City Manager Scott Pickup confirmed today that Rye closed on the sale of 1037 Boston Post Road to Wolf Petroleum at the previously agreed price of $5.6 million.

 

By Tom McDermott

 

City Manager Scott Pickup confirmed today that Rye closed on the sale of 1037 Boston Post Road to Wolf Petroleum at the previously agreed price of $5.6 million.

 

Rye purchased the nearly 10,000 square-foot building in 2006 for $6.2 million and planned to use it for a new police headquarters and municipal court. The subsequent projected $25 million cost of that project, along with the real estate market downslide beginning in 2008, caused the City to scuttle the plan in 2010 and extend a tenant lease to help defray holding costs. It is currently occupied by Lester’s, a clothing retailer, whose lease expires on December 31.

 

Last fall, the City engaged CBRE, a commercial real estate broker, to find a buyer for the property. Wolf Petroleum’s bid was approved by the City Council in March, but only after an impassioned plea by Perry Schorr of Lester’s who said they still wanted to buy the building.

 

Reached today, Mr. Schorr had no comment.

 

The deal failed to close by the expected date and at the April 17 City Council meeting, the Council authorized the City Manager and Kristen Wilson, the Corporation Council to initiate a lawsuit April 22, if necessary, in order to get Lester’s to provide a clean Estoppel Certificate. The certificate was needed for title insurance. Eventually, Lester’s complied without a suit.

 

Pickup said that the new owner has made some “minor concessions” to Lester’s, which do not impact the sale price. “We’re very happy with the deal,” he said.

 

Mayor Doug French has already said that he wants to make a portion of the proceeds available for spending on needed capital projects like re-paving part of Station Plaza.