The Henderson Ramada Inn is on the auction block.
After about two years of litigation, Henderson Circuit Court documents reveal the vacant building on the U.S. 41 Strip will be auctioned by the Henderson County master commissioner at 10:30 a.m., Sept. 9, in the Fiscal Courtroom on the third floor of the Henderson County Courthouse.
According to the Notice of Judicial Sale signed by Master Commissioner Kenneth Kasacavage, the auction is taking place to satisfy a Henderson Circuit Court judgment that found the owners of the property, DNL Properties, owe Field & Main Bank $910,245.88.
That number comes from a summary judgment signed by Henderson Circuit Court Judge Karen Wilson. The judgment came after DNL Properties was found in default on two separate loans from the bank.
In Wilson’s summary judgment, the judge ruled that the defendants are indebted to the bank for $735,613.59 on the first loan and $161,013.32 on the second loan. The total debt also includes attorney fees, postage expenses, filing expenses and master commissioner pre-sale expenses, according to court documents.
According to Wilson’s summary judgment, the property “should be sold free and clear of any and all liens and claims to the parties to this action.”
In addition to the DNL Properties LLC, also named in the suit are individuals Kaushikkumar D. Patel, Niral K. Patel and Sureschkumar Patel, all of Georgia.
An agreement for a promissory note for $1,222,309.06 was signed by the parties on July 9, 2014, with monthly payments of $9,553.05 that were scheduled to begin on Aug. 9, 2014, according to court documents.
The parties came to an agreement on a second loan on July 22, 2022, with monthly payments of $6,364.50 beginning on Feb. 22, 2023, according to court documents.
Field & Main, in its arguments in court documents, said that DNL Properties has failed to maintain the Ramada Inn in tenantable condition and that the property has ceased to be used, operated or mortgaged as a working hotel as required by the mortgages.
The Henderson County Property Valuation Administrator website shows that the 5.45-acre property has a total taxable value of $1.746 million.
PVA records also show that the property’s value is decreasing. The website records that the last time the property was sold in 2014—to DNL Properties—it went for $1.94 million. Before that in 2007, the property was sold for $3.4 million.
Other interesting details related to the property are that its first story encompasses 49,131 square feet, and its second floor is 33,619 square feet, according to the PVA site. The hotel has 108 rooms, according to the PVA’s site.
Much of the decreased value might be attributed to the age of the structure, which was built in 1973.
Davis Hunter, a local attorney who took over representation of Field & Main in the spring, said from his understanding the hotel has been closed for around two years.
That’s evident for anyone who has driven by the Ramada in that span. On many days, this reporter observed a couple of cars parked outside the building. Recently there have been none.
Though DNL Properties owe more than $900,000 to Field & Main, Hunter said “we expect the property go for more.”
Before the master commissioner can conduct the auction, two appraisals must be done on the property, Kasacavage said.
That’s important because if the property doesn’t go for at least 2/3 of its appraised value, then the owners have the right of redemption, which would give them the right to reclaim the property if they can come up with the money, Kasacavage said.
If, though, the auction brings in an amount greater than 2/3 of the appraised value, then the winning bidder gets it without any liens on the property, Kasacavage said.
If the auction results in a sale more than 2/3 of the price but still lower than what the defendants owe the bank, Kasacavage said Field & Main could attempt to recoup the remaining money owed by filing for a deficiency judgment, which allows lenders to collect additional funds when a sale doesn’t reach the amount owed.
Though the PVA’s taxable value is almost double the $900,000-plus that the defendants owe, a buyer will probably note the work that will need to be done to rehab the property. That’s evident from Green River District Health Department reports and supporting photos since January 2024, which show the Ramada has been dogged by maintenance issues the past couple years.
In January 2024, a busted pipe sent both the Henderson Fire Department and a local health department representative to the hotel. The busted pipe resulted in parts of the building being flooded. Another report details an ongoing water leak and damaged ceiling tiles at the hotel.
Subsequent inspections revealed more maintenance issues, including a leaky roof, which had recently been replaced, over the hotel’s restaurant. There were also plumbing issues, heating deficiencies and air quality concerns.
Another inspection revealed continued water infiltration to the hotel which caused other problems such as mold. Other problems include small maintenance issues in individual rooms, broken HVACs and missing smoke detectors, among others.
The inspection reports included more than 200 photos documenting problems, some extreme, at the hotel over the past two years.
The presence of mold is another of the maintenance and upkeep issues at the Henderson Ramada Inn that was recorded in inspection reports from the Green River District Health Department-Henderson since 2024. (Photo from Green River District Health Department reports)
