A bankruptcy court judge has approved a change of ownership for a troubled marina in Brooklyn. ONE°15 Brooklyn Marina is set to operate under Radcliff Management, a U.S.-based large advisory firm.
The auction took place on December 4. Besides the marina, it included ownership of a related sailing club and a restaurant on site. According to the auctioneer’s report, interested parties were able to inspect the locations in the weeks prior to the auction.
Radcliff Management, which describes itself as a long-term investor, was a stalking-horse bidder. It was one of two companies submitting qualifying bids. The other was SMI Properties Group, which has a portfolio of residential, commercial, and marina properties. Its marinas include Lincoln Harbor Marina in New Jersey and other marinas in Sag Harbor, New York as well as Fort Lauderdale. Each company’s initial bids were over $2.1 million.
According to Josha Olshin, a managing partner of Auction Advisors and the exclusive broker and auctioneer for the sale, the live bidding was “robust.” “Both groups bidding were serious marina operators, and we had several others watching the results,” he says. Radcliff and SMI each submitted increasing offers until Radcliff offered $3.5 million, $50,000 more than SMI. SMI declined to bid further.
While the bankruptcy court judge approved the sale, a hearing for the next steps takes place in January 2025.
The prior owners of the marine filed for bankruptcy protection a few weeks ago, citing insurmountable debt. Initially, ONE°15 Brooklyn Marina intended to open in 2016. However, development and budget issues during construction delayed opening day to 2020. The pandemic caused more complications. Investors also withdrew support last year, the bankruptcy filing indicated, making it difficult to pay rent and other expenses. Although the prior owners held “extensive negotiations” with multiple parties to acquire the marina and its assets, no deals were struck. The owners then fell further behind in paying rent.
“In many ways One15 Brooklyn Marina is a trophy property, but it has had its share of challenges,” says Olshin. “The new owner has diligenced the property very thoroughly, and with a new business model can hopefully make it a financial success.”
ONE°15 Brooklyn Marina one15brooklynmarina.com
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