SUBSTITUTE TRUSTEES' AUCTION

OF

110 RESIDENTIAL CONDOS

5 STORAGE CONDOS

SEPARATE HVAC

SEPARATE ELECTRIC METERS

2 ELEVATORS

110 PARKING SPACES

By virtue of the power of sale contained in that certain Deed of Trust, Security Agreement and Assignment of Leases and Rents (the “Deed of Trust”) from Anacostia, L.L.C. to Kent A. Ketterman and Scott T. Weaver, Trustees, dated January 30, 2006 and recorded among the Land Records of the District of Columbia (the “Land Records”) as Instrument No. 2006002566, the holder of the indebtedness secured thereby (the “Noteholder”) having appointed K. Lee Riley, Jr. and Scott W. Foley, Substitute Trustees by instrument duly executed, acknowledged and recorded among the Land Records, default having occurred and demand having been made for payment of the obligations secured thereby and notice having been filed on October 1, 2009 in accordance with Public Law 90-566, at the request of the Noteholder, the Substitute Trustees will offer for sale at public auction on the premises the following described property, individually and/or collectively together with the improvements thereon, situate in the District of Columbia and designated as Square 5868, Lots 2001-2115 as more particularly described as follows:

All of Lot 30 and part of Lots 28, 29 and 31 in Square 5868 in Section 7, “Barry Farm”, as per plat recorded in Liber Levy Court 2 at Folio 1 among the Records of the Office of the Surveyor of the District of Columbia; ALSO, Lots 61 and 62 in Square 5868 in a subdivision made by Emily C. Bryant and others of Lot 29, Section 7, “Barry Farm”, as per plat recorded in Liber County 20 at Folio 7 among the Records of the Office of the Surveyor of the District of Columbia, described in one parcel in accordance with a Plat of Survey recorded in Survey Book 182 at page 51 among said Surveyor’s Office Records, as follows: BEGINNING for the same on the Easterly line of Nichols Avenue at the Southwest corner of said Lot 30, and running thence with said Easterly line of Nichols Avenue, North 8° 53’ 10” East, 295.00 feet; thence leaving said line of Nichols Avenue, South 62° 43’ 36” East, 353.16 feet to a point on the Westerly line of Dunbar Road, as shown and established on plat recorded in Liber 86 at folio 4 among said Surveyor’s Office Records; thence along said Westerly line of Dunbar Road, South 14° 02’10” West, 358.64 feet; thence leaving said line of Dunbar Road, North 62° 16’ West, 219.10 feet; thence North 91° 01’ East, 70.60 feet; thence North 62° 33’ 18” West, 101.0 feet to the Easterly line of Nichols Avenue and the point of beginning.  NOTE:  At the date hereof the above described land is, as noted above, designated on the Records of the Assessor of the District of Columbia for assessment and taxation purposes as Square 5868, Lots 2001-2115.

TOGETHER WITH any and all buildings, structures, improvements or appurtenances now erected on the above-described land, including without limitation, all equipment, appurtenances, machinery and fixtures of any kind or character forming a part of said buildings, structures, improvements or appurtenances (the “Property”).

TERMS OF SALE:  A deposit of One Hundred Thousand Dollars ($100,000.00) will be required of the purchaser at time and place of sale, such deposit to be in cash, cashier’s check, or certified check, drawn on a banking institution acceptable to the Substitute Trustees, or such other form as the Substitute Trustees may determine in their sole discretion.  The deposit shall be placed in the trust account of the Substitute Trustees and shall not accrue interest. The Noteholder, if a bidder, shall not be required to post a deposit or pay interest.  The Substitute Trustees will, as a condition to the sale, require all potential bidders, except the Noteholder, to show their deposit before any bidding begins. If the Noteholder bids, it shall be entitled to debt bid and, the Auctioneer shall be entitled to bid on behalf of the Noteholder.  Balance of the purchase price, together with interest thereon at the default rate set forth in the note secured by the Deed of Trust, from the date of the sale to the date that the funds are received by the Substitute Trustees, shall be due in cash or certified funds within thirty (30) days of the date of sale unless extended at the sole discretion of the Substitute Trustees.  TIME IS OF THE ESSENCE.  If payment of the balance does not take place within thirty (30) days of sale (or such extended date as may be approved in writing by the Substitute Trustees as provided above), in addition to any other legal or equitable remedies available, the Substitute Trustees may declare the deposit forfeited, retain the deposit, resell the Property at the risk and cost of the defaulting purchaser, and avail themselves and the Noteholder of any legal and equitable rights against the defaulting purchaser.  In the event of such default, the defaulting purchaser shall be liable for the payment of any deficiency in the purchase price, all costs and expenses of both sales, attorneys’ fees (including full commission on the gross sale price) and all other charges incurred by the Substitute Trustees or the Noteholder including, but not limited to, all incidental damages.  In the event settlement is delayed for any reason and the Property is purchased by someone other than the Noteholder, there shall be no abatement of interest caused by the delay. 

