The foreclosure on Hawks Point, the retirement community on the Dickinson State University campus, is nearing completion.
First International Bank and Trust, the Watford City-based institution that filed for foreclosure against Hawks Point last year, submitted a winning bid of $4.5 million to secure its second mortgage position on the facility at a sheriff's sale on Thursday morning.
Hawks Point receiver Chris Nyhus said the bank was the only bidder. The retirement community will now enter a 60-day redemption period in which its owners, Dickinson Investments LLC, or judgment creditors can redeem the property by paying First International the amount of their bid.
If that period expires without payment, Nyhus said First International's foreclosure on its note will be complete and the bank will take possession of what it foreclosed upon.
In total, First International is owed nearly $5 million. Nyhus described the foreclosure as "fairly complex."
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"It's a second mortgage and it's a foreclosure on a sublease. It's not owned outright," he said, adding that the land itself is subject to a long-term lease made out to DSU from the North Dakota University System.
Nyhus said the first mortgage position is held by Dacotah Bank to the tune of $11 million. That mortgage was kept current through the course of the facility's receivership.
Moving forward, Nyhus said he expected the banks will "most likely work together" to determine ownership of the facility.
