Judge Approves Late Property Developer Welkowitz’s Plan To Sell Some Assets To Pay Off Debt | Local company
Lancaster County Judge Richard J. Reich on Monday approved a proposal from the estate of late real estate developer Richard Welkowitz to sell his stake in an ATM-owning partnership to Lancaster-based investment firm Heller Capital Group for $13.8 million.
The move is intended to repay the debts contracted by the estate. One of Welkowitz’s businesses, Blackford Development, owned 95% of a partnership that owns 5,138 ATMs, according to a previous filing outlining the plan.
Under previously announced terms of the proposed sale, Heller Capital Group would pay the Welkowitz estate $3 million in cash at closing. Then he would pay $300,000 a month to the estate for three years, for a total of $10.8 million.
Late developer Welkowitz’s Ferraris, other cars, fetch over $7 million at auction; estate claims exceed $170 million
The creditors involved owe $51 million, according to documents filed with the county wills registry.
The Heller Capital group, which owns 5% of the partnership, would become the sole owner thanks to the agreement.
Several banks, as creditors to Welkowitz’s estate, had raised objections as they sought more information, but most were resolved before the hearing, according to the judge’s order. These banks were PeoplesBank and Traditions Bank, both based in York, Centric Bank of Harrisburg and Univest Bank & Trust of Souderton. The law firm Barley Snyder represents the Welkowitz estate.
Welkowitz died by suicide on Dec. 26, 2019, resulting in claims filed by more than 30 creditors totaling more than $210 million, according to will records and county court filings.
Since 2020, the estate has been trying to raise funds to pay creditors. In July 2020, Welkowitz’s estate auctioned off 17 luxury cars and a motorcycle for over $7 million at an auction in Indianapolis, Indiana.
More items from late developer Welkowitz’s estate are up for auction as claims against him top $163 million
At another auction that summer, more than 600 Welkowitz possessions, including autographed sports memorabilia, car-related items, artwork, and office equipment, were sold. Proceeds from this sale were not available.
Later that year, the estate sold the Welkowitz home just north of Boca Raton, Florida, for nearly $5.8 million.
Welkowitz founded Crown Properties, which became Blackford Development, in 1968. Among the many properties he developed was Lancaster Outlet City, which opened in 1982 on Lincoln Highway East. It is now Tanger Outlets.
Co-developer of Lancaster County’s first mall dies at 73