Agent John McClellan, a senior advisor with Sperry Van Ness – Miller Commercial Real Estate in Salisbury, Md., announced the Chapter 7 bankruptcy sale of two inns in coastal Sussex County.
SeaEsta III is located on Route 1 adjacent to Rudder Town in Dewey Beach and SeaEsta IV is located in “the forgotten mile” just south of Rehoboth Beach. McClellan worked closely with Bill Lucks of the SVN – Miller office in Lewes, Del. to complete the sale.
The original bankruptcy filing by Ocean Breeze LLC took place in January 2012.
McClellan represented the bankruptcy trustee, New Jersey based Charles M. Forman and worked with the primary secured creditor, M&T Bank. The hotels continued to operate under management of Salisbury based Marshall Hotels and Resorts.
The nationwide marketing effort began in April 2012 and resulted in multiple offers. The interesting part of this transaction, according to McClellan, is that even after acceptance the contract was advertised publicly and competing offers were welcome for 45 days. At one point, the bankruptcy court ordered a competitive auction but that was later cancelled. Ultimately the properties were sold to Newport, Del. based Forgotten Mile LLC for $3.825 Million. McClellan collaborated with selling broker Domenick Peronti of Investment Property Services in New Castle, Del.