Cumberland land auction called off; tract still expected to change hands

October 30, 2017//

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The auction has been cancelled due to the “complicated nature of the development,” said California-based Braun Worldbid and listing agent Greg Rothman of Lemoyne-based RSR Realtors, the firm marketing the tract, known as Pennterra.

“It has required more time than average in underwriting and analysis,” the two parties said.

KMWW Partnership, the longtime owner of the farmland in Middlesex Township, teed it up for mixed-use development more than a decade ago. But those plans were shelved during the recession. They called for more than 1,000 homes, as well as a town center with 243,000 square feet of office and retail space.

The owner originally hoped to sell the property at auction in September. However, a number of interested investment groups and builders from Pennsylvania, Maryland and New York asked for additional time to review the property.

After the most recent delay, bids were expected this week, with a winning bid announcement slated for Nov. 13. But now it looks like the land will exchange hands privately. According to the latest announcement, “several” buyers are now talking directly to the owner.

Igal Feibush of Stone Canyon Capital Partners, a real estate advisory firm, is representing the tract’s principal owner, Fred Kayne, in the negotiations.

“We are in deep discussions with three parties and working on finalizing terms to go into contract,” Feibush said in a statement through RSR. “Until the time that we have a signed contract we are entertaining other offers, but we are comfortable that one of the deals we are negotiating will be finalized shortly.”

Two of the potential buyers are large regional developers and the other is a New York-based investment group, Feibush said. He believes the auction process helped attract potential buyers who otherwise may not have heard about the property.

This story was updated to include Feibush’s comments.