Spector Gadon Rosen Vinci P.C. Managing Member Daniel J. Dugan has successfully brought to a close a situation weighing on a Montgomery County, Pa. country club following a sheriff sale action that formalizes lender ownership of the 115-acre property.
The sheriff sale was an effort to dispose of any outstanding claims and debts, and remove any leins, against Lulu Country Club, which is located in Glenside and features an 18-hole Donald Ross-designed golf course. It also formalizes ownership of the property by lender LT-Lulu LP, which is represented by Dugan.
“All of the claims and debts are wiped out and LT-Lulu will continue to operate the club,” said Dugan. “From a members point of view, it will be a seamless transition.”
The underlying real estate tied to the club did not sell at a Dec. 2 auction arranged by the Montgomery County Sheriff’s office, for which a $14.98 million minimum bid price was set — the amount of debt on the property. No bids were made to buy it at the auction. It was the first time the Montgomery County Sheriff’s Office sought to hold its property sales online.
LT-Lulu now becomes the owner, which will be finalized when it receives the deed by January 2021.
Mortgage foreclosure proceedings led to Lulu Country Club’s situation. The original lender to the club was Summit Bridge National Investments. It initiated and obtained a mortgage foreclosure in Montgomery County Court of Common Pleas in March 2015 when the club was struggling and defaulted on payments.
A limited liability corporation and LT-Lulu, which is a related entity, purchased from Summit Bridge the underlying mortgage, note and judgment and pursued the sheriff sale as part of the transfer process.
The club, which was chartered in 1912, is thriving and is one of the few in the region to have a waiting list for new members.
Lulu JJR LLC has a 20-year lease on the property and will continue its role overseeing management of the club and its operations.
Dugan has been in practice since 1977, with Spector Gadon Rosen Vinci since 1982, and a member of the firm since 1987. He is managing member and also a member of the firm’s Executive Committee. He concentrates his practice in trials and appeals involving all manner of commercial and business disputes, and he has extensive experience litigating before state and federal courts nationwide, including bankruptcy courts and Orphans Court.
Spector Gadon Rosen Vinci P.C. has represented clients nationally and internationally for 45 years and provides counsel and expertise across the entire spectrum of legal practice, from complex litigation to sophisticated transactional and corporate matters. The firm has offices in Philadelphia, New Jersey, Florida, New York and Atlanta.
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