Boulder court permits condo-complex foreclosure sale to go forward

BOULDER — A foreclosure sale on condominium units at 1002 Walnut St. in Boulder will be permitted to go forward on Wednesday, despite the owner’s request to have a court impose an injunction on the sale.

George Williams LLLP, with headquarters at 6700 Lookout Road in Boulder, filed a request for injunctive relief Monday in an attempt to stop the sale on Wednesday of the property. The company signed a promissory note, secured by a deed of trust, on Dec. 11, 2020, for more than $5.7 million. The lender, 1002 Walnut Investments LLC, a company with headquarters in Miami, Florida, filed a notice of default on the loan a year later.

The George Williams company does not dispute the loan, none of which has been repaid  according to county public trustee records, or that it is due. Its court action attempted to change the manner of the sale.

The property includes multiple buildings, five of which are collateral on the loan. George Williams said in its filing that the overall property is worth more than the loan. It wanted the public trustee to sell buildings sequentially until the debt had been met. The lender, however, in a response also filed Monday, said that selling properties one by one would diminish the potential of sale, because buyers wanting the entire property that is held as collateral would have to win multiple auctions instead of just one. The lender cited the loan documents that gave it the authority to determine the manner of sale. The lender also objected to the last-minute court action, when it filed its notice of election and demand Feb. 14, 2022. 

Public trustee records show that George Williams hoped to cure the debt; a notice to that effect was filed May 31. Total amount to cure the debt would have been $6.6 million after interest and costs were added.

District Court Judge Patrick Butler filed an order, also Monday, permitting the trustee auction to go forward as planned. 

“The court is troubled by the timing of the motion for a TRO [temporary restraining order] 2 days before the foreclosure sale. Defendants are entitled to collect from the foreclosure sale the extent of the debt owed to them. Any amounts above that shall be paid into an attorney’s trust account or with the clerk of court pending other orders from the court. The TRO is denied, but defendants may only collect the amount that they are due.”

George Williams is represented by Robert Podoll of Podoll & Podoll PC, Greenwood Village; 1002 Walnut Investments is represented by David Laird of Moye White LLP in Denver. Neither attorney responded to requests for comment. 

The case is George Williams Limited Liability Limited Partnership v. 1002 Walnut Investments LLC. It was filed in Boulder County District Court as 2022cv30387. 

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