Friday, September 17, 2010

Screaming deal at Hailey auction

Old Red Elephant building goes for $125,000

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By TONY EVANS
Express Staff Writer

This building on Main Street in Hailey brought only $125,000 at auction this week. Two years ago, it was offered for sale at $640,000. Photo by David N. Seelig

A building on Main Street in Hailey that once housed the Red Elephant Saloon and, more recently, the Main Street Bistro, sold at auction Monday for $125,000.

The same building listed for more than $640,000 two years ago. Five years ago, it sold for $1,250,000 as a turn-key restaurant operation, with a liquor license.

"Thirty people were in the room. Only six of them actually put their hands in the air," said auctioneer Alan Armstrong with Armstrong Auctions in Boise.

Armstrong said he was surprised the building went for as little as it did.

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"I think everybody was," he said.

The winning bid went to Steve Hogan, one of the owners of the Wicked Spud restaurant, located two blocks south of his new purchase on Main Street.

"Going into the winter, I'm not sure it makes sense to do anything with it right now," Hogan said.

Two commercial real estate agents said more money would have to be put into the building to meet code requirements before it could be reopened as a restaurant, but others said Hogan got a very good deal.

"I thought it would go for between $300,000 and $400,000," real estate agent Scott Mary said. "I think the price is a little troubling, but there is some hope that we are finding the bottom of the market now."

The last liquor license sold in Hailey went for $110,000 in 2005. It was bought by restaurateur Rob Cronin and his partners and is licensed to the Power House restaurant on Main Street.

Tony Evans: tevans@mtexpress.com

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