At a bankruptcy auction Monday, the Trustee for Sauk Trail Commons LLC selected AF Jonna Development's bid of $4,325,000 for the Commons at Sauk Trail shopping center on Michigan Avenue in Saline.
At a hearing Wednesday, Eastern District of Michigan Chief Judge Phillip J. Shefferly granted approval of the sale of the property at 1335 E. Michigan Ave.
Bloomfield Hills-based AF Jonna Development and Management Co., founded by Arkan Jonna, is a well known commercial developer and is also the preferred developer for Rita Aid Pharmacy, according to the company's website. A representative from AF Jonna declined to comment on the purchase Thursday.
The sum is substantially larger than the $2.6 million stalking horse bid from Cohen Equities, a New York firm and even greater than the approximately $2 million owed to Wells Fargo, the principal creditor.
The 90-minute bidding session was spirited -- with 22 offers, including the stocking horse and opening bid, said David Schwartz, an attorney for the estate trustee.
The property has 10 tenants and is 27 percent occupied.
At closing of the sale, the redemption fee of approximately $2,060,000 will be paid to the mortgage holder, Wells Fargo. The other $2.3 million will be made available to creditors of Sauk Trail Commons, LLC.