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FOSTER'S DAILY NEWS - Dover Hotel Auction Sale Tops Original Purchase Price

July 11, 2009

Article published Jul 11, 2009
Dover hotel auction sale tops original purchase price

DOVER - The Microtel Inn and Suites at Weeks Crossing now has a new owner after a foreclosure auction netted a larger selling price than the original purchase price.

A representative from JJ Manning Auctioneers, the Yarmouth Port, Mass.-based company contracted by the Bank of New England to hold the auction, declined to identify who purchased the building, but said the property was sold for $2.62 million, plus another $27,000 in liens that will be paid by the bidder.

The property was originally purchased in October 2006 for $2,119,601 by Krishna Realty Group, of Dover. Representatives from that company did not return messages for comment left at the hotel.

There is still no indication if the new owner will opt to keep the hotel as a Microtel. An employee who answered the phone Friday identified the hotel as "Microtel Inn and Suites." The hotel's general manager did not return a message for comment.

Before the auction, the hotel's general manager, Lyndsay Peabody, said the foreclosure "is probably directly related to hotel sales," which she said have been low due to the slumping economy and "little to no marketing" by the owners.

The winning bidder of the auction was required to pay a $50,000 deposit by the day of the auction and pay any additional funds needed to secure 10 percent of the bid price within five days of the auction or "written proof acceptable to the Mortgagee, in its sole discretion, of the successful bidder's financial ability to timely pay the balance of the Bid Price," according to the "Memorandum Agreement of Sale" that is included in the "Property Information Package" provided by JJ Manning Auctioneers.

The closing on the property must also occur within 45 days of the sales agreement, and at that time the new owner's identify will be public information.