Brooklyn Marriott Hotel.
According to one source, about 80 people attended the auction, which was conducted by East River Mortgage Corp., a defunct corporation owned by McGown, which filed for Chapter 11 in 2012.
Among the properties up for auction was 320 Court Street, the building currently housing the gastro-pub Buschenschank, an illegal private events space in the basement, and soon, a floatation therapy business on the second floor.
Though McGown had valued the building at $9.4 million, it was 'only' bid up to $3.8 million at Friday's auction.
Obviously, McGown was disappointed with the results. Shortly after Friday's auction, he made the following announcement via email:
The auction did not go as well as planned. Several properties did not have offers sufficient to cover lien amounts so we could not accept them. Other bidders failed to produce down payment checks after bidding on the properties. As a result we are reconsidering the sale process.
We are currently offering the following properties for sale:
1511 Pacific St for $160,000 or best offer.
557 Union Street--$2M
555 Union St--$2M
The term of sale for the properties stipulated that the owner reserves the right to cancel any of the sales, so he does not need to accept any of the bids.
None of this probably comes as a surprise to those who have had dealings with McGown in the past. After all, he has become notorious for his questionable business practices, string of bankruptcy filings, and dilapidated buildings, which has earned him the nickname "bankruptcy baron" in the press.
It will be interesting to see what happens next.
but the bid was not accepted.