A court-ordered auction of 12 acres of land, located at 395 Pantigo Road in East Hampton, will be held on Nov. 12. The minimum bid has been set at $2.5 million.
The property, which is adjacent to the building that houses Domaine Franey Wine and Spirits and the Cook Maran insurance agency, is jointly owned by members of the family of James J. Philips. It is being sold as part of a bankruptcy proceeding involving one of the owners, according to court documents.
“This property has been on and off the market for years,” said Gene Stilwell, the Town and Country real estate agent who is overseeing the auction with his colleague William Stoecker. Previous offers to purchase the land have fallen through due to disagreements within the family, Mr. Stilwell said.
There is an existing house on the property, which Mr. Stilwell described as “a tear-down.” Fifty percent of the parcel must remain vacant, according to town code. The remaining six acres, the Town and Country agents said, can be subdivided into two parcels, each of which could accommodate a 14,000-square-foot house, plus a pool, pool house, tennis court, and garage.
Prospective bidders must submit an “irrevocable and binding” offer for an amount at or above the minimum bid to Mr. Stilwell or Mr. Stoecker by the end of business on Nov. 1. Financial statements that substantiate a bidder’s ability to carry through with the purchase are also required by that date, as are several written agreements, including one stating that there will be no contingencies to the bid.
After reviewing the offers and other information, Town and Country will, by Nov. 8, notify those persons deemed eligible to participate in the auction, which will be held at the Town and Country office on Main Street in East Hampton. Bidding will be in increments of at least $20,000, but no more than $100,000. “All bids must be made at a price to be paid in all cash,” according to the court order.
When the auction is over, a “successful bidder,” one offering the highest price, and a “back-up bidder,” one with the second-highest, will be notified. Two of the property’s current owners have reserved the option to purchase the land at the price offered by the highest bidder.
All bids are binding. In other words, the winning bidder cannot back out afterward, but must close on the property or forfeit the money.