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Go Back TuesdayMarch 28, 2017 — 2:30pm

Substitute Trustees’ Sale: 6-Story Office Building With 108,827 +/- SF of Rentable Area in "Gaithersburg"

555 Quince Orchard Rd., Gaithersburg, MD 20878

Location: To be held at The Courthouse Steps, Circuit Court For Montgomery County, 50 Maryland Avenue, Rockville, Maryland 20850

All of the property described in the Deed of Trust, located in Montgomery County and more particularly described as follows:

All of Lot 1 in the subdivision known as West Diamond, as shown on a plat of subdivision entitled “West Diamond Subdivision Lot 1” and recorded among the land records of Montgomery County, Maryland in Plat Book 146 as Plat No. 16688.

The improvements thereon being known as 555 Quince Orchard Road, Gaithersburg, Maryland.

TOGETHER WITH buildings and other improvements, fixtures, personal property (other than the personal property of tenants), easements and other rights all as granted in the Deed of Trust.  All of the above is hereinafter collectively referred to as the “Trust Property.”

The foreclosure sale advertised herein has been docketed in the Circuit Court for Montgomery County, Maryland.

The Trust Property will be sold SUBJECT TO, among other things:  (a) all liens except those subordinate to the Deed of Trust, covenants, conditions, restrictions, encumbrances, easements, rights-of-way, matters, and limitations of record affecting the Trust Property, if any; (b) any matters or state of facts which could be ascertained by a physical inspection of the Trust Property or which would be shown on an accurate survey of the Trust Property; (c) the rights, if any, of persons in possession of all or any part of the Trust Property under recorded or unrecorded leases or occupancy agreements; (d) existing housing, building, subdivision and zoning code violations, if any; and (e) all environmental conditions which may exist, including without limitation asbestos, underground storage tanks, or radon gas concentrations.

DESCRIPTION OF PROPERTY: The property is comprised of a site of approximately 2.37 acres improved by a class B six-story office building constructed in 1989 and including approximately 108,827 square feet of rentable area located at 555 Quince Orchard Road, Gaithersburg, Maryland.

CONDITIONS OF SALE: The Trust Property and all parts thereof are sold “AS IS, WHERE IS,” and neither the Substitute Trustees, the party secured by the Deed of Trust nor the auctioneer make any warranty or representation, either express or implied, of any kind or character, including: (i) with respect to all aspects of the physical condition of the Trust Property and all parts thereof, (ii) with respect to subdivision, zoning or use of the Trust Property and all parts thereof, (iii) with respect to leases or rents and all security deposits given therefor, if any, (iv) with respect to present and future contract rights, accounts receivable, general intangibles, licenses, chattel paper, guaranties, proceeds of insurance, instruments, deposits, fees, rents, issues, profits, or receipts, if any, or (v) with respect to the environmental condition of the Trust Property and all parts thereof.  Neither the Substitute Trustees nor the party secured by the Deed of Trust nor any other party guarantee or covenant to deliver or in any way obtain possession of any part of the Trust Property or security deposits for the purchaser.

Summary terms of sale: This advertisement, as amended or supplemented by any oral announcements during the conduct of the sale, constitutes the Substitute Trustees’ entire terms upon which the Trust Property shall be offered for sale, sold or purchased.  The Substitute Trustees reserve the unqualified right to withdraw the Trust Property at any time before the sale.  If the Substitute Trustees determine that a final bid is not commensurate with the value of the Trust Property which is the subject of the bid, they may reject the bid and withdraw the Trust Property, which is the subject of the bid, from sale.  The highest bidder acknowledged by the Substitute Trustees shall be the purchaser.  If any dispute arises among the bidders, the Substitute Trustees shall have the sole and final discretion either to determine the successful bidder or to reoffer and resell the Trust Property.

Prior to the commencement of the foreclosure sale, a cashier's check or certified check of Two Hundred Thousand Dollars ($200,000.00) payable to the Substitute Trustees shall be required from each bidder, other than a bidder on behalf of the party secured by the Deed of Trust or its agents, assigns, or subsidiaries.  All deposits will be returned immediately after the sale except the deposit of the successful bidder of the Trust Property.  The deposit of the successful bidder will be applied to the purchase price at settlement.  The Substitute Trustees shall also require execution of a Contract of Sale immediately upon completion of the sale.

The purchaser, if other than the party secured by the Deed of Trust, its successors or assigns, shall be required to increase its deposit to an amount equal to ten percent (10%) of the bid price payable by cashier's or certified check or immediate funds wire transfer to the Substitute Trustees within forty-eight (48) hours after the sale.  The balance of the purchase price, together with interest on such balance at a rate of ten percent (10%) per annum, from the date of sale, must be paid by immediate funds wire transfer on the date of settlement.  In the event that settlement is delayed for any reason or the balance of the purchase price or any portion thereof is tendered prior to the date of settlement, there shall be no abatement of interest.  In the event that the beneficiary under the Deed of Trust, or an affiliate or subsidiary thereof, is the successful bidder at the sale, such party will not be required to deliver a deposit to the Trustees or to pay interest on the unpaid purchase money.

