The Lafayette Property? What a JOKE!
The Lafayette property, for those that don't know, is a 3br/2ba house.
Beechwood bought it a while back, in 2008/2009. They attempted to sell it for $489,000 numerous times, with no one biting. They're now renting the property to a district court judge. It's not a building. It's a house. That Beechwood couldn't sell.
So what do you do with a property you're underwater on? Sell it to a newly created LLC, make your money back, and let the LLC and the shareholders take the loss.
What hasn't been revealed are the terms of the sale to Redhawk. Redhawk has no cash. Therefore, the guess is that the payment was made using the newly created shares (common & super preferred).
I'm willing to bet something similar happened with the tiny share of that hotel project as well. Klug is getting toxic properties off his own books & collecting something in return, that he couldn't get anywhere near in real dollars from the public.
