Sale of Hooters site falls through

By Peter Goonan

05/14/2008- The Republican

SPRINGFIELD - No sale.

The sale of the Hooters building on Congress Street last March has fallen through after the high bidder at the foreclosure auction failed to come up with the money to close the purchase.

J.J. Manning Auctioneers of Yarmouthport confirmed the auction default yesterday, and has scheduled another site auction for June 4 at 11 a.m.

The four-story, 54,477-square-foot factory building at 60 Congress St. housed a Hooters restaurant and the Double Door Mexican Grill before closing abruptly in November 2006.

The high bidder had declined to publicly identify himself on March 19 after bidding $787,500 for the building. J.J. Manning President Justin J. Manning said yesterday that he is not authorized to release the bidder's name.

The March bidder forfeited a $10,000 deposit after "he was not able to pull together his money in time to be able to close," said Manning.

The new auction establishes a $25,000 initial deposit.

The property and all furniture, fixtures, and equipment will be auctioned as one package by the mortgagee, GE Capital Franchise Financial Corp., said Manning said.

GE Capital foreclosed on the mortgage held by the owner of record, Mather Properties LLC.

GE Capital is optimistic about the next auction's success, given that bidders will now have more information about the building contents, along with an open house scheduled for May 29, Manning said.

The open house will run from 11 a.m. to 1 p.m.

The amount of furnishings, fixtures, and equipment, including a full kitchen, is greater than initially realized, and adds to the mortgagee's optimism, said Manning.

The building was constructed in 1914, and is located on a 1.25-acre site zoned Industrial A.

Brian M. Connors, the city deputy director of economic development, said he was surprised to learn of the March auction default.

The property is at a good location with easy highway access, he said. In addition, the property is close to the vacant Union Station building, planned for redevelopment, which could enhance the Hooters building's future options and opportunities, said Connors.

The buyer of the property will be responsible for paying delinquent real estate taxes and interest that total more than $42,000, according to city tax lien records.