Dealers sued for $96,000 back rent
By Nick Hiltunen
Published in News on February 24, 2009 1:46 PM
One of Goldsboro's largest car dealerships has been sued for about $100,000 in delinquent land rent payments, court records show.
The landlord for dealer Honda of Goldsboro and Hyundai of Goldsboro alleges in a complaint that the dealer is $96,175 behind in rent payments, plus late fees of $4,808.
Raleigh attorney James K. Dorsett III said the dealer would likely face financial trouble for some time.
"Those auto dealerships unfortunately haven't paid their rent for some months," Dorsett said. "And it appears they may not be paying their rent in the future."
According to the lease agreement filed in court, parent company Darrow Automotive Group, of Waukesha, Wis., signed a 20-year-lease with Delaware-based landlord Car Dar NC Gold for the property in Wayne County.
The initial base rent for the property, according to court documents, is $341,973 per year.
The lease agreement with Goldsboro Honda and Goldsboro Hyundai took effect Dec. 20, 2007, court records show.
Rent payments were to be paid in equal monthly installments, with a five-day grace period.
The rent was also scheduled to increase by an amount determined by a formula on the first day of the third year of the lease agreement, according to court records.
A message left Monday evening for the general manager of both dealerships was not returned before deadline on today.
"It's a sign of the times, organizations that ... can't meet their obligations, and all these trickle-down (economic) effects, as you know," Dorsett said.