Maricopa Manor Business Center in default

When they arrived at work On April 9, tenants in the Maricopa Manor Business Center were greeted with notices on their doors announcing a pending trustee’s sale of the complex.

According to court documents, Maricopa Manor Business Center, LLC, which is owned by Maricopa Vice Mayor Edward Farrell and his mother, Alma Farrell, has defaulted on three loans with Great Western Bank, prompting the sale of the complex at public auction on June 14.

The approximately 19,500-square-foot office complex is located on the northwest corner of Garvey Road and John Wayne Parkway and is, ironically, anchored by a 2,500-square-foot Great Western Bank branch. Its tenants include Acts Christian Center, Bright Minds Preschool, Desert Sun Performing Arts, Electrical District No. 3, InMaricopa.com, Maricopa Monitor, Puppy Love Pet Grooming, Trafelet Accounting Group and Western Land Planning.

According to Edward Farrell, the bank initiated the sale process because the 2010 property taxes had not been paid, in violation of the loan agreement. Farrell said the two sides had worked it out, the taxes will be paid, and “this isn’t going to a trustee’s sale.”

However, the bank filed a verified complaint in Pinal County Superior Court on March 23 asking the court to appoint a receiver to take immediate control of the property. That action, if approved at a May 23 hearing, would permit the bank to ensure all revenue collected from tenants is used to pay normal operating expenses and the bank’s loan.

According to the verified complaint, Maricopa Manor Business Center LLC defaulted on three different loans, totaling approximately $3.9 million, by failing to make payments, failing to pay real estate taxes and assessments, and failing to pay a $15,000 insurance premium.

According to the complaint, in addition to Maricopa Manor Business Center, LLC’s obligations on all three loans, the Dunn Family Revocable Living Trust guaranteed all the loans and the Estate of Dorothy J. Dunn and the Farrells are guarantors of one of the loans, which has a balance of about $870,000.

In addition to the past due balances, Maricopa Manor and the guarantors face legal fees, late fees and interest that has been accruing at a rate of almost $2,000 a day since March 9.

Some tenants are concerned about the impact the potential sale of the building would have on their business.

“I am concerned,” Desert Sun Performing Arts owner Ceylan Gentilella said. “I am not quite sure how this process works, and I don't have much information right now. We are planning to expand our school and are wondering how this situation will affect our goal.”

Story and photo by Ash Friederich