|By Bill Freehling, The Free Lance-Star,
Fredericksburg, Va.McClatchy-Tribune Regional News
July 15, 2011--The unfinished Best Western hotel being developed at 5217 Mudd Tavern Road in Spotsylvania County is heading to a foreclosure auction.
According to a foreclosure notice that ran this week in The Washington Post, the property will be auctioned off at 9:30 a.m. July 25 in front of Spotsylvania Circuit Court.
Work has long been stalled at the hotel, which is near the Thornburg exit off Interstate 95. The developer is Octain Kim Development LLC, whose address is listed as Annandale. BB&T is the lender, according to the foreclosure notice.
Many hotel projects have stopped midstream amid trouble obtaining financing, and others have never gotten off the ground. Construction work just recently resumed at a long-stalled Candlewood Suites at the Massaponax exit off Interstate 95.
The Best Western in the town of Orange is 95 percent complete, but a lack of financing has prevented its completion. The Mumford Co. is selling the Orange property for Virginia Community Bank for $3.3 million. Company principal David Mumford says a sales contract is being negotiated.
The Best Western building in Thornburg is about 59,000 square feet and sits on about 2.8 acres, according to Spotsylvania property records. It's assessed at about $4 million. Octain Kim Development owes Spotsylvania about $56,000 in back taxes and interest.
It's unclear whether the auction will occur as scheduled. Often a bankruptcy filing or last-minute deal postpones auctions.
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Copyright (c) 2011, The Free Lance-Star, Fredericksburg, Va.
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