The condo association at Commercial Wharf remains skeptical of the $9.9 million price being paid for the adjacent Yacht Haven, claiming in a court filing that there must be “secret” plans to redevelop the site. Northern Bank had a $10.1 million mortgage and ended up with the 4.5 acre property after the Yovette Mumford filed for bankruptcy and an auction failed to bring meaningful bids. The buyer is Charles Lagasse, a Newburyport developer, through a company called Boston Boat Basin, LLC which is also associated with Steve Karp’s New England Development. What is unusual about the agreement is that the bank is providing 100% financing for the purchase so the buyer is not actually putting up any money.
According to a Banker & Tradesman article,
“Northern Bank has rebutted this argument, telling the bankruptcy court that Boston Boat Basin has “repeatedly announced its intention to abide by” deed restrictions that bar the property from operating as a restaurant, bar or function hall. The Boston Redevelopment Authority has not yet been approached with a redevelopment plan, a BRA spokeswoman said.”
The condo association’s filing added, “The entire $9.9 million purchase price is being financed by the Bank. There appears to be no actual equity; this deal so completely departs from any standard commercial loan transaction, especially in this market, that one can readily infer that, if the buyer does not obtain certain permits, it can walk or there will be a drastically reduced purchase price.”
Bankruptcy court documents indicate a January 8, 2010 closing date.