The home that real estate developer Lobsang Dargey allegedly bought with money diverted from his Chinese investors is being sold for $2.41 million
No walls, no floors, no sewer? No problem, in this real estate market.
The Bellevue home that real estate developer Lobsang Dargey allegedly bought with money diverted from his Chinese investors will be sold for $2.41 million to high bidder and local businessman Carl Behnke, according to documents filed in federal court Thursday.
The sum is 30 percent above the listing price, but with commissions and other expenses it’s likely less than 90 percent of the $2.5 million the Securities and Exchange Commission claims Dargey misappropriated to buy and improve the Bellevue property.
The house, not far from Bellevue’s Hidden Valley Park, is a 3,500-square-foot, four-bedroom home with a pool, according to the listing on Zillow.
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When surrendered by Dargey, who had not yet moved in, the house was in disarray from a major remodel, a court filing says: “…The interior had been gutted, many of the rooms were without finished walls and/or floors, live electrical wires were exposed, and the sewer was disconnected, among other safety hazards.”
Nonetheless, listing agent Wendy Lister reported, some 75 brokers and 200 others toured the property during several open houses, and nine written offers were received. The sale requires court approval.
Michael Grassmueck, the court-appointed receiver for Dargey’s Path America and related companies, also has a bigger fixer-upper to deal with — the downtown Seattle hole where construction had begun on the 40-story Potala Tower before the SEC moved to freeze the assets last August.
That one won’t be resolved so simply — attorneys representing the Path America investors, Dargey and the receiver are sparring in court over how to proceed in a way that maximizes the value of the property while preserving the investors’ other goal: earning a U.S. green card by creating jobs under the federal EB-5 program.