Last week’s auction for the former Quality Inn property at the North Gloster Street/McCullough Boulevard interchange didn’t garner a bid that met the $350,000 minimum. The appraised land value is nearly $800,000 alone, CBRE said.
Douglas Johnson, managing director of CBRE Auction Services ,said the owner of the hotel and the four acres it sits on is “reviewing its options at this time for post-auction sales opportunities. The owner is an undisclosed South Dakota financial institution. The property closed in 2010 and at the time was owned by the Graham Organization in South Dakota. At least $90,000 in back taxes was owed on the property at its closing.
CBRE had listed the property as a “bank-directed auction” that required at $350,000 minimum bid plus a 10 percent buyer’s premium.
Said CBRE in a statement:
According to Paul Galanis, managing director, CBRE Auction Services, “This well located property offers flexible C-2 zoning that will allow hotels, convenience stores, restaurants, retail, offce, sales, and some service uses.”
Galanis also commented, “Several buyers asked for more time to review the property and could not participate in the auction. The appraised land value (excluding the buildings and improvements) of this property is nearly $800,000 and we fully expect this property will sell very shortly at price and terms acceptable to the bank.”
Led by Douglas Johnson, Paul Galanis and Patrick Connell, CBRE Auction Services assists lenders, investors and other owners in the disposition of commercial real estate assets. The group joins forces with experts in each of CBRE’s business lines to develop a comprehensive marketing program designed to achieve client goals and the selling of the asset(s) on a date certain. More information on CBRE Auction Services can be found at www.cbre.com/auctionservices.