construction, will be
the master developer for the project.
The court-ordered receivership sale is in connection with a
long-standing legal dispute between Knoxville developer
Robert Stooksbury and his former business partner, Maryville
developer Mike Ross. Stooksbury has been trying to collect
damages owed since 2012.
Five bids originally were received, although one later
withdrew, said Sterling Owen IV, the former Knoxville police
chief who was appointed receiver. Among the four bids, only
Salem Pointe's offer met the threshold requirements based on
the average of three property appraisals valued at $8.5
million. No sale could be confirmed at a price less than
two-thirds of that amount.
When asked by Varlan if the proposed contract was agreeable,
Stooksbury's attorney Wayne Ritchie said, "I certainly do.
It's in the best interest to complete the sale. There
continues to be expenses that accompany the property that
could cause the value to potentially diminish."
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4/17/15