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First International intends to buy out Hawks Point

The bank foreclosing on the Hawks Point retirement community intends to eventually purchase the property outright and is planning a smooth transition that'll keep current management and staff in place.

The bank foreclosing on the Hawks Point retirement community intends to eventually purchase the property outright and is planning a smooth transition that'll keep current management and staff in place.

Steve Stenehjem, First International Bank and Trust CEO, said his organization's plan to buy out first mortgage holder Dacotah Bank is "basically what you have to do."

"The foreclosure allows us to foreclose out anybody behind us that can interfere with the property," Stenehjem said. "To take over the property, we have to either keep paying the first mortgage or just buy the first mortgage."

First International holds nearly $5 million in debt on Hawks Point and secured its second mortgage position on Thursday in a sheriff's sale of the facility. The bank was credited up to the amount it held in debt but submitted a winning bid of $4.5 million.

Dacotah Bank, the initial lender to the property, is the holder of the first mortgage position and is owed around $11 million.

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Stenehjem said First International would want to be able to sell Hawks Point "free and clear" of any liens. He said the bank doesn't have a set timetable for the acquisition of Dacotah Bank's mortgage, but that it could happen sometime in the next six months.

The property is currently in receivership and entered a 60-day redemption period following the completion of the Thursday sheriff's sale. If that period expires without payment by Hawks Point's current ownership, Dickinson Investments LLC, the receivership would end and the foreclosure would be completed.

Stenehjem said that management and staffing for Hawks Point would be unchanged by the ending of the receivership and that residents had been made aware of the bank's successful bid.

He said First International believed the property was a "premier assisted living facility" and has already made contact with interested parties.

"It's a desirable asset," Stenehjem said. "It's a nice place and we think that we would be able to sell it for its intended purpose to somebody who would do a great job."

Related Topics: DICKINSON
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