Update:
Thank you for all the tips:
Upon further inspection, there were 'micro' 3D polysurfaces showing up. I didn't notice them in the .dxf import file because it wasn't until I converted the mesh to 3d polysurface that they showed up. I did notice, however, that they were showing up when importing the .skp file. My guess is that these 'micro' surfaces are the line segments made up of separate 3D polygons that Benson mentioned in his post. I've attached images.
Once I got rid of the 'micro' 3d polysurfaces I was able to 'add solid' the entire section at once.
It would be nice if the 3d polysurfaces that could be joined did join, except that small portion, that way I could have narrowed down the problem surfaces a lot faster.
Jim: I will send you the vectorworks file as well as the original sketchup file if that works.
Thank you,
J.E.