A historic downtown Wilmington property will be headed for the auction block later this month.
 
Tranzon Auction – a nationwide firm that specializes in the auction of distressed commercial and residential properties – recently posted an online notice to sell off 118-122 Princess St. in the central business district. The building houses the Hell’s Kitchen bar and restaurant.
 
Blanche Chisum, Tranzon's marketing associate in Wilmington, said Thursday prospective buyers can view the property prior to the auction from 10 to 11:30 a.m. Feb. 20. She added interested buyers can also set up an appointment to view the property.

On-site bidding will begin at 10 a.m. Feb. 27, Chisum said.
 
The auction is lender-ordered.

Chisum said the group listing the building with Tranzon Auction works with various financial institutions and has a number of properties across several states, including North Carolina.
 
The two-story, 12,700-square-foot structure was formerly owned by James McFarland, a former downtown landowner and manager of 100 Block of Market Street LLC that filed for bankruptcy in 2011.
 
McFarland, who could not be reached for comment Tuesday afternoon, previously owned a number of properties in the central business district, including the historic Masonic Hall building at 125 Market St. that is now slated for a Slice Of Life restaurant.
 
Many of the firm’s properties were foreclosed upon prior to the company’s Chapter 11 bankruptcy proceeding, including the 118-122 Princess St. building.
 
Hell’s Kitchen restaurant, which acquired a new owner – Eric Laut – on Feb. 7, is currently the only tenant in the building. The site also has been upgraded to accommodate future retail, office and restaurant tenants, the notice stated.  
 
According to the notice, the buyer has 30 days to close on the building once his or her bid has been accepted during the auction. As part of the auction, the current owner is not obligated to improve the property once it’s purchased, meaning the building will be sold in its current condition.

Chisum said the historic structure has undergone numerous upgrades and repairs, including about $175,000 worth of various repairs in 2009, according to New Hanover County tax records.
 
Drew Flynn, manager of Hell’s Kitchen, said the restaurant has a long-term lease for its space and does not have plans to relocate once the building is sold.

To learn more about the auction click here.