ADELPHIA BUILDING OWNER LOOKING TO CUT LOSSES

Local real estate professionals find it very unlikely that the owner of the former Adelphia Operations center will get anywhere the $8 million he seeks from the sale of the building. Bogdan Klek and his banker were recent visitors to Coudersport in an effort to recoup as much of their investment as they can -- and prevent the massive Adelphia Operations Building from becoming a casualty of the wrecker's ball or falling into disrepair.

Unsuccessful in his efforts to "flip" the lavish property, Klek has at least arranged to have utilities reconnected to provide security and keep the pipes from freezing. That's an improvement over the building's status of a month ago.

He'd like nothing better than to sell the building and cut his losses, but chances of anyone stepping forward to buy it at anywhere near the $3.6 million he paid are seen by local real estate experts as remote at best.

"If the three most important factors in real estate values truly are 'location, location and location,' then this property is highly over-valued at $3.6 million," said one Potter County real estate professional. "No one is likely to pay even $3 million for it. It's simply the wrong kind of building for the setting where it's located."

A highly leveraged Illinois real estate speculator, Klek is still trying to sell the property through an internet-based auction, asking for a minimum bid of $8 million that has brought chuckles among the local real estate industry.

His most recent listing calls for sealed bids to be submitted by Dec. 18 and offers showings by appointment.

Klek had initially tried to find tenants to lease space in the building, which cost an estimated $30 million to construct in 2000-01. He had said from the start that he had no intention of ultimately owning, much less occupying, the massive office complex.

At this point, he is not averse to any option that would cut his losses, but the odds are against his finding a tenant who would be willing to pay rent high enough even to cover operational expenses of opening the building

Klek's purchase included the 72,000- square-foot brick, marble, granite and bronze building, designed to accommodate 275 employees, as well as about 80,000 sq. ft. of asphalt parking for 260 vehicles across four different lots.

The deal between the Adelphia estate and Bogdan Klek closed after two online auctions, two defaulted buyers, and an embezzlement case victimizing a wouldbe buyer from Ireland who lost $1 million.

Ironically, Klek arranged for the purchase from the Adelphia estate through an internet based auction by LFC.com, the same company that has been listing the property for him.