A Denver development firm is working a deal to buy six houses in University Hills – including two contaminated with methamphetamine – from a receiver appointed to sell off assets belonging to embattled real estate investor Gary Dragul.
According to court filings, Dragul bought the properties at 2166, 2176, 2186 and 2196 S. Ash St., as well as 2175 and 2195 S. Bellaire St., for $2.7 million with plans to demolish the houses and build 27 townhomes. Now Denver-based Sognare Development has a contract to buy the roughly 1-acre parcel for $3.1 million.
Sognare could not be reached for comment.
Dragul is facing 15 counts of securities fraud for allegedly selling more than 100 percent stakes in his real estate investments.
Dragul has not paid taxes on the properties for two years, according to court filings. A receiver is a court appointed intermediary who tries to collect money for creditors and investors. According to court documents, the Dragul properties have first and second mortgages, and a mechanic’s lien, that total around $3 million. That means investors/creditors are unlikely to get anything from this sale.
And the properties are falling into disrepair, according to legal filings.
“On July 5, the Denver Police came to the Property and removed squatters from the 2166, 2176 and 2186 Ashe Street Properties. Two of those houses are contaminated with methamphetamine,” court documents say.
Marcus & Millichap’s Cory Gross and Jake Shirek are brokering the deal for the receiver and said the properties are in disrepair. But the location has attracted interest from townhome and apartment developers.
“This is a great transit-oriented development site one block from Colorado and Evans zoned MU3 allowing for development of urban housing, duplexes, row homes and apartment buildings,” Gross said. The offer needs to be approved by a judge before it can close.
Gross previously sold Dragul’s Happy Canyon Shoppes for $24.2 million and a former Village Inn in Centennial for $1.2 million as part of around $100 million in property around the country being liquidated.