NORTHRIVER - The auction for the 268-acre business property of Garnet Hill Lodge in North River, originally planned for March 15, was cancelled this week.
The auction was cancelled because not enough qualified bidders registered for the sale, according to listing agent Shane Newell of Select Sotheby's Internation Realty, who is handling the sale. The auction was organized by Concierge Auctions.
The unique nature of the auction required a wire deposit of $100,000 according to Newell. When the wire deadline arrived, very few registered voters had sent their deposit, he said.
Another stipulation required that the transaction be closed within 30 days of purchase.
"The sale certainly generated interest," Newell said. "We received 111 inquiries about the property."
The missed deposit deadline, coupled with only five registered bidders, resulted in not enough potential buyers to warrant an auction. Newell said perhaps bidders did not understand the auction registration process.
"Because of the unique resort style of the auction, many people wanted more time to review the property," he said. "There just wasn't have enough time for that."
The property was originally listed at $2.5, but the March 15 auction was planned with no reserve. The low number of bidders may not have produced a fair price, according to Newell.
"It was not our intention to generate interest and then turn bidders into buyers," he said.
Some local buyers were disappointed with the late cancellation. Jill Broderick of Broderick Realty and the bidder that she represented fulfilled the prior requirements and showed up on the morning of March 15, not knowing that the auction had been cancelled.
"We were ready, willing, able and prepared to bid with an understanding that the property would be sold to the highest bidder. This never happened," she said. "Everyone would have been better served if the truth were told - that there was "a reserve," and there would have been less deception in the market place."
Joe and Mary Fahy of North River Holdings LLC, will now seek to sell the property through a traditional sale. They have owned the resort property since 2007 and will explore some of the interested bidders as potential buyers.
The possibility for another auction has not been discussed, according to Newell.
Garnet Hill Lodge will remain open during the sale process and normal operations will continue. Rooms are still available as well as the other offerings of the property.