Today’s auction for Yacht Haven, the bankrupt property off Commercial Wharf, brought an $8 million top bid from an unknown buyer. The identity is likely to be disclosed next week when papers are filed.
The amount is less than the $10.1 million mortgage held by the bank, but probably more than the expectation from the auction given the lack of development potential. There were 14 serious bidders who each brought a $250,000 refundable deposit.
Yovette Mumford bought the property for $11.7 million in 2005, but subsequently lost it when the business failed and neighbors at Commercial Wharf enforced the limitations of the property’s deed, limiting development options. Mumford is the former sister-in-law of Edward Markey.
According to Banker & Tradesman, at one point auctioneer and Rowes Wharf resident Paul Saperstein said, “You don’t realize – the value is here! This is the waterfront, we’re coming out of a depression, and the mayor is a very business-oriented guy!” This would imply that the City might allow some type of future development beyond just the wharf.
The good news: 14 interested parties with money to spend in today’s economy
The bad news: $8 million price tag might be high without substantially increasing the scope of development which means more disputes ahead