A local third party mortgage broker submitted on my behalf to Atlantic Coast Equity, Inc. A detailed business plan & re-financing request for a self storage facility in West Springfield together with our preferred contractor's resume, and an independent feasibility study. This was followed a week later with several conference calls between Mr. James Parent of Atlantic Equity, Inc., our third party broker, and me.
After reviewing the material we submitted, we received a letter of interest from Mr. Parent on November 17 detailing the terms of the proposed financing together with a request to wire $2,875.00 to ACE to cover the cost of due diligence and an on-site visit by their representative.in subsequent conversations, Mr. Parent provided us with the banking coordinates for the wire transfer, which in fact was done on December 2. On December 9, a site visit was done by an agent of Atlantic Equity, Inc who we believe to have been Thomas Mayer.
After a cursory tour of the facility in the presence of my contractor and financial advisor, Mr. Mayer advised us that he was off on other site inspections and that we would be hearing from Mr. Parent.
However, all communication ceased after the money was wired and the site visit was complete. Repeated phone calls both from the 3rd party broker and me went unanswered. Finally on January 23, 3rd party broker received rather terse reply by return e-mail that the loan was denied for the reasons that:
1. The inspection report showed an average of 180 to 360 days of comparable commercial properties on the market. This is not suitable for our investors. 2. Sub-standard market.
Neither of these excuses makes any sense. First, reason #1 bears no relationship to the type of loan requested or to the contemplated project and, in fact is untrue. Second, given the plethora of data submitted along with the loan package, Atlantic Coast Equity, Inc should never have pursued the transaction if they felt West Springfield, MA was a sub-standard market.
Therefore, we believe the evidence shows that Atlantic Coast Equity, Inc generates its income through due diligence deposits and site inspection fees and there never was any intention to fund this project. Based on this we have instituted a lawsuit to recover the fees paid and have named ACE as a defendant together with Mr. Parent and his partners: Mr Dale S Wood and Mr. Thomas Mayer.
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