Auctioneers have a reputation as fast talkers and quick thinkers, always keeping the action moving and never settling for a low bid. And it’s not often that commercial properties owned by these rapid-fire rhetoricians end up on the auction block, according to industry professionals.
But that’s just what’s happening to one office building in Quincy.
The building is located at 1495 Hancock St. and houses Flynn Auctions, owned by commercial property auctioneer Daniel Flynn. His company’s website says he has “moved over $500 million in real estate.”
Through a subsidiary company called Daniel James realty, Flynn is also the owner of the Hancock Street property, in foreclosure and scheduled to be auctioned June 15. Flynn did not return calls seeking comment.
One auction industry insider, who asked for anonymity citing conflicts of interest, said he couldn’t think of anyone in the business locally that has had a property they own end up in foreclosure.
“Usually in the auctioneering business, there’s nothing [of an auctioneers] to be auctioned off,” the source said. “I’ve never known any other auctioneer whose property was in danger of being auctioned off, or foreclosed on for that matter. But that’s the kind of thing that’s going on today … in commercial real estate.”
‘Business As Usual’
The company foreclosing on the 42,802-square-foot commercial building is Boston-based lender WPC Hancock Street LLC, an offshoot of Wallace Property Co. In November 2010, Flynn secured a $1.7 million mortgage from WPC Hancock Street to finance the Hancock Street building, according to information obtained from The Warren Group, publisher of Banker & Tradesman. The building was assessed at $3.25 million earlier this year.
Before that, in February of 2009, Flynn received a $300,000 mortgage for the property from Wallace Capital, another affiliate of Wallace Property Co. Wallace Capital’s website says it makes bridge and mezzanine loans with interest rates from 12 to 18 percent. Robert Wallace, president of Wallace Capital, did not return calls for comment.
“They’re really a lender of last resort,” said one auction industry professional who also asked for anonymity. “Those interest rates would catch up to you quick.”
The property is scheduled to be auctioned June 15 by Sullivan & Sullivan Auctioneers. It was slated for auction in May, but was postponed. President Marianne Sullivan said the upcoming auction is “just business as usual,” regardless of the fact that Flynn is a fellow auctioneer.
“We get our directions from the attorney,” Sullivan told Banker & Tradesman. “It’s just business as usual.”
The property was first scheduled for auction in December. An industry source said the auctions have been postponed for last five or six months because “the debtor keeps working out an extension with the banks up to the last minute before the auction. It will probably not go forward on [June 15].”
Another property Flynn owns, a vacant former Saturn car dealership at 54 Miller St. in Quincy is slated to for auction July 2. An auction for that property that was set for May 7 was postponed.
