May 24, 2017

In April 2014, NCC PS Enterprises, LLC (“NCC PS”), a joint venture between PCCP and Stoneleigh Capital, acquired the 917-room National Conference Center (“NCC”) in Leesburg, Virginia. Nearly two years later, NCC PS filed two separate zoning applications with Loudon County that would collectively allow development of up to 126 townhomes on the site.

Click here for the report.

As of May 2017, the County’s “critical action” date for the project passed, and the development had yet to receive approval from the Loudon County Planning Commission, Board of Supervisors or School Board.

Questions for investors:

  • Given the failure of the site’s previous owners to develop townhomes in 2009, did PCCP and Stoneleigh do sufficient due diligence before purchasing the NCC?
  • Did PCCP decide to acquire the NCC based on plans to successfully develop townhomes on the site? If so, did they overpay for the asset?
  • PCCP and Stoneleigh hired the same law firm that failed to bring a similar development plan for the NCC to fruition in 2009. Are they pursuing the same failed strategy to overcome opposition of the project?
  • How much have PCCP and Stoneleigh spent on attorneys and other expenses shepherding this stalled project, and have investors borne those costs?
  • Is PCCP contemplating other development projects? If so, how does the firm plan to improve its due diligence process to avoid another stalled project?

 

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