Friday, December 12, 2014YOUNGSTOWN, Ohio -- The building that for decades housed the Palazzo’s restaurant on Midlothian Boulevard before changing hands and falling into disrepair was up for auction Thursday, but failed to meet the reserve set by the owner.
The highest bid for the building at 914 Midlothian Blvd., painted in vivid colors when it became a Mexican restaurant a few years ago, was $77,000. The bid was “really close” to the undisclosed reserve sought, said Seth Seaton, vice president of Key Auctioneers, Indianapolis, who hosted the auction. A 10% buyer's premium was placed on the bid, raising the final offer to $84,700.
The auctioneer began by asking $200,000 but that fell to $25,000 before one of the four bidders who signed in made the first offer.
“We're going to talk to the seller and see if that number [$84,700] is attractive to him. Otherwise, we're going to see if we can reach a solution by talking to the high bidder and seeing if he'd be willing to go higher,” Seaton said. “We do expect the offer to be accepted.”
The property, on the corner of Midlothian Boulevard and Zedaker Street, occupies 1.338 acres. The building is listed at 5,384 square feet with an assessed tax value of $281,260. A D5 liquor license comes with the building.
A fire broke out there in 2011 and the most recent restaurant to occupy the building, Casa Del Patrón, closed earlier this year.
“It's a nice corner lot and a big commercial lot, especially for Midlothian here where you have a lot of commerce along this strip. With 1 1/3 acres, we expected the property to be fairly attractive,” Seaton said.
The highest bidder, who asked his name not be used until he reaches an agreement with the owner, said he would like to reopen the building as a restaurant-bar.
“I'm a lifelong resident of Youngstown and I've seen it up high and down low over the years. This is part of my everyday route. I see it all the time and I've been interested in it,” he said.
Before the auction, Seaton said that the building would be sold as-is. Several ceiling tiles had fallen to the floor and a few wet spots in the carpet were visible. He also noted that some people came to the auction to learn what would become of the building.
“That's always nice to see, people who care about what's going to happen in their community,” Seaton said.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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