"East Baltimore - Baltimore Highlands"

Huesman, Jones and Miles, LLC
11350 McCormick Road
Executive Plaza III, Suite 905
Hunt Valley, MD 21031

SUBSTITUTE TRUSTEES’ AUCTION

“Baltimore Highlands”

ADULT ENTERTAINMENT BAR
Formerly Known As
“ELDORADO LOUNGE”
AND “CLUB ADORE”

Including
Two Story Masonry Building
7-Day Liquor License
Adult Entertainment License

Sale On Premises
4100 E. LOMBARD STREET
Corner Haven Street
Baltimore, MD 21224

MONDAY, DECEMBER 21, 2020
AT 2:00 P.M.

      Under and by virtue of the power of sale contained in a certain Deed of Trust, Assignment and Security Agreement (the “Deed of Trust”) from K.A.J. Enterprises, Inc. to the Trustee therein, dated January 8, 2007, and recorded among the Land Records of Baltimore City, Maryland, in Liber FMC 8879, Page 067, the holder of the indebtedness secured thereby having appointed the undersigned to act as Substitute Trustees, in place and stead of the aforementioned Trustee, by instrument duly executed, acknowledged and recorded among the Land Records aforesaid; and pursuant to the Assignments of the Liquor License and Entertainment License from K.A.J. Enterprises, Inc., Debtor to the Secured Creditor; default having occurred under the terms thereof and at the request of the party secured thereby, the undersigned Substitute Trustees and Secured Creditor will sell at Public Auction, on the premises, the following:

Real Estate

      All those fee simple and leasehold lots of ground and the improvements thereon, situate and lying in Baltimore City, State of Maryland and being more fully described in the above-referenced Deed of Trust; subject to the payment of an annual $60 ground rent, payable in equal semi-annual installments on the 20th days of May and November in each and every year. Total lot size 30’9″ x 122’1″, more or less. The improvements thereon being formerly known as 4100-4102 E. Lombard Street, now known as 4100 E. Lombard Street, Baltimore, MD 21224.

      The property is improved by a two story brick and stucco tavern building, constructed in 1900 and containing 5,880 square feet of gross building area, according to public tax records. First floor is believed to contain a bar, dance area, DJ booth, dressing room, private room and two rest rooms; second floor receptionist office, private office, five additional rooms and two rest rooms; electric heat and central air. Zoning I-2, industrial.

      Deposit $20,000.

Licenses & Personal Property

      7-Day (Type BD7) Beer, Wine and Liquor License and Adult Entertainment License will be offered together. Any personal property owned by the Debtor and located on the premises, if any, is included.

      The transfer of the Liquor License and Adult Entertainment License are subject to the approval of the Board of Liquor License Commissioners of Baltimore as in the case of an original application, and it shall be the sole responsibility of the purchaser to obtain said approval. In addition, in line with Article 2B of the Annotated Code of Maryland, any tangible personal property taxes, retail sales, amusement, admission and/or withholding taxes must be paid to the City of Baltimore and/or State of Maryland.

      Deposit $5,000.

Manner & Terms of Sale

      MANNER OF SALE: First Offering – The real estate will be offered and the bid reserved. Second Offering – the Licenses and personal property will be offered and the bid reserved. Third Offering – the real estate, Licenses and personal property will be offered as an entirety. The sale will be made in the manner producing the greater amount.

      TERMS OF SALE: Deposits, as stated above, or $25,000 if sold as an entirety, payable by cashier’s check, will be required of the purchaser at time and place of sale.

      Real Estate & Entirety Sale – The deposit shall be increased to 10% of the purchase price within 24 hours at the Auctioneer’s Office. The holder of the indebtedness, if a bidder at the sale, shall not be required to post a deposit. Balance to be paid in cash at settlement, which shall take place within ten (10) business days following final ratification of the sale by the Circuit Court for Baltimore City at a location designated by the Substitute Trustees. If payment of the balance does not take place within the specified time, the deposit shall be forfeited and the property may be resold at the risk and expense of the purchaser. Interest to be charged on the unpaid purchase money, at the rate stated in the Note executed in connection with the foreclosed Deed of Trust, from date of contract to date of settlement. If settlement is delayed for any reason, there will be no abatement of interest. All adjustments as of date of contract. Taxes and all other public charges and assessments payable on a monthly or annual basis, including sanitary and/or metropolitan district charges, if any, to be adjusted for the current year to date of contract and assumed thereafter by the purchaser. The property will be sold in “AS IS” condition, without express or implied warranty as to the nature and description of the improvements as contained herein; and subject to easements, agreements, restrictions or covenants of record affecting same, if any. Purchaser shall be responsible for obtaining physical possession of the property and assumes the risk of loss or damage to the property from the date of contract forward. The purchaser waives and releases the Substitute Trustees, the holder of the indebtedness, the Auctioneers, and their respective agents, successors and assigns from any and all claims the purchaser and/or its successors and assigns may now have or may have in the future relating to the condition of the property, including but not limited to the environmental condition thereof. If the Substitute Trustees are unable to convey good and marketable title, the purchaser’s sole remedy in law or equity shall be limited to the refund of the deposit. Upon refund of the deposit this sale shall be null and void and of no effect, and the purchaser shall have no further claim against the Substitute Trustees, the holder of the indebtedness or Auctioneers. Recordation costs, transfer taxes and all other costs incident to settlement to be paid by the purchaser. Time shall be of the essence for the purchaser.

      If Licenses & Personal Property are sold separately from the Real Estate – balance in full due within 24 hours, by cashier’s check or wire transfer, at the Auctioneer’s office; time being of the essence.

      Authority to cancel this sale rests solely with the Substitute Trustees and/or the Auctioneer. Prospective buyers should disregard all other statements and comments made by any other person or entity regarding minimum bids, pricing and cancellations of the sale. Additional terms may be announced at the time of sale. The Substitute Trustees reserve: (1) the right to accept or reject any or all bids; (2) the right to modify or waive the requirements for bidders’ deposits and terms of sale and/or settlement; (3) the right to withdraw the Property from the sale before acceptance of the final bid; and (4) the right to cancel or postpone the sale.

No Buyer’s Premium

Gerard F. Miles, Jr. and Henry Callegary,
Substitute Trustees and Attorneys for Secured Party