December 20, 2014

Essex Island Marina Sells for $3,465,000; Higher Price than Some Expected

The welcoming building at the Essex Island Marina

The welcoming building at the Essex Island Marina

One of the prospective bidders said before the auction took place that he had decided not to bid, “because of possible environmental problems that a purchaser might have to address.” Also, this naysayer said that there was a rumor that Jack Brewer tried to buy the property before the auction took place, but that his offer had not been not accepted by the owner.

Typical luxury yacht found at Essex Island Marina

Typical luxury yacht found at Essex Island Marina

Since there was no mutually agreed upon sale of the property before the auction date of August 5, the formal Absolute Auction of the Essex Island Marina was ready to go.  The auction began shortly after eleven o’clock on Tuesday, August 5, and there was an interested crowd of some 100 people in attendance, all seated under a large tent on the grounds of the Essex Island Marina. Most of those in attendance were interested spectators, but at least 20 in the crowd were serious bidders, who came prepared with $75,000 deposit in-hand.

The crowd that attended the JJManning's "Absolute Auction" of the Essex Island Marina

The crowd that attended the JJManning’s “Absolute Auction” of the Essex Island Marina

The interest in the property by these serious bidders was understandable, since what was being auctioned off was one of the premium marinas along the entire Eastern Seaboard of the United States.

The auction itself was conducted by Justin J. Manning, who is the President and CEO of JJManning  Auctioneers, which is headquartered in Yarmouth Port, Massachusetts. Manning began the auction with the friendly query, “Did anyone come by boat today?” However, it turned out that no one had, so he got down to the business at hand.

The “Manning” Style of Running an Auction

Manning’s style in conducting the auction of the Essex Island Marina was to engage in a continuous line of chatter. He would only pause to accept a bid of a certain amount. Then, immediately after accepting this bid, he would ask for a higher one. Generally, the higher amount that he called for, was in the $50,000 range.

Justin Manning, who conducted the recent "Absolute Auction" at the Essex Island Marina

Justin Manning, who conducted the recent “Absolute Auction”
at the Essex Island Marina

The only time Manning paused in his continuous line of chatter of accepting and asking for new higher bids, was to permit a bidder to stop the auction for 30 seconds, so that the he or she could speak with an attorney or money source on the telephone. Once the thirty seconds was up, Manning immediately continued his auction patter.

In his introduction before the formal bidding began, Manning noted that his family has been in the auctioning business since 1976. As for the mindset of the present owner of the Essex Island Marina, Manning said, “He’s done, he wants to retire, and get out of the marina business.”

Also, before the auction began Manning read out loud a detailed description of the property being auctioned. He also said that prospective bidders had been given confidential information about the property that was not available to the general public.

Manning explained that the winner of the auction would have to pay a 10% Buyer’s Premium on top of the highest bid, to arrive at the total purchase price, and the final closing of the sale would take place on or before September 18.

In his remarks before the auction began, Manning stressed that the property was being sold “as is,” In addition, he said the boats presently with slips at the marina for the season would not have their leases cancelled. Manning also noted before the auction that there were 35 slip owners, presently at the marina, who wanted to turn the marina into a private yacht club condominium. However, this prospect faded quickly, when the actual bidding began.

The sale at auction included all the real estate of the marina, Manning said, and the equipment listed in the P&S.

The “Absolute Auction” Begins

At the auction itself, Manning first asked for a bid of $5 million for the property. No one responded, so he slipped down to asking for $2.5 million. There was still no response. Finally, the bidding opened at $400,000, then $1.2 million, $2 million, $2.3 million, $2.4 million, $2.5 million, $2.6 million, $2.65 million, and then before you knew it the bidding had climbed to well above $3 million, until it reached the final auction price.  Manning exhorted the bidding to continue, but to no avail. After a further pause, he proclaimed the winner of the auction, who was none other than Jack Brewer.

The actual bidding in the auction took no more than forty minutes. Also, worth noting was that the auctioneer Justin Manning wore a stylish, dark blue suit, with a tastefully appropriate shirt and tie. Clearly, this was no “blue collar “country auction, where the auctioneer pauses from time, to time to spit from the tobacco he has been chewing.

When it was all over a number of guests at that auction stayed around to compare notes. It was a general consensus that Jack Brewer could have paid less for the marina, if he had been able to strike a deal with the marina owner before the actual auction took place. JJ Manning proved to be a master in running up the price to over $3 million.

Jack Brewer Now Owns 29 Marinas

Nevertheless, even though Brewer may have paid somewhat more than what was anticipated, in the view of one the visitors at the auction, he has purchased a property that will be the flagship of what is now his 29 Brewer marinas. Also, since he already owns two marinas in Essex Harbor he has a clear monopoly on rental slips there.

The former owner of the Essex Island Marina, Wally Schieferdecker said, when the auction was all over, “I’m not happy, I’m not sad, and I am glad it is over.” The Schieferdecker family had owned and operated the marina for 56 years.