RAD Diversified REIT - Chapter 11 Bidding Procedures Summary

Sale Process Summary

Overview

• RAD Diversified REIT, Inc. seeks approval, on an agreed basis, to sell 2385 Serles Road in Middleton, Tennessee. The property is an approximately 20-acre tract with improvements in Hardeman County. The sale would run as a public auction conducted by the debtor's court-approved auctioneer, Soldnow, LLC d/b/a Tranzon Driggers, free and clear of all liens, claims, encumbrances and interests.
• The sale runs in two steps: the requested sale order approves the auction and the sale terms, and after the auction the debtor will return to court for a second order confirming the sale to the winning bidder and approving the closing disbursements.
• The debtor acted through chief restructuring officer Katie Goodman in deciding to sell. It says a prompt auction will test the property's value in the market and may avoid the delay and expense of continued stay-relief and foreclosure litigation.
• The caption and the request for relief also ask the court to approve a surcharge, and section 506(c) is cited among the bases for relief, but the motion sets out no surcharge amount or terms.

The Property

• The property is approximately 20 acres and improvements in Hardeman County, Tennessee (Map 116, Parcel 001.00), and the debtor holds record title. The legal description puts net usable land at approximately 20 acres, excluding portions within the Hatchie River and the Serles Road right of way.
• Assessed value: $201,000
• Tenancy: Ray and Pamela Brooking lease the property at $1,200 per month under a lease that expires April 30, 2029, and rent is current. The debtor proposes to sell free and clear of the tenants' claims and interests.
• Tranzon Driggers may add one or more other debtor-owned properties to the auction if it determines that doing so will promote competitive bidding.

Title, Liens and Taxes

• The property is not subject to a mortgage, and Exhibit B lists no liens. A title report effective Nov. 2, 2026, names the debtor as fee owner and identifies no mortgages, liens, tax claims, easements, restrictions or estates for the period searched.
• The legal description in Exhibit A, however, makes the tract subject to a county right of way along Serles Road, a TVA transmission line easement, an underground pipeline easement and the Porter's Creek watershed easement.
• The motion says the title report shows no tax claims, but its Exhibit B lists $7,104 in unpaid property taxes for 2023-25, and the motion treats ad valorem taxes as the first-priority lien on the property.

Taxes and Distribution of Proceeds

• Unless the sale confirmation order provides otherwise, the purchaser pays all unpaid property taxes at closing and is responsible for current and past taxes. At closing, net sale proceeds go first to any municipal liens on the property, and the remainder goes to the debtor.
• The debtor must hold those net proceeds and may pay them out only under further court order. Valid, perfected liens not paid at closing attach to the net proceeds with the same extent, validity and priority they held before the petition date.

Auction Process

• Tranzon Driggers will hold the auction on a date it selects, at least four weeks but no more than eight weeks after entry of the sale order. It must begin marketing within 10 days of that order.
• The auction terms, bid procedures and Tranzon Driggers' compensation are governed by the auction application and are not set out in the motion.
• The debtor reserves the right to pursue another course that maximizes and preserves the property's value.

Bid Deposit

• Credit-card hold: $2,000. The debtor may require this from prospective purchasers in place of a cash bid deposit, notwithstanding anything to the contrary in the auction application.

Post-Auction Terms

• Promptly after the auction, the winning bidder must sign a sale agreement or other sale documents. Within 10 business days after the auction, and before closing, the debtor will seek a sale confirmation order confirming the sale to that bidder and approving the proposed closing disbursements.
• The debtor asks the court to decide at the sale confirmation hearing whether the successful purchaser is entitled to section 363(m) good-faith protection.
• The property is sold "as is, where is, with all faults," with no warranties of title whatsoever, and will be conveyed by trustee's deed or a similar instrument.

Key Dates

• Sale motion filed: Nov. 5, 2026
• Marketing launch: within 10 days after entry of the sale order
• Auction: on a date Tranzon Driggers selects, at least four weeks but no more than eight weeks after entry of the sale order
• Request for sale confirmation order: within 10 business days after the auction, and before closing
• Closing: within 30 days after the auction or within 10 business days after the sale confirmation order becomes final and nonappealable, whichever is later

Parties and Case Background

• Seller: RAD Diversified REIT, Inc.
• Auctioneer: Soldnow, LLC d/b/a Tranzon Driggers, whose employment the court previously authorized [Dkt. No. 418]
• The REIT filed Chapter 11 on March 1, 2026, in the Middle District of Florida, and the U.S. Trustee appointed an official committee of unsecured creditors on March 27. On April 1, the court granted the U.S. Trustee's unopposed motion to appoint an examiner [Dkt. No. 167]. On April 8, it approved the U.S. Trustee's application appointing Maria Yip as examiner [Dkt. No. 195].