By THE HERALD-WHIG STAFF
The Quincy City Center hotel, 201 S. Third, will be sold at auction next month.
Douglas Johnson, managing director of CBRE Auction Services out of Chicago, announced Thursday morning in a press release that the auction will be Oct. 23. The opening bid will be $200,000.
The 145-room hotel on a 4.5-acre lot had been listed for sale for $2.5 million by CBRE Hotels, a real estate division that is part of CBRE Inc. The hotel is currently owned by Abbott Development Inc.
"The Quincy City Center Hotel is a fantastic investor or owner/operator opportunity," Paul Galanis, managing director of CBRE Auction Services, said in a press release. "An astute investor or owner/operator will immediately see the value added opportunity this property represents."
"This is a tremendous opportunity for an experienced hotel operator or investor to acquire a full-service hotel with significant banquet capabilities," Johnson said in the release.
Neither Galanis or Johnson were available for comment Thursday morning.
The hotel has 17,500 square feet of meeting space, an indoor pool, fitness center, guest laundry facilities and high-speed Internet access. However, when the hotel was listed with CBRE Hotels last year, a brochure on the property said half of the rooms were out of service.
The hotel opened in August 1984 as the Quincy Holiday Inn, also known as the "Holidome." It was a popular venue for events in Quincy for a number of years.
The hotel was owned by Quincy Partners Ltd., a corporation launched by the Albanese family of Springfield. It was sold to Marine Bank in August 2006 to settle a foreclosure suit brought against the bank. Quincy Partners Ltd. owed Marine Bank $3.19 million. It also owed the city of Quincy $1.16 million on a $1.35 million loan given to the hotel through a federal Urban Development Action Grant. The city had not received any monthly mortgage payments since June 1999.
However, Marine Bank had first priority to any proceeds from the sale.
Abbott Development Inc. bought the hotel in February 2008. The principal players in the hotel operation originally were Luke and Mark Abbott, who grew up in Quincy. Their brother, Matt Abbott, also was involved in the transaction.
Luke Abbott said when the deal was finalized that they planned to convert the hotel into a flagship national brand connected to a nationwide reservation system.
Matt Abbott said Thursday morning the renovation did not take place because the economy crashed soon after the purchase, and proper financing could not be secured.
"This is a huge opportunity for a new person coming into it," he said.
Abbott said his firm opted to go the auction route to sell the property, because it provided the best opportunity to get "fair market value" at this time.
Another downtown hotel, the Quincy Days Inn at 200 Maine, was put on the market in Feb. 2012 for $1.6 million, but Zanger and Associates no longer lists the property.
An initial earnest money deposit of $30,000 is required to participate in the auction. Property inspections will be held by appointment only. Detailed property information also will be available for review, including the purchase and sale agreement.
For information about the auction, visit www.cbre.com/auctionservices or call CBRE Auction Services at 800-815-1038.