Masons' $32M bid wins auction for College of New Rochelle campus The 115-year-old private college declared bankruptcy in the wake of a financial scandal.

Mark Lungariello | Rockland/Westchester Journal News

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The Masons won an auction for the bankrupt College of New Rochelle’s campus with a $32 million offer, $11 million more than the opening bid.

The trustees of the Masonic Hall and Asylum Fund beat out two others for the 15.6-acre property after eight rounds of bidding over two days last week.

The 115-year private Catholic college ended academics over the summer after years of struggles and a scandal that led to criminal charges against a former top finance official. It declared bankruptcy in September.

A sale conference is set to be held Monday in bankruptcy court in front of Judge Robert Drain, who’d have to approve the deal before the sale moves forward.

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It isn’t clear exactly what the Masons’ plans for the campus are, but court records describe all of the bidders’ intentions as being “for educational and/or institutional purposes.” An email to the Masonic Hall through its New York City website wasn’t immediately returned Saturday night.

The trustees operate a senior health care campus and camp ground in Oneida County, according to their website, and maintain the DeWint House, George Washington's Headquarters and Historic Site in Tappan. They also administer operation of the Grand Lodge Building of the New York State Masonic Fraternity located on West 23rd Street in New York City.

The Masons beat out bids from a company linked to the Northeastern Conference of Seventh Day Adventists and The Windsor School, a secondary school, whose best offers were both $31 million.

Northeast Education Development Corp. was the stalking horse bidder, with a deal in place for $21 million unless a better offer came in. As part of their deal, the stalking horse would get a 1.5% termination fee if the campus is sold to another buyer.

A spokesman for the firms that marketed the campus for auction declined comment. The firms, A&G Real Estate Partners and B6 Real Estate Advisors, said in court filings that they had extensively marketed the campus to try to maximize its sale price to get the most money for creditors to which the college owed money.

The firms sent weekly emails through a database they said reached 19,000 people, then sent more through vendors to reach another 300,000. Postcards were sent to 2,100 advertising the auction.

There were 247 potential buyers that contacted the firm, 75 confidentiality agreements and 32 groups that toured the campus which is now being leased for $1.8 million and used as a campus for Dobbs Ferry-based Mercy College.

But when a deadline for qualified bids passed on Nov. 18, only the trustees of the Masonic Hall and Asylum Fund had filed. An attorney for Windsor was contacted because of their stated interested, and the school submitted a late bid and deposit less than the total amount.

The group was allowed to participate with the goal of “maximizing the value of the estate,” attorneys for the college said in court filings.

The other bidders objected when Windsor was involved in the closed bidding on Nov. 21, and their objections may be discussed at the sale hearing Monday. Twenty-three people attended the Nov. 21 auction in addition to the bidders, including the brokers, creditors and college representatives.

There were six rounds of bidding, with breaks for discussions, but a seventh round was incomplete to allow one of the bidders to discuss future bidding authority with its board. That appeared to be the Masons, which did not place a bid in the seventh round.

The auction was adjourned until the next day, Nov. 22, when all three bidders were told to submit their best and final sealed bids, setting a purchase price and conditions to close.

On that Friday, each of the bidders was told to submit a best and final sealed bid, setting a purchase price and conditions to close.

CNR already faced declining enrollment and economic struggles when administrators uncovered hidden mounds of debt in 2016. Some $31.2 million in unpaid bills were found in a probe that coincided with the resignation for former President Judith Huntington.

The debts included more than $20 million in unpaid state and federal payroll taxes. Former Controller Keith Borge pleaded guilty to federal fraud charges and failing to pay the taxes in March this year. He is serving a three-year prison sentence.

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