Epicentre sale draws one bid at $95 million. Here’s what to know.

The foreclosure sale of Charlotte’s one-time hot spot Epicentre drew a small crowd and was over within minutes Tuesday at the Mecklenburg County Courthouse.

The only bid came from creditor Deutsche Bank Trust Company Americas at $95 million.

Bidding on the financially troubled entertainment complex started just at about 10:10 a.m., with William Kirk Jr., a trustee in the foreclosure, starting with an initial credit bid. The entire sale process took about 10 minutes and the bidding itself was over in less than a minute.

GO DEEPER: A timeline of Charlotte’s Epicentre: From nightlife hot spot to facing foreclosure

Following Tuesday’s sale, there is a 10-day period to accept “upset bids.” The last day for upset bids is Aug. 19, court documents showed.

The sale was pushed back twice before over the last three months. City officials have said they hope that $215 million in renovations at Spectrum Center and the sale of the neighboring Epicentre will help jump-start an uptown entertainment district.

In March, foreclosure proceedings started after Epicentre defaulted on its $85 million loan with lender Deutsche Bank. The sale of the 302,324-square-foot mixed-use center at 201 E. Trade St. was first set for May 12.

Kirk told the crowd gathered at the courthouse that day that the Epicentre auction was postponed until July 26. Then just days before July 26, the sale was postponed again. It’s unclear why the sale was postponed twice.

What potential Epicentre bidders think

Some of the potential bidders gathered on the courthouse’s first floor were there simply to observe — not necessarily make a bid right away.

Steve Halprin was representing an interested out-of-town company. Without disclosing the name, Halprin said the company wants to get into the Charlotte market. He wasn’t planning to put a bid down, but wanted to see what the price was.

“If it goes for the right price, obviously we’ll come back,” Halprin said before the auction.

Another potential bidder, Duncan Anderson, said he was looking at Epicentre as an investment opportunity for a pro football league he is trying to start, Heritage Gridiron Association. He said he was surprised by the $95 million credit bid, adding that Epicentre needs upgrades, including security.

“I don’t see paying $100 million for the Epicentre,” Anderson said after the auction. “Not in this market.”

Still, Anderson and his partners planned to meet to discuss what their next steps will be on Epicentre.

To potential bidder Steve Seabolt, a business associate of Apex Real Estate Inc., the Epicentre is worth the $95 million because the appraised value is much higher. He plans to keep an eye on the upset bids.

The appraised value of the property owned by Epicentre SPE is $126 million, according to Mecklenburg County property records.

How upset bids work

Upset bids, where another party can offer a higher bid on the property after the auction ends, are received by the Special Proceedings Division of the county Clerk of Court. The 10-day period to accept such bids starts the day after the foreclosure sale date.

Each time an upset bid is filed, a new 10-day upset bid period begins again, according to North Carolina law.

After all upset bid periods are completed, the highest successful bidder is notified and will need to pay the balance of the purchase price to complete the sale, according to Mecklenburg County’s website.

Charlotte’s hot spot fizzled out

When Epicentre opened 14 years ago it was hailed as a catalyst that would drive more development uptown, despite the economic recession at the time.

During its height of popularity, the one-block complex had nightclubs, a movie theater, bowling and restaurants. It also drew crowds for CIAA parties, the NBA All-Star Game and the Democratic National Convention, among other events.

CIM Group, a California real estate group, bought Epicentre eight years ago for $130.5 million. At that time, it was 94% leased, with 70% of its rental revenue from 16 restaurants.

Epicentre’s demise was acerbated by the COVID pandemic, rising crime in the area, and nightlife and development growth shifting to South End.

Now, the center with 50 tenant spaces is 70% vacant, according to the latest receiver’s report filed last month.

Four restaurants and a cookie shop are listed on the Epicentre directory. Other businesses include Bowlero bowling center, CVS, a dentist’s office and Tailored Smoke cigar shop.

‘They pulled the plug’

One retailer will be closing by the end of the month.

Epic Times jewelry store owner James Mack said he received a lease termination letter on Aug. 1. Epic Times, which started as a kiosk at Epicentre six years ago before moving into its current space, must close by Aug. 31.

“They pulled the plug,” he said. “I’ve done everything I can. We’ve been trying to make something out of nothing for two years.”

Mack said he owes $11,000 in back rent since business dropped off during the COVID pandemic and lack of foot traffic because people think Epicentre is closed. Mack was holding out hope for new ownership but is now looking for a new location.

“In retrospect, I’m holding on to something that’s done anyway,” he said. “Even with the new owners, it will be hard to tell how soon they’ll get it up and running.”