All taxes, ground rent, water rent, homeowner association charges, condominium fees, and all other public and private charges and assessments, including, without limitation, paving, sanitary and/or metropolitan district charges that are owed against the Property shall be borne by the purchaser and paid for by the purchaser at settlement.  In addition, the cost of all documentary stamps, transfer taxes, document preparation, title insurance, title examination costs, survey costs, and all other settlement expenses incidental to conveyance of the Property, shall be borne by the purchaser and paid for by the purchaser at settlement.  In the event the Property is subject to a ground rent(s), the purchaser agrees to the leasehold purchase subject to the ground rent(s) with no adjustment in the purchase price. 

The Property is sold subject to: the rights, if any, of parties in possession, if such rights have priority over the Deed of Trust; any and all covenants, conditions, restrictions, easements, rights of way and limitations of record; and, all recorded and unrecorded agreements referred to therein, or that otherwise pertain to the ownership, operation, or use of the Property, or to any utility services at or to the Property, including, without limitation, (i) that certain Declaration for the Parkway House, A Condominium dated September 29, 2006 and recorded among the Land Records as Instrument No. 2006151007, which instrument is believed to have established upon the Property 110 platted and recorded residential condominium units, 5 platted and recorded storage condominium units, and certain common elements appurtenant thereto, and (ii) those certain lease agreements pertaining to residential condominium units B-1, L-7, L-14, L-16, 113, 208, 215, 216, and 307 at the Property.

The Property is also being sold subject to all encumbrances that are not extinguished by operation of law by the sale and subject to all easements, equitable servitudes, conditions, rights of way, restrictions, rights of redemption, covenants, declarations and restrictions of record affecting the Property. Furthermore, the Property is being sold subject to all nuisances, housing code violations, building code violations, zoning code violations, critical area and wetland violations, and environmental problems, conditions and hazards, whether latent or observable, which may exist on or with respect to the Property. In addition, the Property is being sold subject to such state of facts that an accurate survey or physical inspection of the Property might disclose.

The Property will be sold “WHERE IS” in an “AS IS” condition and without any recourse, representations or warranties, either express or implied, as to its nature, condition, value, use or description.  The Substitute Trustees, the Noteholder or any other party do not make any warranty or representation of any kind or nature, including, without limitation, the physical condition of, description of, or title to the Property, or as to the accuracy of the information furnished to the prospective bidders by the Substitute Trustees or any other party.  The successful purchaser recognizes that any investigation, examination or inspection of the Property is not within the control of the Substitute Trustees or the Noteholder.  Purchaser shall be responsible for obtaining physical possession of the Property following conveyance of the Property by the Substitute Trustees to the purchaser.  The purchaser shall assume the risk of loss for the Property immediately after the sale.  The Noteholder and Substitute Trustees assume no liability for fuel, gas, electricity, utilities, rents, or other sums payable under recorded or unrecorded documents and agreements and other operating charges accrued before or after the sale and all such charges shall be the sole responsibility of the purchaser from the date of the sale (whether payable before or after the date of sale).  The Noteholder and Substitute Trustees assume no liability for performance of any covenants or obligations under recorded or unrecorded documents and agreements before or after the sale and such charges shall be the responsibility of the purchaser from the date of sale (whether payable before or after sale).

If the Substitute Trustees are unable to convey title to the Property, the purchaser’s sole remedy at law or in equity shall be limited to the refund of its deposit, without interest thereon.  Upon refund of the deposit, the sale shall be void and of no effect, and the purchaser shall have no further claims against the Substitute Trustees or Noteholder.  The conveyance of the Property by the Substitute Trustees to the purchaser at settlement shall be by Substitute Trustees’ Deed without covenant, warranty or representations whatsoever, expressed or implied.

NOTE:  The information contained herein was obtained from sources deemed to be reliable, but is offered for information purposes only.  The Substitute Trustees and the Noteholder do not make any representations or warranties whatsoever with respect to the accuracy of the information contained herein.  All square footage, acreage, and other measurements, if any, are approximate.  Prospective purchasers are urged to make their own inspection.  Until an offer is finally accepted by the Substitute Trustees, it is subject to higher offers.  The Substitute Trustees reserve the right in their sole discretion to reject any and all bids or withdraw the Property from sale at any time before the auctioneer announces that the Property is “sold” and the deposit in the required amount and form is accepted by the Substitute Trustees.  The Substitute Trustees may adjourn and/or continue the sale at any time and close the sale.  The parties’ respective rights and obligations regarding the terms of the sale and conduct of the sale shall be governed and interpreted under the laws of the District of Columbia.  Further particulars may be announced at the time of sale.  For info go to www.mdauctioneers.org or call 410-366-5555.

K. Lee Riley, Jr. and Scott W. Foley,

Substitute Trustees