An 88-room motel near the Buffalo Niagara International Airport is being auctioned later this month to head off a foreclosure sale.
Cash Realty & Auctions will conduct the public sale of the Buffalo Airport Inn, located at 50 Freeman Road in Lancaster. The auction will be held Friday, Feb. 16 at 10 a.m., in room 138 of the motel.
The 30,435-square-foot motel, which sits on 1.92 acres just off Transit Road near Salvatore's Grand Hotel and the Thruway, is owned by Singh Lodging., which acquired it in January 2007 for $2.25 million and put on a new roof last year. Formerly a Microtel, it was appraised at $2.8 million, and is currently assessed at $2.5 million, with about $80,000 in annual taxes.
Singh Lodging is owned by Kabal S. Virk and Harjinder K. Virk.
However, Singh is in default on a $1.378 million loan from Zions Bank of Utah, which initiated foreclosure against them last March and won a judgement in December. They also face state and county tax debts. A foreclosure auction has been scheduled for 10 a.m. on Feb. 22 - the week after the Cash Realty auction.
"We're trying to sell it for him before the foreclosure proceedings. He thinks we'll get more money than he would at a referee sale," said Eric Monahan, Cash Realty's operations manager, who will conduct the auction in what he termed a "last-ditch effort to make good."
"We're going to sell it Friday, hand it over to the lawyers, and let them do their magic."
According to Cash Realty, the motel has six king-sized rooms, 45 queen rooms, 13 double queen bedrooms, 15 triple queen bedrooms, and 19 double twin bedrooms. It also includes a lobby and breakfast dining area, as well as in-house laundry with two commercial washers and dryers.
An environmental review of the property was conducted in November 2006, resulting in a clean report.
Monahan said he's had a lot of inquiries already, including "several calls" from bidders in Toronto, as well as "a couple of other calls from other areas in Canada," downstate New York and even "a gentleman from Florida."
"I think there's a lot of interest in it," he said. "Our hope is to get it to where it should be. I think it's very attainable from what I heard."