About 40 people gathered in downtown San Luis Obispo on Tuesday morning for the F. McLintocks Saloon and Dining House property foreclosure auction.
The bidding was expected to be competitive, but the crowd remained silent, with no one submitting a bid. As a result, the property now belongs to Shell Beach Land Company, the group that holds the highest priority lien on the business and initiated the foreclosure auction to recover an outstanding loan.
Attorneys representing the new owners say they will "take a step back and consider options," adding that the only certainty is that they will not be reopening the restaurant.
WATCH: 'It had great vibes': Locals concerned about future of F. McLintocks building
According to Ty Green, the attorney for the company holding the second priority lien, six liens were taken out against the property. As a result of the foreclosure, five of those liens, including his client's, will receive nothing.
A review of documents at the San Luis Obispo County Clerk-Recorder's Office revealed three deeds of trust on the property. All three involved Toney Breault, the former owner who died in January at the age of 54.
Pat Palangi, with Pacifica Commercial Realty, has been working to sell the property for the past six months. His company plans to reach out to the new owners to see if they want to continue that effort.
"The new owners who took the property over will decide how to market the property or likely put it back on the market," Palangi said.
Palangi noted that now that the property is debt-free, aside from property taxes, selling it may be easier.
"I expect the property will be back advertised on the market in the short term," he said.
Several prospective buyers who spoke with KSBY News after the auction said they wanted to do more research on the property before making a bid and will watch to see if it returns to the market.
