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Gracie Assoc. units to be auctioned.

an auction of Gracie Associates co-op units is scheduled to take place this week. The sponsor of the building, Gracie Associates, filed bankruptcy in February in an effort to circumvent an attempt by Marine Midland Bank, the holder of the unsold shares, to stop an auction. The filling also acted to halt the co-op corporation's attempt to hold its own auction.

Southern District bankruptcy Judge Tina L. Brozman stayed the other auctions, on the condition that an auction would be held through the bankruptcy court.

Co-op attorney, Stuart F. Gruskin, a partner at Fischbein*Badillo*Wagner said "We negotiated a sale acceptable to the co-op."

Of the approximate 220 units in the 18-story luxury building at 401 East 89 Street, 108 Units being auctioned, Gruskin said. Of those, a block of 16 units of which 10 are vacant and 6 are occupied and have positive cash flows, are being auctioned as a block. The minimum bid for the 16 units, Gruskin said, is $545,000 either by a bulk or aggregate bid.

Another 92 units are subject to a contract for a bulk purchase, Gruskin said, and the contract is subject to a better or higher offer at the auction.

Although the purchase price for the 92 units i only $10,000, the prospective purchaser must meet the terms of the contract, Gruskin noted. The contract creates a $80,000 fund to meet maintenance shortfalls and the purchaser must agree to pay maintenance from the date of the auction, as well as other obligation. "The purchaser is going to have to carry the negative," Gruskin said.

The auction is scheduled for Thursday, May 23 at the U.S. Bankruptcy Courthouse at One Bowling Green in Manhattan at 9:45 a.m.
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Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Author:Weiss, Lois
Publication:Real Estate Weekly
Date:May 22, 1991
Words:291
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