Portsmouth’s former McIntyre Federal Building is seen in this auction listing photo. Portsmouth’s mayor hopes to lobby Congress to invalidate an auction that would see the building turned over to a $5 million mystery bidder. Photo courtesy of the General Services Administration
After months of no bid activity the online auction for one of the most hotly contested pieces of downtown Portsmouth moved into high gear, and ultimately sold to its first bidder.
Four separate bidders – their identities unknown – vied for the former McIntyre Federal Building at 80 Daniel St., going back and fourth over the course of a week starting Sept. 25, pushing the price up in mostly $50,000 increments from a $5 million initial bid placed July 1.
The auction finally closed Oct. 6 with the first bidder’s victory with a $9 million bid – $4 million over their initial offer and $450,000 over the previous bid.
While the auction, being conducted by the federal General Services Administration, was conducted without identifying any bidder, Portsmouth developer Bill Binnie had told the Portsmouth Herald last month that he was one of the bidders, but was not the initial bidder who now won the auction. As of Oct. 11, no deed had yet been entered in the Rockingham County Registry of Deeds for the property.
During fraught debate over an earlier development concept proposed by local developer Kane Co. and Boston-based firm Redgate, Binnie had offered what he characterized as a compromise program, but was turned down by all parties.
City leaders confirmed to The Registry Review last month that they were not bidding, and had hoped to lobby New Hampshire’s senators and members of Congress to have the property transferred to the city via legislation.
Whoever wins the auction, however, will be faced with a major challenge. The property is part-office space, part-former post office, at a time when the state’s office market is not very strong, suggesting residential or hotel uses may likely be pursued by any eventual winner.
It’s also the subject of intense feelings among Portsmouth voters. Two successive mayors and city councils lost their seats due to debate over how the high-profile property should be developed, with many residents decrying plans for significant amounts of housing on the site.
