From Anthony Bowe at RVPRO.com
The bulk auction of all the company’s assets was held Thursday (April 19) at the shuttered RV maker’s plant in Riverside, Calif. Hackman Capital stated in a news release that it plans to sell the equipment assets of MVP RV and lease the property.
“We could not be more excited to acquire this project and we look forward finding a tenant for the space who will bring jobs into the area,” said Michael Hackman, Hackman Capital’s founder and CEO.
Hackman Capital worked on the transaction with real estate firms Finn Comer and Lee & Associates, according to the company. Hackman Capital viewed the MVP RV property as prime real estate because it’s near the Port of Los Angeles and Long Beach, which is responsible for the majority of imports from Asia into the U.S., according to the company.
“With the Inland Empire handling a large part of these imports, increased trade activity and a rebounding economy will help drive up the demand for the space,” the company stated in its news release. “There are only a handful of options for manufacturing users in Inland Empire (in California), which makes this property particularly desirable. In addition, Riverside County provides manufacturers with a large transportation network where many highways and railroads intersect, making it a major industrial center in Southern California.”
The auction started at noon Pacific Standard Time, and went until 9:30 p.m, according to Michael L. Joncich, manager of the adjustment bureau for the Credit Management Association (CMA), the nonprofit liquidation company that held the sale. Three bidders made offers on MVP RV’s real estate and two others made offers on the company’s assets, which included factory equipment, inventory, and intellectual property.
“The purchase was awarded to a buyer who bid for everything. So, we have opened a sales contract and the deal will go through escrow and we expect to close this (deal) in 45 days,” Joncich said, declining to reveal the price of the Hackman Capital’s winning bid.
Notably, no existing RV manufacturers attended the sale and none of the bidders seemed interested in continuing MVP RV’s operations, according to Joncich.
“The bidders for the real estate were just buying real estate. The guys who had interest in the equipment were basically liquidators just interested in liquidating everything,” he said.
Winston Chung, MVP RV’s former majority owner, did not participate in the auction, but attempted to join at the last opportunity.
“There was an inquiry from an attorney who purported to be representing Chung and some other investors,” Joncich said. “He called the day of the auction and asked to participate. However, they were unable to come up with the minimum deposit, so they were not bidders at the auction.”
Joncich described the process of purchase that will carry out during the next 45 days before the deal is closed: The money and documents go into an escrow. The escrow makes sure the title to the property is cleared up and there aren’t any impairments to the transfer of the title. Property taxes have to be paid.
Once the property is clear to transfer, the buyer has to fund the balance of his purchase price, he said. The title will transfer and the escrow closes.
MVP RV closed business operations and laid off its entire workforce in January after losing access to its working capital due to an ongoing legal dispute involving majority owner Winston Chung and his former investment partner, Fadar International.
Fadar International held real estate ownership of MVP RV before it was auctioned. The real estate includes two buildings totaling 470,200 square feet on 1.6 million square feet of space.