Judge Approves Sale of Former Seafare Inn for $620K

A bidding war for the former Seafare Inn in Newport Superior Court resulted in the sale of the property including all zoning permits to Apollo Partner for $620,000. 

The property has been in a receivership since last year, when banks seized the assets of former owner George Karousos. 

Lawyer William Delaney, president elect of the Rhode Island Bar Association and the appointed receiver, was scheduled to petition the court to sell to the lot to Apollo Partner for $450,000. Delaney is tasked with recovering funds on behalf of the Seafare Inn's creditors. 

Associate Justice Stephen P. Nugent heard the case Friday morning.  NewportFed has a claim against the property in the amount of $916,000 and was represented by attorney Peter Regan. Lawyer Scott Demello was present to act on behalf of Seafare Inn.

When called before the court, Delaney announced that he had received a higher offer for the property and asked that all interested parties meet to discuss the case.  A dozen people followed Delaney to a separate room in the courthouse. 

"Superior Court is the final arbiter," Delaney explained as he opened the floor to allow further offers on the lot.

Bids were placed for all former Seafare Inn property, including the estate, zoning permits, and the contents of the building.  Three parties, including Apollo Partner, placed bids in increments of $5,000.  

"The current offer is $500,000 by CCG," Delaney said. "Does anyone want to place another bid?" 

At $620,000, the offers stopped.  "Congratulations," Delaney said to the three men who had identified themselves as Apollo Partner.   

Apollo Partner is part of Narragansett Engineering Inc., a Portsmouth company.  One consultant from the group, Neal Hingorany, said they are "a local engineering firm with a mind to do things as responsibly as possible, for the environment, and for the town, too."

"Seafare Inn was an excellent institution for Portsmouth, and it will be hard to top, but we'd like to create something similar," Hingorany said.

Judge Nugent still needed to approve the sale. Nugent asked Attorney Regan if NewportFed was prepared to accept the offer, despite the deficiency created by their $916,000 claim against the property.

"It is a smaller deficiency than we had when we walked in this room this morning," Regan said. 

Judge Nugent asked Hingorany about Apollo's plans for the lot. 

"We have some preliminary designs for the site that we'd like to develop" Hingorany said.

"Are they top secret?" Nugent asked.

Hingorany said that they are considering condominium or townhouse development.  Nugent approved the sale.