CLEVELAND-Hilco Real Estate is hosting a bankruptcy auction for a parking garage built here in 2005 for more than $25 million, which included air rights for a planned 14-story condominium tower that never materialized. Harbor Group is a stalking horse bidder for the property, so bidders will have to beat the company’s offer of $7.8 million by the auction deadline of June 20.

The garage’s owner, AmTrust Bank, filed for bankruptcy protection in November 2009 and was taken over by New York Community Bank. AmTrust’s subsidiaries, which includes AmFin Real Estate Investments Inc., are still working out asset issues in court.

A condo project was planned to go over the top of the garage, located at 515 Euclid Ave., at the corner of Euclid and East Sixth Street. The property also includes 8,242 square feet of retail, which is 70% leased through June 2019. Geoffrey Schnipper, VP at Hilco, tells GlobeSt.com that there were never any plans submitted to the city for the condo project. “The garage can accommodate the tower, and the rights are included in the purchase.”

He says the 524-space garage generated more than $1.2 million in gross revenue in 2010, with a net operating income of $602,084, and annual retail revenue of about $81,000. A management contract with Ampco is in place through January 2015.

The garage was reportedly built with $16 million in bonds from the Cleveland-Cuyahoga County Port Authority and $2 million in bonds from the city, which will transfer a TIF agreement to the buyer. The auction is scheduled for June 22.