NOTICE OF TRUSTEE’S SALE

Town of Front Royal, Warren County, Virginia

Skyline Vista Apartments

343/353/363 Kendrick Lane and 1095 N. Royal Avenue

Parcel ID Nos. 20A5-1-A-2; 20A5-1-A-3; 20A5-1-A-4; 20A5-1-A-5; 20A5-1-A-6;

20A5-1-A-7; 20A5-1-A-8; 20A5-1-A-9; 20A5-1-A-10; 20A5-1-A-11; 20A5-1-A-12;

20A5-1-A-13; 20A5-1-A-14; 20A5-1-A-15; 20A5-1-A-16;

20A3-5-1; 20A3-5-2; 20A3-5-3; 20A3-5-4; 20A3-5-5; 20A3-5-6; and 20A3-5-7

WHEREAS, by that certain Deed of Trust June 12, 2009, recorded in the Clerk’s Office of the Circuit Court of the County of Warren, Virginia (“Clerk’s Office”), on June 23, 2009, as Instrument No. 090003765 (the “Deed of Trust”), the Property (as defined in the Deed of Trust) consisting of the above-referenced real property located in the Town of Front Royal, Warren County, Virginia, and all improvements thereon, including the apartment buildings thereon comprising approximately 80 units in total, and all other rights, easements and appurtenances benefiting and/or burdening the Property (collectively, the “Land and Improvements”), and together with all of the Substitute Trustee’s right, title and interest in and to, at the direction of the Holder (as hereinafter defined), all fixtures and items of personal property, if any, described in the Deed of Trust, and further described in the Financing Statement perfecting the Holder’s interest therein filed with the Clerk’s Office of the Virginia State Corporation Commission as File Number 09062273617 (collectively, the “Personal Property”); provided, however, that fixtures and other personal property of tenants-in-possession, if any, are not included in this sale except to the extent of the Borrower’s interest therein. The Land and Improvements and the Personal Property, are hereinafter referred to collectively as the “Property”. The Property was conveyed to J. Judson McKellar, Jr., and Donald L. Ritenour, as trustees (“Original Trustees”), in trust, to secure certain indebtedness described in the Deed of Trust in the original principal amount of $3,538,000.00 (as amended, modified, or supplemented, the “Indebtedness”);

WHEREAS, by a Deed of Appointment of Substitute Trustee dated November 13, 2024, recorded in the Clerk’s Office on November 15, 2024, as Instrument No. 240004986, the holder of the Indebtedness (“Holder”) appointed Paragon Trustees, LLC, as Substitute Trustee (“Substitute Trustee”), in the place and stead of the Original Trustees and any previously appointed substitute trustees;

WHEREAS, default has been made in the payment of the Indebtedness, and the Holder has instructed the Substitute Trustee to sell the Property;

NOW, THEREFORE, in execution of the Deed of Trust, the Substitute Trustee, in accordance with the provisions of the Deed of Trust and after having given all required notices, including fourteen (14) days’ notice to the owner of the Property of the date, time, place, and terms of the sale, will offer the Property for sale to the highest bidder, at public auction, at the front entrance of the Warren County Circuit Court, 1 East Main Street, Front Royal, Virginia 22630, on December 18, 2024, at 11:00a.m. local time (the “Sale Date”).

TERMS OF SALE: ALL CASH except that, subject to the requirements of Section 55.1-324 of the Code of Virginia, 1950, as amended, the holder of the Indebtedness shall be entitled to apply any of the debt secured by the Deed of Trust as a credit to the successful bid for the Property (the “Sales Price”). To participate in the bidding for the Property, a deposit in the amount of $100,000.00 (the “Deposit”), in cash or a certified or cashier’s check payable (or endorsed) to the Substitute Trustee, will be required at the time of sale (other than from the Holder), with settlement within fifteen (15) days from the Sale Date, TIME BEING OF THE ESSENCE. The sale will be subject to all easements, restrictions, and liens, including mechanics’ liens whether filed or unfiled, which may lawfully affect the Property or be superior to the lien of the Deed of Trust. Conveyance of the Land and Improvements shall be by deed with special warranty, and the Personal Property shall be conveyed by bill of sale, without warranty. Purchaser shall assume any unpaid real estate taxes for the current year from the Sale Date. The Property will be sold in bulk, in “AS IS” condition. Neither the Substitute Trustee nor the Holder will deliver possession of the Property to the successful bidder, and such delivery will be the responsibility of the successful bidder. The Substitute Trustee reserves the right to withdraw the Property from sale at any time prior to the termination of bidding, and to keep the bidding open for any length of time. Additional terms may be announced at the time of sale. Without limitation, the sale of the Property shall be subject to the restrictions recorded in the Clerk’s Office that, for a period of three (3) years after the Sale Date, the following restrictions shall apply to each Low-Income Unit (as defined in subsection (i)(3) of § 42 of the Internal Revenue Code) in the Land and Improvements: (1) there shall be no eviction or termination of tenancy (other than for good cause) of an existing tenant of any Low-Income Unit; and (2) the gross rent with respect to any such Low-Income Unit shall not be increased to an amount in excess of the then current maximum rent limits applicable under § 42 to such Low-Income Unit. Such restriction is required by Holder for the purpose of complying with the federal regulations governing the tax credits allocated to the development. In the event of any violation of such covenant, Holder shall have the exclusive right to enforce such restrictions and shall be entitled to specific performance of such covenant and such other legal and equitable remedies and relief as may be appropriate.

The successful bidder will be deemed to have accepted (and required to execute) a Memorandum of Sale and Deposit Receipt (the “Memo of Sale”) concerning the purchase of the Property, a copy of which will be made available for review upon request to the information contact person below or immediately before announcing the sale of the Property on the date of sale. Bidders should be sure to request and review a copy of the Memo of Sale which contains additional terms and conditions of the sale and important disclaimers, which terms, conditions and disclaimers are incorporated into this Advertisement as if fully set forth herein.

For information contact:

Trevor B. Reid, Esq.

Parker, Pollard, Wilton & Peaden, P.C.

6802 Paragon Place, Suite 205

Richmond, Virginia 23230

(804) 262-3600

treid@parkerpollard.com

Counsel for Paragon Trustees, LLC, Substitute Trustee

4855-9687-3717, v. 1

Run Dates: November 22nd, 2024

November 29th, 2024

AD#88713