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Developer of Royal Plaza Condo Building in Downtown Boise Sued Over loan
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Written by Muriel J. Gibson   
Tuesday, 20 December 2011
A mortgage company is suing the developer of the Royal Plaza condo building in downtown Boise over a promissory note it says is in default.

Intervest Mortgage Investment Co. Inc. on Sept. 9 sued R.S. Hosac Inc. and its principals in Ada County Fourth District Court in Boise, seeking more than $5 million including interest and fees. Intervest, a Sterling Savings Bank subsidiary, claims it is owed the money even after the developer’s Chapter 11 bankruptcy reorganization and subsequent sale of several units.

The suit also names as defendants Nathan W. Hosac and his wife, Heather L. Hosac; and Robert S. Hosac, and his wife, Kristine H. Hosac. None could be reached immediately. No attorney for the defendants was listed in court records as of early Sept. 15, a court employee said.

Royal Plaza LLC in early July 2008 delivered to Intervest a $7.8 million note secured by defendants’ commercial guaranties as well as a December 2005 deed of trust, assignment of rents and security agreement. Defendants failed to pay the balance by the note’s early April 2009 maturity date and after Intervest sent a default notice the next month.

Royal Plaza LLC in early December 2009 filed for a Chapter 11 bankruptcy reorganization.

“The Plan of Reorganization was partially successful. However, certain portions of the real property were not sold or transferred under the Plan, and defendants have not made the plaintiff whole,” Intervest’s complaint says.

The reorganization included an auction of Royal Plaza units in May 2011. Later, four commercial units and two residential units were sold for a combined $1.5 million, reducing the amount owed to nearly $5.79 million including principal, interest, late charges and fees, the complaint said.

None of the live, public auctions of downtown Boise condos benefited developers, said Bryant Forrester, an agent with Urban Concepts at Homeland Realty, Boise. Auctioned units sold below current market and appraised values, he said.
Last Updated ( Tuesday, 20 December 2011 )