Goshen Plaza is sold
North American Properties makes winning bid
By Nathan Mayberg
GOSHEN — The troubled Goshen Plaza turned a corner on Wednesday, when Philip Adler's $7.5 million bid won at a bankruptcy auction held in front of the mall.
Adler is chief executive officer of North American Properties, based in Westchester County.
Goshen Plaza Partners, the mortgage holder, put in a higher bid, according to its attorney, Robert Novick of Kasowitz, Benson, Torres & Friedman LLP in New York City. But, he said, its bid was ignored because it didn't meet the $8 million benchmark requested by the auction company, Auction Advisors.
Novick said Goshen Plaza Partners may consider legal action over the bidding.
The owner of the property is Realty Equities Goshen LLC, which is in bankruptcy over a $7.9 million mortgage owed on the property, Novick said.
Representatives of Auction Advisors refused to answer questions about the auction.
The auction was held at the vacant storefront previously occupied by Style Connection Hair Salon, one of a half-dozen empty storefronts at the plaza.
Goshen Plaza Partners purchased the mortgage debt from TD Bank for an undisclosed amount.
The sale of the property will still need to be approved at a bankruptcy court hearing, to be held in federal court on April 30.
Adler's bid was accompanied by a $375,000 buyer's premium to pay the auction company. According to a marketing proposal provided by Auction Advisors, the buyer's premium would not be paid to the auction company if the lender won the auction.
There have been numerous complaints through the years over the condition of the plaza's parking lot, bedeviled by many large potholes. On Wednesday, some of the potholes appeared to have been patched over, although some rough spots remain.
The plaza has also frustrated residents since the Grand Union, which once anchored the plaza, closed more than 10 years ago, leaving Goshen without a supermarket.
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