Wednesday, March 18, 2015

Buschenschank Owner Offering Court Street Building and Several Of His Other Properties At “Pre-Foreclosure" Auction

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Restaurateur James McGown, whose questionable business practices, string of bankruptcy filings and dilapidated buildings, have drawn quite bit of attention in the past, is closing his Tyrolian gastro-pub, Buschenschank, at 320 Court Street.
This follows the closing of several of his other eateries, including Goldenrod, in the former PJ Hanley space.
Obviously, McGown seems to have a penchant for pushing the envelope. In the case of Buschenschank, noise complaints, Buildings Department violations and illegal use of the basement as a music venue prompted Community Board 6 to disapprove a renewal of its liquor license back in 2014.

McGown's apparent financial problems  are now prompting him to put the 320 Court Street building as well as several other properties in and around Carroll Gardens, up for sale in a “pre-foreclosure" auction which will be held at the Brooklyn Marriott Hotel on March 27th, 2015 10 AM. The auction is conducted by East River Mortgage Corp.

A description of the 320 Court Street building estimates its value at $9.4 million. It states that the storefront is owner-occupied and will be delivered vacant.

A PMFA reader sent me a copy of the "Terms of Sale" for the properties and notes that they are particularly interesting.  The reader noted:
"I’ve been told that no one in his/her right mind would bid under such conditions.his “terms of sale” are that the “time is of the essence” clause applies only to the buyer, which as I understand it, means he can put of the sale as long as he likes (meanwhile holding on to the deposit!), and that he reserves the right to cancel any sale, which I think means that after the auction he can decide which properties he wants to close on and which he'll keep, using the money from the others to pay off his debts, “renovate", etc. All of which seems to me typical of the way he conducts business, and woe to any buyer who gets ensnared!"


Below please fine the terms of sale for the properties:


22 comments:

Anonymous said...

Wow. That contract should include a psychological evaluation for the buyer.

Anonymous said...

They sure packed it in yesterday for St. Pats. Guess that was "last call"!

Katia said...

Wow, it was open yesterday? You probably are right that it was its last call. I received several reports in the past few days saying that it had been closed. I took the photos on Monday, and the entire place looked pretty cleared out.

Anonymous said...

it was closed cause they refinished the floors...at least thats what the sign said. odd thing to do if you are closing?

Katia said...

Refinishing the floor sure would not be my priority if I was auctioning off the building, but who knows.

Peter said...

If I remember correctly St. Patrick's Day was the last day that Hanley's was open before it transformed into Goldenrod. They used plastic cups and the tables were gone. Probably a pretty good day to make some final revenue.

Anonymous said...

This owner will not be missed, but decent German food will. I was only there when they first opened years ago (before all of the problems) and it was nice to get some good wurst.

Anonymous said...

Apparently as of a few minutes ago. Buschenshank is still promoting events on their Facebook page. Asking people to come in for Happy Hour.

Katia said...

I checked it as well.
It may stay open for a while longer, but since the owner says he will deliver an empty commercial space, and the auction is planned for the end of the month, it only seems a matter of time before t is closed for good.

Anonymous said...

He is such a terrible person and awful businessman that "Caveat Emptor" doesn't begin to cover it.

Anonymous said...

Sounds like he is drumming up cash to flee the country.

Anonymous said...

This guys Bankruptcies pale in comparison to what Lightstone stuck their creditors with; so lets share the shame spreading about the neighborhood.

Jim said...

Hope it's for good this time.

Anonymous said...

Unfortunately for the people who would be so happy to see Buschenshank be a distant memory, that is not going to be the case. Buschenshank is staying for the foreseeable future. - an old bartender

Anonymous said...

Just wait until it comes to the actual foreclosure auction. Terms the are set by the court. This is a last gasp at control

Anonymous said...

Last night my husband and I noticed a black/blue odd colored light coming from the 2nd story windows. Very bizarre. Also, Didn't Pardon Me For Asking post pictures of giant jacuzzi sized tubs being delivered there recently? That place and that owner are creepy!

Anonymous said...

I wouldn't be so confident that place is going so quickly. Google his name and see the Eater and
Crain's articles regarding this so-called sale.
BTW- your blog mentioned in both articles.
The 'auction' being conducted by firm McGown owns.

Katia said...

I saw both articles. They picked up the news from PMFA, but credit goes to a neighborhood reader, who sent me the info on the auction.
I would certainly be careful dealing with McGown financially.

Eric Hancock said...

Nothing says "trustworthy auction company" like a Gmail address.

And what of the giant tubs? Pick one up on the cheap, perhaps?

Anonymous said...

I looked up 'East River Mortgage Corp" because I have never heard of it and they filed bankruptcy in 2012.... their address 31 Renwick St- googled it and James McGown came up at that address. So I guess thats his too. Could it get any more questionable?

Katia said...

It sure is fishy, to say the least.

Anonymous said...

I see that the building is under contract to be sold now.