MACCLM Board - Property Update to Community

Friday, June 9, 2023

Asselemu aleikom wa rahmatou Allah Wa barakatouh,

In the last few weeks, the board invited Dr. Abdul Jaleel to meet and discuss the potential sale of the property to MACCLM. Dr. Abdul Jaleel, through his lawyer, indicated that before he would be able to enter into negotiations on any sale, he needs to know that MACCLM has the sufficient funds to complete the purchase.

The board responded by sending a bank statement indicating that MACCLM has $620K in the bank account and a pre-approval letter from a bank for a loan in the amount of $900K. The board also indicated that we received commitments from community members for over $400K in Quard-Hassan (no-interest loan). We also indicated that we are actively working to secure a loan from Islamic financing institutions, and that we received a positive response from UIF Corporation.

Last week we received a response from Dr. Abdul Jaleel’s lawyer stating that “[n]o agreement has been reached with regard to the price or terms of sale” and that “[t]he Landlord sees no need to enter into negotiations with MACCLM on a sales price for the property if MACCLM cannot provide it with confirmation that it has the necessary funds to purchase the property with cash, or cash plus the ability to obtain a commercial mortgage from a bank.” Dr. Abdul Jaleel’s lawyer added the following points (emphasis added):

  1. Our clients have not reached an agreement on the price or the terms of sale.
  2. We contend that the FMV of the property is substantially higher than the $1,500,000 referenced in the Leaders Bank letter.
  3. Even if you were to provide an updated letter from Leaders Bank referencing a higher purchase price and a higher corresponding loan amount, we have been provided no information as to how MACCLM would repay any loan. As such, we see the Leaders Bank letter as having little value.
  4. Based on what you have provided us, we do not believe MACCLM has sufficient funds or the ability to borrow sufficient funds to purchase the property at its current FMV.
  5. Unless and until evidence is presented to us that we believe is adequate to support your client’s ability to fund a purchase at the FMV and to service any debt borrowed for such purchase, we see no need to incur the cost of obtaining an appraisal of the property to determine its FMV.

MACCLM board, on behalf of the community, is working with an attorney to send a response to Dr. Jaleel’s attorney. MACCLM board is also exploring alternatives in case the landlord is still unwilling to transfer the property to MACCLM.