Thursday, May 20, 2010
2402 4th Avenue South got Pami-KO'd
Post and photo by the Hawthorne Hawkman
When I was in college, one history professor who taught a class on eastern European and central Asian history was particularly troublesome for me. I remember probing for clues about the final exam and asking, "What particular topics should we know well in preparation for the final?" He responded dryly: "Well, everything." And he wasn't joking. I didn't do too well on that final, busting my tail for a B-minus and considering myself lucky.
But I think of that professor's attitude in relation to the housing mess that Paul Koenig (pronounced Kay-neg) has inflicted upon north Minneapolis. Koenig should be in jail or at least face civil charges so steep that they'll bankrupt him. If neither of those things happen, then we on JNS are dedicated to examining every last detail of his cluster bomb of foreclosures so that this does not happen again by Koenig or anyone else. What's most important in that regard? Well, everything.
So when I have the chance I've been stopping by the Hennepin County Government Center to research Koenig/Pamiko/Marklee properties. Eventually I'll do a comprehensive post of what I've found, but as I come across particularly interesting histories that are extensive enough to merit their own post, those will be published. One such scenario presented itself at...
...2402 4th Avenue South. This is a multi-unit structure that has been part of a Koenig mess since at least 2004.
On July 23, 2002, David Kohlenberger, the other half of the Dream Homes Development LLC and DPK Properties LLC (David, Paul, Kohlenberger/Koenig. These guys are real creative with their LLC names) purchased it with a $465,200 mortgage from American Summit Mortgage Corp. I thought for sure American Summit would have imploded, but I guess not.
On July 21, 2004, Kohlenberger/Dream Homes Development LLC took out a mortgage from Guyer's Superior Walls in the amount of $147,393.84. Koenig and his buddy must not have made a single payment, at least initially, because on October 20, 2004, GSW filed an intent to foreclose.
On December 15 2004, A $75,000 lien was filed against the property by Morrison, Fenske, and Sund. Eighteen parcels were listed, but only legal descriptions were given. This was likely a part of the court case regarding fraudulently inflated incomes of many DHD/DPK properties.
On February 16 2005, MERS (trust me, you don't want me to try and explain what MERS is right now) filed an intent to foreclose on the property, listing David Kohlenberger as the owner.
Despite the ever-changing list of owner entities (Kohlenberger to DHD to DPK), I did not see a formal transfer of ownership until February 17 2005, when DPK filed a quitclaim transferring ownership to Marklee Construction, another known Koenig LLC. On March 1 2005, there was a Sheriff's levy filed against this property. I had never seen such a document before, and neither had the helpful employees at the desks. But as far as I can tell, this essentially says, "Gee whiz, there seems to be a lot of fishy title transfers happening here at the same time as a court case that alleges fraud. So how's about we just tell you all to keep DPK LLC as the owner for now?"
On April 12 2005, Franklin Bank did a $750,000 loan to Marklee Construction for the following properties, including 2402 4th Ave S:
3434 6th Street N
1418 11th Avenue North
1612 25th Avenue North
2101 Bryant Avenue North
2714 Bryant Avenue North
2722 Bryant Avenue North
2938 Bryant Avenue North
2616 Cedar Avenue South
2822 Colfax Avenue North
611 Edmund Avenue, St. Paul
3009 Emerson Avenue North
4858 Emerson Avenue North
2003 James Avenue North
1028 Knox Avenue North
1030 Knox Avenue North
1032 Knox Avenue North
1034 Knox Avenue North
1317 Knox Avenue North
2407 Lyndale Avenue North
3008 Lyndale Avenue North
1012 Morgan Avenue North
1312 Morgan Avenue North
625 Newton Avenue North
2324 Queen Avenue North
1717 Thomas Avenue North
On June 8 2005, the Franklin Bank mortgage was recorded as satisfied, although it is unclear if that referred to the $750,000 as a whole or simply the portion that applied to 2402 4th Avenue S.
On June 17 2005 the sheriff's levy was discharged.
On November 11 2005, Chicago Title Insurance Company filed a release of the $75,000 mortgage from Morrison, Fenske, and Sund to DPK LLC. The lawyers must not have been too happy about that, because on December 28 2005 they filed a request to be included as lien holders in any foreclosure proceedings.
On February 8 2006, Guyer Superior Walls' intent to foreclose was discharged.
Now if you're still reading and you're not confused YET, this should help get you there. A court order from a filing made by MERS says essentially this: "Hey, remember, ah, 'member how last year, we foreclosed on David Kohlenberger? Remember that? Well, none of those crazy title transfers really matter. We kind of, you know, still OWN this property. And we want it back."
So then Pamiko Properties LLC picked up the property from MERS and New Falls Corporation (the entity MERS was representing) on a quitclaim deed for $450,000. This happened on February 26 2006, and on March 3, a mortgage from US Federal Credit Union was taken out against the property in the amount of $602,250.
Then on September 19 2008, Aspen Funding LLC placed this property in a bundle of properties with their $500,000 loan that they made to Pamiko. And Pamiko must have really needed that half-mil because on November 5 2008 US Federal Credit Union filed an intent to foreclose.
The sheriff's sale occurred on February 6 2009, but Aspen must have missed SOMETHING, because they modified the loan on May 20 2009. They were also late to the game, filing their own intent to foreclose on October 26 2009. Sorry guys, Pamiko's all out of money.
On February 4 2010, a court order mandated the ownership of this property be transferred to US Federal Credit Union.
From the documents available, it's not entirely clear what happened to the money that was paid out on loan transactions that were later reversed. It's not known at this time if Guyer's Superior Walls or Morrison, Fenske, and Sund were paid for their interest in the property. And why did Pamiko pick up the property for $450,000 and then a week later get a loan for $150,000 more?
What is clear is that this blog will not rest until Paul Koenig is held accountable for the extensive, almost incomprehensible harm he has inflicted upon north Minneapolis.