Properties owned and controlled by bankrupt residential builder NJ Affordable Homes Corp. (NJAH) in Woodbridge will be put up for auction. Chicago real estate auction company Sheldon Good & Company Auctions NorthEast and real estate firm DJM Realty in Melville, N.Y., will handle the sale of the 340 properties from September 29 through October 1 at the Meadowlands Convention Center in Secaucus.
The Securities and Exchange Commission went to court last September to freeze the assets of NJAH and its president Wayne Puff. The SEC alleged Puff and the company sold at least $40 million notes in unregistered offerings in a Ponzi scheme to more than 490 investors across the country. NJAH was liquidated under Chapter 7 of the bankruptcy code. The U.S. Bankruptcy Court District of New Jersey in Newark granted the trustee a motion to sell all 340 properties held by the company.
From PR Newswire:
Sheldon Good & Company Auctions NorthEast, (http://www.sheldongood.com) the nation’s premiere auction and brokerage company, in a joint venture with DJM Realty, a national real estate disposition firm based in Melville, New York, has been retained by Charles M. Forman, the chapter 7 trustee appointed for NJ Affordable Homes Corp. (NJAH) to sell at auction 340 properties owned and controlled by NJAH
The auction venue is being announced for September 29th, 30th and October 1st at the Meadowlands Convention Center in Secaucus, NJ.
Mr. Forman, of the law firm of Forman, Holt & Eliades, LLC, said: “The auction sale of the NJAH portfolio is the most efficient and cost-effective method of generating a substantial pool of funds from which those who were hurt by this massive fraud can be compensated.”
Mr. Forman added: “Private investors, conventional lenders, other parties and the community as a whole have been victimized by the scheme. We believe that the auction method devised by this real estate team will result in the expeditious sale of these properties thereby ultimately benefiting all concerned, including the investors, lenders, tenants and their neighborhoods.”
Jeffrey Hubbard, Executive Managing Director for Sheldon Good & Company Auctions NorthEast, LLC, said: “This will be the largest residential auction thus far to be conducted in New Jersey, and most likely, in the United States. This auction will have something for everyone: the builder, homeowner, developer and investor. The portfolio of properties includes 80 single-family homes, 78 two-family homes, 96 three-family homes, 19 four-family homes, 2 six-family residences, 57 parcels of land, and 8 commercial properties. This extensive portfolio includes property in every county in New Jersey except two. 195 properties are located in the Essex
Mr. Hubbard said that all properties would be sold absolute regardless of price, free and clear of liens, subject to the approval of the United States Bankruptcy Court District of New Jersey presiding over NJAH’s bankruptcy case.