All state and local ad valorem real estate taxes, other public charges, regular and special assessments, and the like shall be adjusted to the date of sale and thereafter assumed by the purchaser(s).  All collected rent net of all expenses and other collected income net of all expenses shall be adjusted as of the date of sale.  All state and local transfer taxes, recordation taxes and fees, title examination costs, conveyancing fees, and incidental settlement costs shall be paid half by the purchaser and half by the noteholder.

The purchaser at foreclosure sale shall assume all risk of loss for the Trust Property purchased immediately after the sale takes place.  The purchaser(s) shall settle and comply with the sale terms within twenty (20) days following final ratification of sale by the Circuit Court for Montgomery County unless said period is extended by the Substitute Trustees for good cause shown.  Settlement shall be held at the offices of Venable LLP, 750 E. Pratt Street, Suite 900, Baltimore, Maryland 21202.


If the Substitute Trustees are unable to convey the Trust Property as described, the purchaser's sole remedy at law or in equity shall be limited to the refund of the aforementioned deposit.  Upon refund of the deposit to the purchaser(s), the sale shall be void and of no effect, and the purchaser(s) shall have no further claim against the Substitute Trustees, the auctioneer or the party secured by the Deed of Trust, predecessors, successors, affiliates, master, special and other servicers.

If the purchaser defaults, in addition to any other legal or equitable remedies available to them, the Substitute Trustees may declare the entire deposit forfeited and resell the Trust Property at the risk and cost of the defaulting purchaser.  In such event, the defaulting purchaser shall be liable for the payment of any deficiency in the purchase price, all costs and expenses of both sales, reasonable attorneys’ fees, all other charges due, and incidental damages.  The parties’ respective rights and obligations regarding the Terms of Sale and the conduct of the sale shall be governed by and interpreted according to the laws of the State of Maryland.

The contract of sale between the Substitute Trustees, as sellers, and the purchaser (the “Contract of Sale”) includes, by reference, all the terms and conditions contained herein, specifically including, but not limited to, the following provisions:  “Purchaser agrees and represents that the Purchaser is purchasing the Premises subject to all matters known and unknown, in “AS IS, WHERE IS” condition.  In executing and delivering the Contract of Sale, Purchaser recognizes Purchaser has not relied upon nor been induced by any statements or representations of any person, including the Substitute Trustees, the secured party, the deed of trust and security agreement holder or an affiliate or their respective servicers, heirs, personal and legal representatives, agents, employees, successors and assigns (collectively, “Released Parties”), in respect of the condition of the Premises, including the environmental condition of the Premises, unless such representations or statements are specifically set forth in the Contract of Sale.  Purchaser has not relied on anything in the foreclosure advertisement, but rather has relied solely on such investigations, examinations or inspections of the Premises as Purchaser has made.  Purchaser waives and releases the Released Parties from any and all claims the Purchaser or its successors and assigns may have now or in the future may have relating to the condition of the Premises.  Purchaser acknowledges and agrees that this provision was a negotiated part of the Contract of Sale and serves as an essential component of consideration for the same.  The parties specifically acknowledge and agree that this clause bars all claims by Purchaser against Released Parties, arising from the condition of or releases from the Premises pursuant to the Comprehensive Environmental Response, Compensations and Liability Act of 1980, as amended, and all other actions pursuant to federal, state or local laws, ordinances or regulations for any environmental condition of or releases from the Premises.  Further, Purchaser agrees to indemnify Substitute Trustees for any liability they may have to any third party for any environmental condition of the Premises.  Notwithstanding the parties’ intent that this clause bars all such claims, should a court of competent jurisdiction deem otherwise, Purchaser agrees that the presence of this clause should serve as the overwhelming, primary factor in any equitable apportionment of response costs under applicable federal, state or local laws, ordinances, or regulations.”

The information contained herein was obtained from sources deemed to be reliable, but is offered for information purposes only.  The auctioneer, the party secured by the Deed of Trust and the Substitute Trustees make no representations or warranties with respect to the accuracy of this information.

Click Here For The Full Sale Terms In PDF Format

Paul Cooper Auction Agent
The information contained herein was obtained from sources deemed reliable, but is offered for informational purposes only. The Auctioneer, the Sellers, and their respective agents and representatives do not make any representations or warranties with respect to the accuracy of the information contained herein. Prospective purchasers are urged to make their own inspection.