by Rose Simone
RECORD STAFF
The Jakobstettel Inn has been put up for sale with the hopes of finding a new owner by the end of next month.The inn, on Isabella Street in St. Jacobs, was one of the businesses run by Daniel P. Reeve, whose troubled business ventures are now the subject of a review by the Waterloo Regional Police fraud branch.
Waterloo Regional Police Sgt. Rob Zensner said the police have now received about 100 complaints about alleged investment losses that total more than $16 million. That includes investments related to the Jakobstettel Inn, as well as other investments sold through companies headed by Reeve.
The inn closed earlier this spring. Many couples who had booked weddings there lost their deposits and had to scramble to find other locations for their weddings. The property is now going through a power-of-sale process as the mortgage holders try to recover their money.
Tuerr Holdings Inc., which had first and second mortgages on the property, is owed $680,765 on the second mortgage; Brunen Holdings Inc. is owed $350,000 on a third mortgage, according to court judgments.
The inn is being sold in a rapid "sealed bid" auction process that aims to get the property into the hands of a new owner as soon as possible, according to Grant Hagerty of DTZ Barnicke in Waterloo-Wellington, the real estate company appointed as broker of record.
Hagerty said details of the inn's sealed-bid auction have been distributed to about 200 operators of inns and bed and breakfast properties, as well as other businesses that might be interested.
The sealed-bid auction closes on June 30 at 4 p.m.
Hagerty said the intent is to get a "fast and furious" serious bid process going. He said the seller, Tuerr Holdings, wants to get the property into the hands of a suitable buyer and "see it go to a positive use."
The two-hectare property includes a gated three-storey Victorian home with 10 guest suites, a heated in-ground pool with poolside cabana bar and grill, tennis courts and gardens, as well as meeting room facilities.
Hagerty said there are many possibilities for the property. A prospective buyer might be interested in running it as an inn or as a bed and breakfast, he said. Companies also might be interested in it as a guest house and meeting facility, and someone might even eye it as a private residence, he said.
"We are looking at as diverse a range as possible," he said.
There is no starting price for the bids, but the advantage of having a sealed-bid process with a short time frame is that it encourages serious buyers to put their best offers forward. "If they don't, someone else will," Hagerty said. "What we are trying to do is create a competitive bid situation."
Tuerr Holdings hopes to select the best offer on July 3, and finalize the sale by the end of July.
