35-acre Marina Subdivision in Otis Heads to Auction
The property has a water way permit for up to 30 docks and one public dock.
The piece of land on Reservoir Road was approved for subdivision plans to create 53 housing units as well as a state permit to install 30 docks on the reservoir. However, the out-of-state owners are putting it up for auction in hopes another developer will take over the project.
"That market has been hot as a pistol. Things in Brooklyn have been doubling in value. They are calling it the new Manhattan. So, they have taken all of their resources, time, energy, and money and focused it on what has been extremely profitable. They kind of lost their direction and focus on Otis, but not too much because they enhanced the value with the waterway license," said auctioneer Justin Manning during a tour of the property last week.
The acreage is just off Route 23 and is owned by Otis Lake LLC, a company formed by a group of New York and New Jersey developers. The property is being sold "as is" which includes the subdivision and the water permits. It also includes six buildings that would likely need to be razed. The "as is" condition is hoped to eliminate any contingencies and move the sale along.
"They want to sell it as is, which means selling it in its current status and not selling it subject to something," Manning said. "In most sales, it is a drawn-out negotiation with contingencies that could potentially blow up the deal."
But that doesn't mean a new developer needs to follow Otis Lake LLC's plans. But, any changes would need local approval.
"There are all different ideas. We don't know who the end user, the buyer, is going to be. It could be somebody who wants to conserve the land. It could be somebody who wants to do exactly what these guys have planned, somebody who wants to tweak it a little bit," Manning said. "We're selling subject to all laws and ordinances. Someone's vision is someone's vision and they can do it pending the OK of the town."
The waterway license was approved by the state in 2009 and the subdivision plan by the town in 2008. The company started the process but opted not to finish it to focus on work elsewhere.
The auction is scheduled for noon at the Red Lion Inn on Friday, June 24. But, Manning says there is a chance it sells even before then.
"One out of every five auctions we do these days sells before the auction because it is not a foreclosure, there is no distress here. My client doesn't have sell, they are just motivated to sell," Manning said.
The property sits along the reservoir providing nice scenery. But, it also has six buildings in poor condition.
"This is a really, really picturesque location and our property here needs a facelift to take advantage of this waterways license," Manning said.
Because the property is difficult to assess value on at this point, the owners opted instead to auction it and let the market determine the value.
"The value of this asset is the land, the waterway license, the view, the docks," Manning said.
Tags: auction, lakes, ponds, land sales, subdivisions,
