A beachfront home in Southampton, New York, appraised at $63 million — half of an estate marketed as “La Dune” — recently landed in bankruptcy court just days before a foreclosure auction, court papers show.
The house at 366 Gin Lane is wrapped up in foreclosure proceedings stemming from an unpaid $26 million mortgage that has ballooned to about $40 million since 2019, according to Suffolk County Court records. The house is adjacent to another, larger waterfront mansion that is also in default. Both homes are controlled by once-ascendant art publisher and philanthropist Louise Blouin, bankruptcy court papers show.
The entire compound was listed for sale at $140 million as recently as January 2020, according to real estate website Out East. The smaller home brought in $750 000 of rental income in 2021 and $250 000 in 2020, bankruptcy papers show.
The estate boasts 22 000 square feet (2 044 square metres) of interior between the two homes and is situated on 4.2 acres that includes 400 feet of bulkhead beachfront, according to a listing from Sotheby’s International Realty. Buyers could also enjoy two custom gunite pools and an all-weather tennis court.
The smaller home was set to be auctioned on May 2 to repay the mortgage. Blouin signed off on the property’s bankruptcy filing on Saturday, just two days before the scheduled auction. Bankruptcy filings typically halt lender efforts to collect on unpaid debts.
The property is in the process of being refinanced and the deal needs more time to close, a lawyer for the home said in court papers filed in Suffolk County last week. The mortgage at issue was taken out to upgrade the home so it could bring in a higher sale price, but the Covid-19 pandemic chilled interest in the property, according to the lawyer.
Blouin’s lawyers are seeking to “achieve a swift and amicable resolution for all parties concerned” with the mortgage dispute, spokesperson Melanie A. Bonvicino said in an emailed statement.
A preliminary hearing for the bankruptcy is set for May 25.
The case is Brickchurch Enterprises Inc., 8-22-70914-ast, US Bankruptcy Court for the Eastern District of New York (Central Islip).
© 2022 Bloomberg
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