By October 2003, the Mollohans were benefiting from a scorching real-estate market in Washington, D.C., and refinanced their half interest in Remington Inc., for $4.1 million, according to the West Virginia Democrat’s documents. The company had purchased more units in the downtown building, giving it 26 in total, and both the Mollohans and the Jarvises received nearly $762,000 from the company at that time.
In addition, throughout 2003 and 2004, the Mollohans bought additional properties in Canaan Valley, W.Va. Remington Inc., bought its 27th rental unit.
In 2004, with real estate markets still strong, the Mollohans were able to refinance some of their properties. They also “withdrew equity” in those properties worth more nearly $232,000.
In 2005, additional refinancings of the North Carolina and Washington properties allowed them to withdraw another $1.01 million in equity. The couple is carrying a $4.975 million mortgage on their half of Remington Inc.
According to an accountant retained by Mollohan, and whose report the Congressman released Tuesday, the average value of each unit owned by Remington increased from nearly $108,000 to $275,000 from 1999 to 2003.
This boosted the value of the Mollohan’s stake in the corporation worth from a negative $38,000 in 1999 to nearly $3.6 million in 2003 — an increase of 9,438 percent over a four-year period.
Overall, the Mollohans have been able to take nearly $2 million in equity from their real estate holding over the last decade while still seeing those assets increase in value.
In addition, a recent Wall Street Journal article also highlighted the relationship between Mollohan and the CEO of FMW, Dale McBride, whom Mollohan has described as a life-long friend.
Mollohan and McBride purchased a 300-acre farm together in West Virginia in May 2005. In December 2005, FMW won a $2.1 million NASA contract from a program funded through a Mollohan earmark.