Week in Review: Real Estate News, Land Development Top the Stories – Business Journal Daily
YOUNGSTOWN, Ohio – Commercial home purchases topped business news for the week of April 5th, including one at the center of an ongoing legal battle.
California Palms Sold for $ 4 million at Sheriff’s Sale
The owner of the California Palms Addiction Recovery Campus appeals to the sheriff to sell the property to Los Angeles-based Pender Capital Asset Based Lending Fund for $ 4 million. Mahoning County Auditor documents show the sale closed on April 2nd.
Sebastian Rucci, owner of the center, claims the sheriff’s sale did not meet “multiple legal protections”. California Palms is still up and running and serving 90 customers long-term, Rucci said in an email. The drug and alcohol rehab center employs 48 people, he said.
Vidales LBF Capital buys 3 properties for $ 1.6 million
LBF Capital Group, led by local businessman Terrill Vidale, closed the purchase of three local properties for $ 1.6 million in the week before last. Properties include 8302 Southern Blvd. at Boardman and 6378 and 6402 St. Andrews Drive in Canfield.
The property on Southern Boulevard, near the intersection with McClurg Road, is nearly 21,000 square feet and is 3.25 acres. The driving range of the Tee Up Golf Center takes up most of the property. The building houses Grunau Co., American Karate Studios, Mink Financial Services and The Boardman News.
Together, the Canfield properties have 16 apartments and a carport behind each building.
City aims at East Side land for future development
The city of Youngstown is considering converting approximately 30 acres of the East Side to industrial green classification, which official figures say will increase the area’s competitiveness in attracting new businesses in this part of the city.
The land under consideration consists of almost a whole block along Albert Street and is bordered to the north by Republic Avenue, to the south by Kimmel Street and to the east by Atkinson and Bennington Avenues.
On Wednesday, the city council voted to submit the measure to the city’s planning commission. The move would expand the green industry designation on the west side of Albert Street.
“It’s an attractive location with access to the freeway,” said Hunter Morrison, the city’s planning advisor. “The ramp on Albert Street is right there.”
Two new lawsuits filed against Lordstown Motors
Lordstown Motors Corp. had two more class actions against it last week, bringing that number to four. The lawsuits allege that the electric vehicle maker committed securities fraud by misleading investors about its claims that it received pre-orders for its endurance pickup.
The first of the two lawsuits was filed in the US District Court for the Northern District of Ohio on April 2 on behalf of investor Sulayman Zuod. According to court records, Defendants Stephen Burns, CEO of Lordstown Motors, President Rich Schmidt, CFO Julio Rodriguez, and Michael Fabian, director of stamping operations, “conducted a market deception program and practice that artificially increased the prices of Lordstown common stock . “
The lawsuit also alleges that six company executives dumped their personal shares between October 22, 2020 and February 4, 2021 when they were at “artificially inflated” prices, including David Hamamoto, CEO of DiamondPeak Holdings Corp. ., which merged with Lordstown Motors on October 22, 2020.
The second lawsuit this week was filed on Friday in which investor Jesse Brury alleged to have purchased Lordstown Motors shares at “artificially inflated prices” between August 3, 2020 and March 17, 2021.
Specifically, the lawsuit states that Lordstown Motors failed to disclose that the company’s pre-orders were non-binding and that many potential customers did not have the means to purchase the vehicle.
Much of the allegations in the lawsuits stem from a malicious report by short seller Hindenburg Research on March 12, in which Lordstown Motors and some of its executives misrepresented non-binding letters of intent as “pre-orders” for Endurance pickup.
YBI part of the group awarded $ 703,000 to encourage innovation efforts
A regional partnership, which includes the Youngstown Business Incubator, was one of the recipients of $ 29 million awarded Tuesday by the U.S. Economic Development Administration.
The grant includes the YBI, Manufacturing Advocacy and Growth Network (Magnet), Team NEO, and JumpStart Resilient NEO who receive funding to identify and support potential startups and existing companies working with new and innovative technologies, said Barb Ewing, CEO of YBI. The incubator’s efforts are focused on its additive manufacturing expertise.
The group will focus its efforts in Mahoning, Trumbull, Cuyahoga counties, Summit, Stark, Portage and Wayne counties for 18 months from July.
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