A federal bankruptcy judge on June 21 approved the sale of a large home and lot on one of Raleigh’s premier streets after a dramatic hearing at the old federal post office on Fayetteville Street.
Judge Dave Duncan approved the recommendation of bankruptcy trustee Walter Hinson to sell the property for $2.1 million.
The buyer is listed as 205 Cascade LLC of Creedmoor Road in Raleigh, and Anuj Mittal is listed as the manager.
The property at 2529 White Oak Road includes 2.97 acres and a 3,446-square-foot home built in 1938. The property has a tax value of $2.16 million.
The home had been owned by Celeste Broughton.
On Dec. 15, 2017, U.S. District Judge Martin Reidinger approved the trustee’s right to sell the land to pay off debts.
White Oak Road is one of Raleigh’s most-desired addresses, and homes often list for more than $2 million.
Attorney James Angell of Raleigh’s Howard, Stallings, From, Hutson, Atkins, Angell & Davis represented the buyers. And a man and a woman were there, who Angell confirmed were the buyers, but they declined to give their names or discuss their plans for the property.
Hinson said he was initially put in contact with the buyers through a Charlotte realtor.
Blount Williams, the chairman and CEO of Alfred Williams and Co., was at the hearing and had previously put forth an offer of $2.2 million. However, Hinson told the court that offer had been rescinded.
Williams told Triangle Business Journal, “My goal was to restore the house.” But he said after a tour, he found “that was not feasible. That’s the reason I pulled out.”
Hinson told the court the $2.1 offer from 205 Cascade was superior to a $2 million offer and recommended the higher number.
Broughton appeared at the hearing and fought to retain her longtime home. She said an Oct. 2 order on the case was “just filled with massive fraud” and should be voided. Duncan told her that would depend on an appeal to the U.S. Fourth Circuit Court of Appeals.
She also cross-examined Hinson, although Duncan several times stopped her questions for going beyond the scope of the issue.
“Mrs. Broughton, you are going too far afield now,” Duncan said.
“I am sorry this doesn’t appear relevant, but it is,” she replied.
“No, it isn’t,” Duncan told her, reminding her to stay with a specific line of questioning.
Duncan eventually ended the questions, saying, “Mrs. Broughton, you are perilously close to being held in contempt of this court. Your cross-examination of Mr. Hinson is concluded."
Duncan approved the request to sell the property to 205 Cascade LLC and also ordered that a rival bid of $2 million could be accepted if the 205 Cascade LLC bid fell through for any reason. “That’s the order of the court,” Duncan said.
Hinson told Duncan he expects closing within 75 days.