Thirteen Dannys Family Car Washes Noticed for Trustee Sale

By: Paul Dionne & Hadden Schifman | Vizzda.com

Legal entities formed by Danny Hendon of Danny’s Family Car Washes were noticed for trustee sale yesterday on thirteen properties spread across the Valley. These foreclosure filings come more than four years after Danny’s Family Companies and various entities entered bankruptcy in March 2010. Trustee sales are scheduled for September 16^th, 2014. Snell & Wilmer is trustee.

The collection of properties were originally secured under six notes with three different banks: Comerica Bank, First National Bank of Arizona, and M&I Bank; but all of these notes were acquired by Verde Investments prior to yesterday’s filings. Verde Investments is a real estate holding company for DriveTime chairman, Earnest Garcia. The properties, original lenders and the manner in which the properties are held are delineated in the table below:

Property	Address	Location	Status	Original Lender
Danny's Family 83rd Ave Union Hills	18736 N 83RD AVE	N/NWC 83rd Ave & Union Hills Dr	Fee-Simple	Comerica
Danny's Carwash Raintree 101	14717 N NORTHSIGHT BLVD	W/NWC Loop 101 & Raintree Dr	Fee-Simple	M&I Bank
Danny's Family Desert Ridge	21001 N TATUM BLVD	SEC Tatum Blvd & Deer Valley Rd	Lease-Hold	Comerica
Danny's Family HappyValley I-17	2470 W HAPPY VALLEY RD	E/SEC I-17 & Happy Valley Rd	Lease-Hold	M&I Bank
Danny's Carwash Scottsdale Kierland	15515 N SCOTTSDALE RD	N/NEC Scottsdale Rd & Greenway Hayden Lp	Lease-Hold	Comerica
Danny's SanTan Village Gilbert	2870 S MARKET ST	NWC Market St & Santan Village Pkwy	Fee-Simple	FNBA
Danny's Family Camelback 20th St	1958 E HIGHLAND AVE	S/SWC Camelback Rd & 20th St	Lease-Hold	Comerica
Danny's Family 84th Ave & Bell	8369 W BELL RD	SEC Bell Rd & 84th Ave	Fee-Simple	Comerica
Danny's Family 3rd Ave & Bell	315 W BELL RD	SWC Third Ave & Bell Rd	Fee-Simple	Comerica
Danny's Crossroads Gilbert	4027 S GILBERT RD	SEC Gilbert & Germann Rds	Lease-Hold	FNBA
Danny's Family Scottsdale Bell	16610 N SCOTTSDALE RD	16610 N SCOTTSDALE RD	Fee-Simple	Comerica
Danny's Family Carwash PV Mall	12010 N TATUM BLVD	S/SWC Cactus Rd & Tatum Blvd	Lease-Hold	Comerica
Danny's Tempe Marketplace	2090 E RIO SALADO PKWY	E/NEC Rio Salado Pkwy & McClintock Dr	Lease-Hold	FNBA

The largest of these notes--$30m secured by eight of the properties and originally issued by Comerica Bank—was first acquired in 2011 by Atayala Capital Management as part of their Special Opportunities Fund. On March 13^th, 2014 Verde Investments acquired the note with the aid of $19m in financing from Midfirst Bank, secured by the underlying pool of loans. As part of the reorganization, the note was restated in 2011 to reduce principal to $26,505,000.

The now-defunct First National Bank of Arizona lent $20,192,150 in three construction notes during 2007- secured by a one property each. Following the 2008 collapse of First National Bank of Arizona and its affiliate, First National Bank of Nevada, the loans were acquired by the FDIC as receiver and sold in a Structured Asset Sale to Sorenson Group Management of Utah. Verde Investments was able to acquire those notes from Sorenson Group in April of this year; described in the assignment as a $15m and $419,741 re-stated notes.

M&I Marshall and Ilsley Bank loaned two construction debts of $4.516m and $7,256,138 in 2005, secured by two of the thirteen. In 2010, M&I Bank was acquired by Bank of Montreal as parent to BMO Harris Bank. Following the merger, BMO Harris sold the two notes in October 2013 to Dallas-based Hudson Advisors--an affiliate of Lone Star Funds. Verde acquired the notes from Hudson in May of this year.

Of the thirteen properties noticed yesterday, seven are held as leasehold interest and six are fee simple. VIZZDA has already tracked one of the assets transacting to a new owner-- Mr. Bill Levine and Mr. Jerry Simms acquired the 15515 N Scottsdale property near the Kierland on Friday for $6.5M. In this case, they acquired the ground-lease interest from the original lessors- the Notice of Trustee sale still secures improvements.