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1. Purchase of the University Property
The University property was a multitenant industrial park
located in Tempe, Arizona. In December 1985, the University
property was acquired by Hillgren and decedent from the Huettner
Limited Partnership (Huettner). Hillgren signed the purchase
agreement as the “buyer” of the property. The University
property was purchased for $3,831,800 with cash of $319,194.78,
assumption of the existing mortgage of $1,518,432.05 (Safeco
loan), and assumption of a second mortgage previously carried by
Huettner of $1,966,567.95 (Huettner loan). The loans on the
property were nonrecourse.
Under the warranty deed for the property, Sea Shell and
Seaward each held title to 50 percent of the property. On
December 23, 1985, a promissory note for the Huettner loan made
Sea Shell and Seaward jointly and severally liable on the debt.
Hillgren signed the promissory note as president and secretary of
Seaward and as vice president of Sea Shell. On July 1, 1986,
Seaward executed a quitclaim deed where it relinquished its
interest in the University property to Sea Shell. The quitclaim
deed on the University property was not recorded until May 23,
1994.
2. Financing of the University Property
The BLA recited that Hillgren had assisted decedent in her
acquisition of the University property by lending her $485,000.
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Last modified: May 25, 2011