Auctioneer supreme Paul Saperstein is scheduled to appear in front of the land where the Ocean Club was going to rise for the purpose of auctioning the land Wednesday morning, according to legal notices filed in Suffolk County.
Steve Fustolo, the lead developer of the Ocean Club – intended to be a multi-condo, high rise, up-scale development – will not be attending.
Although Fustolo declined to be interviewed for this article, attorneys close to the project told the Journal that the auction will not take place.
“He has the right to seek protection of the court if he can’t reach an amicable agreement with his lenders,” said Attorney Richard Clayman. “This is a very complex situation and there are many remedies available to him,” added Clayman.
The difficulties with an auction, said Clayman, is that Fustolo paid slightly more than $5 million to create the beachfront assemblage.
“In today’s real estate marketplace, the property might fetch $2 to $3 million – and there won’t be many bidders,” he added.
Fustolo remains undaunted.
“The Ocean Club will be built. Everything I have to do to make Ocean Club a reality is going to be done,” he said.