A Pittsburgh-based investor faces the loss of 10 properties -- most housing rental apartments -- in the city and nearby communities at a Dec. 1 Allegheny County sheriff's sale.
R.A.E.D. Investments Inc. of Pittsburgh and Davin Investments Inc. are in default of mortgages valued in excess of $2.5 million, said James R. Walker, attorney for the Downtown-based law firm of Marion McDonough & Lucas, PC. Walker represents the mortgage holder, DB Midwest LLC.
DB Midwest prompted the sheriff's sale by filing foreclosure actions in Common Pleas Court.
Davin Gartley, who heads both investment groups, could not be reached for comment. His attorney, Alexander Bunson of Alexander B. Bunson & Associates, also could not be reached.
Seven of the 10 properties are in the South Side. Others are in Dormont, Swissvale and Penn Hills.
Walker said Gartley approached him over the last year or so with proposals to sell some or all of the properties to write down the mortgage debt.
"I told them my client would consider the offer, but R.A.E.D. never was able to bring a sale to us," he said. R.A.E.D. said it would try to refinance the debt, but has not yet done so, he said.
Walker said he expects a third party investor may bid successfully on some or all of the properties at the sale. He said if the bids are not high enough, he expects DB Midwest to take over ownership at the sale.
Tenants in the properties may not be affected by the sale, he said. DB Midwest, through Amresco Commercial Finance LLC, its loan servicer, will continue to operate the units as rentals until they are resold to other investors.
Among the properties listed for sale in the South Side are those at 86 S. 11th St., 1721-23 Edwards Way, 1117-19 Freyburg St., 900 PJ McCardle Roadway, 2104 Wharton St., 2617 Stella St. and 133 S. 22nd St.
Other properties owned by R.A.E.D. include a three-story, 18-unit apartment and two four-unit townhouses, at 3541 Laketon Rd. in Penn Hills, and an apartment building in Dormont, at 1344-46 Tennessee Ave.
The Swissvale property, at 1906 Monongahela Ave., is a building with retail on the lower level and apartments above.
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