17 properties in Southport, Oak Island for sale

A court-appointed real estate company is trying to sell a package of major properties in Southport and Oak Island by early next week rather than have them go to a foreclosure auction set for Oct. 10.

The properties, including Yaupon Beach Fishing Pier in Oak Island and Fishy Fishy restaurant in Southport, are entangled in a lawsuit between a developer and his financial backers.

The minimum bids for the 17 properties total $76 million, said Leo Nowak, broker for Maus Warwick Matthews & Co. The N.C. Business Court in Raleigh appointed the company three weeks ago to try to sell the properties before the foreclosure auction.

James and Bridget Chirico filed suit in May in Chatham County to prevent Rodney Hyson Sr. and Rodney Hyson Jr. of Cape Fear Realty from taking further actions on behalf of the Cape Fear Trading Groups, the companies that both sides formed to develop land and businesses. The Chiricos have alleged that the Hysons lied about profit expectations, took funds to use in their other businesses and hired people without permission, among other misdeeds.

The court appointed George Rountree of Wilmington as the receiver of Cape Fear Trading Groups. The properties also include the planned developments Southport Crossing, Stevens Park, The Yacht Basin and The Preserve, a nearly complete condominium project on the Intracoastal Waterway at Oak Island.

Nowak said the real estate company is taking offers on the properties through 4 p.m. Monday. Then the proposals will go before Judge John R. Jolly of the state business court at 9 a.m. Tuesday.

"Nothing's cast in concrete, but we're doing everything we can to bring buyers to the property to ward off foreclosure," Nowak said, adding he has received several proposals on the various properties.

He added the company would like to sell all the properties to one buyer but is willing to sell them individually.

Nowak said he expects the judge to make a decision shortly after he reviews the proposals.

He said it is easier to find solid, credit-worthy buyers than to foreclose on properties.

"It just makes it cleaner," he said.

The city of Southport voted at a recent special meeting to make a bid for 317 W. Bay St., a riverfront property in the Yacht Basin area, at the foreclosure auction.

But the minimum price on the property is now set at $4 million, likely more than the city can afford, city attorney Mike Isenberg said. The city probably won't be entering a bid, he said.

The board of aldermen expressed interest in the property because it has access to the waterfront.

What will happen to all of this property once it is sold is a mystery.

"Any given buyer has their plan," Nowak said.

For example, it might be easier for a buyer to renovate the Yaupon Fishing Pier - one of two piers left on Oak Island - than to tear it down. But, he added, he cannot speak for any potential buyers.

Shelby Sebens: 755-7963

shelby.sebens@starnewsonline.com