Last edited 1:39 p.m., Jan. 2, 2018
Four homes owned by embattled landlord Christopher Gatley’s 417 Rentals LLC are scheduled for foreclosure sales next week.
The homes are the latest in a series of foreclosures after 417 Rentals filed for Chapter 11 bankruptcy reorganization in August 2017. Bankruptcy proceedings are ongoing, with the company indicating in a Dec. 26 operating report it made gross profits of $119,766 in November, with operating expenses at $110,537, resulting in a net gain for the month of $9,229.
The latest foreclosure sales, according to legal-notices publication The Daily Events, are slated for Jan. 9. The homes at 2626 E. Elm St., 2628 W. Mount Vernon St., 2235 E. Battlefield Road and 515 N. Westgate Ave. have combined debt loads of $936,725, according to The Daily Events’ Dec. 31 edition. The homes are scheduled to be sold to the highest cash bidders at the south front door of the historic Greene County Courthouse, 940 Boonville Ave. The Daily Events publishes trustee’s sales notices after receiving information from the successor trustee attorneys in the cases.
In its initial petition last year, 417 Rentals listed 50-99 creditors, estimated assets of $1 million to $10 million and estimated liabilities of $1 million to $10 million, according to court records. Since then, at least a dozen homes have been foreclosed on.
In an amended reorganization plan submitted to the court on Aug. 10, 417 Rentals indicated it had loan balances at a dozen local banks. The combined fair market value of the properties is more than $32 million.
The plan included the number of 417 Rentals properties in the various banks’ portfolios, as well as their combined fair market and liquidated values. In alphabetical order, the bank figures are:
• Arvest Bank, 39 properties, $1.5 million fair market value, $1.04 million liquidated value;
• Bank of Bolivar, 10 properties, $1.3 million fair market value, $906,220 liquidated value;
• Bank of Missouri, 30 properties, $1.95 million fair market value, $1.3 million liquidated value;
• Great Southern, 43 properties, $1.8 million fair market value, $1.24 million liquidated value;
• Guaranty Bank, 51 properties, $1.7 million fair market value, $1.2 million liquidated value;
• Legacy Bank and Trust, 30 properties, $1.6 million fair market value, $1.1 million liquidated value;
• Mid-Missouri, 22 properties, $857,400 fair market value, $600,180 liquidated value;
• Old Missouri, 35 properties, $2.1 million fair market value, $1.5 million liquidated value;
• Simmons Bank, 41 properties, $1.8 million fair market value, $1.2 million liquidated value;
• Southern Missouri Bank of Marshfield, 33 properties, $1 million fair market value, $710,500 liquidated value;
• Southern Bank, 26 properties, $1.3 million fair market value, $886,060 liquidated value; and
• Systematic Savings Bank, eight properties, $712,000 fair market value, $498,540 liquidated value.
The plan in the August court filing also includes a pledge to improve 417 Rentals’ business model after a request from the city of Springfield.
“The new model includes new and improved procedures and business requirements directly addressing city response and property maintenance, inspections and preventive maintenance, maintenance practices, flow processes, designation of a city interface manager, leasing practices and tenant application and screening procedures, security, financial management, and data management practices and advertising and public image,” the court document reads.
417 Rentals has faced scrutiny on social media and in local news media for allegedly overcharging tenants and failing to make repairs, among other issues, Springfield Business Journal previously reported.
Gatley could not be reached for comment by deadline through 417 Rentals’ phone number or his bankruptcy attorneys at Kansas City-based Berman, DeLeve, Kuchan & Chapman LLP.
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