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    Classified listings Homes section

    One Loudoun sold for $35 million to original owner

    In less than five minutes and after a brief huddle session, the foreclosed One Loudoun property in Ashburn sold for $35 million at auction.

    Bill May, the vice president of Miller & Smith, which is One Loudoun’s developer and the property’s note holder, was the auction’s winner on Sept. 28.

    One Loudoun is planned as a town-center-style development on 358 acres at Route 7 and Loudoun County Parkway. The development was approved by the Loudoun supervisors on Jan. 16, 2007. Two months later, Goldman Sachs Commercial Mortgage Capital lent One Loudoun, LLC $125 million to fund the project, according to a March 21, 2007, deed of trust.

    A small crowd of 15 people gathered to watch the auction on the Loudoun County Courthouse steps in Leesburg. Most onlookers attended to witness the making of history with the property’s sale, which county leaders have touted as “the biggest and most integrated center in Loudoun County.” The property was announced to be in foreclosure according to a trustees’ sale notice last week.

    Real estate developer Sal Cangiano, donning Nike exercise clothes and sunglasses, started the bidding with a $10 million offer. May quickly retorted with his $35 million bid.

    Cangiano and two of his business partners then huddled together in front of the courthouse steps for a bull session. Whispers of $38 million to $40 million escaped from the huddle, but Cangiano emerged from the group and put an end to his bidding.

    May was joined by several Miller & Smith executives – all in suit shirts and slacks – who showed little emotion at their win. May declined to comment on One Loudoun’s future, but did say the plans for the property remain the same. A full report on their future plans will be released in October and will include a timetable for the project, he said. He declined further comment.

    Ground breaking for the site was in 2009. According to One Loudoun’s website, the property’s commercial and retail buildings were to be built the same year. Residential units were expected at the end of 2010. However, the site remains untouched. 

    In their application, the developers pledged the construction of Steuart W. Weller Elementary, which opened in September 2008, ball fields, and the four-lane extension of Russell Branch Parkway. The $10 million four-lane extension, which connects Loudoun County Parkway to Ashburn Village Boulevard, opened in April.

    Although Cangiano quickly gave up his bid, he didn’t give up hope that he will one day be One Loudoun’s owner.

    He said he has learned from past dealings not to bid against the property’s note owner because they have the advantage. However, in three to five years, when the economy approves, he plans to ask Miller & Smith if they would be willing to sell the property outright because “the location is spectacular and the concept is great.”

    Before departing, May and Cangiano shook hands.

    “Do you want to sell it?” Cangiano asked May.

    “I don’t think I want to sell it,” May said. Adding, “Call me.”

    Staff Writer Crystal Owens contributed to this report.
    Contact the writer at .(JavaScript must be enabled to view this email address).

    Comments

    “”“”“”“”“”“”“”“”“”“"So regarding the stupid comment above regarding cutting the school budget by $50 million, if you don


    Cangiano does not and will not have the $$ to buy One Loudoun. I think he was just there for kicks. Do you really think his business partners trust his judgment considering his questionable Wheatlands purchase?


    So regarding the stupid comment above regarding cutting the school budget by $50 million, if you don’t like the budget, you can leave the county.  The rest of us are willing to invest in our future versus the short sighted cuts in taxes to benefit one person.  If you can’t afford the taxes in this county, move to Texas.  What a moron…


    $35m is barely enough to cover what transpired under the table at the LC Board of Supervisors’ vote on this issue, originally.
    Some one ought to invoke the Rico Statute and tap these guys’ phones.


    The rest of the story:

    you said that extremely well


    So here’s the “rest of the story”:

    M&S already owned the loan - they bought it from Goldman prior to the foreclosure auction and they foreclosed on themselves to record new partners. 

    The real price was not $35M, which simply goes from one pocket to the next, it was the price to buy the loan which surely much more than $35M, but like so much of this story was never reported.

    And if you’re angry about this, you can do the same with your home - just get divorced and buy your loan from the bank, and then foreclose on yourself and so your ex-spouse is no longer on the title.  Of course it would be tricky if other bidders were willing to pay more than the outstanding loan amount which you already bought.


    Seriously, did you just ask that again?  The DEBTOR is not the bidder.  The debtor was One Loudoun LLC, the bidder was Miller & Smith.

    I don’t think LTM did a very good job of explaining the deal, and in fact perhaps misled readers, but still…


    Hmmm, I want to be able to default on a loan and then buy it back for less…how can I do this?


    One Loudoun LLC was the debtor, Miller & Smith was/is the developer.  There’s a difference.  Miller & Smith didn’t owe the money, but stood to lose a lot if the project doesn’t move forward.


    Alby

    I am guessing the bank most likely did not want to work things out like they first promised.

    So now those idiots at the bank that they thought we are so powerful now just lost a ton of money for the bank when they could of done much much better.  Miller & Smith will pay far more taxes in this county then fools putting them down. If you want money to pay for things in this county these are the people that can do it. Not the homeowner. I still say cut 50 million out of next years school budget and if you don’t like it move. Enough is enough of the entitlement class homeowner. That wants a private school education for their kids on the backs of the hard working tax payer that can’t afford it anymore.


    just a thought -  ...because you didn’t get a degree from Harvard Business School in how to screw people with fancy accounting tricks.  lol

    I’m sure if we all knew how to default on our mortgages and then buy them back for 4x less, we’d all be living the high life.


    brilliant business move


    how come business can buy back the property they defaulted on for less, but families cannot do that with their homes??!!  How ridiculous!


    What happened to the original $125 million that was funded by Goldman Sachs? I bet Miller & Smith defaulted on purpose. Now they can re-finance at much more favorable terms.


    SWEET, the suits of mules behinds

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