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Racebrook Capital acquires real estate auction firm

The private equity firm founded by John Cuticelli will relocate Sheldon Good & Company’s headquarters from Chicago to its offices in New York, with Cuticelli taking over as chief executive officer.

A subsidiary of private equity firm Racebrook Capital has acquired the real estate auction house Sheldon Good & Company after the sale was approved by a bankruptcy court this week.

In a statement, Racebrook said its subsidiary, Racebrook Marketing Concepts, would acquire the assets of Sheldon Good, after being the original stalking horse bidder. Racebrook reportedly bid $1.2 million for the troubled company, agreeing to also pay off a $1.9 million debtor-in-possession (DIP) loan.

The DIP financing was provided by Racebrook founder John Cuticelli’s other investment firm Cuticelli Capital. Racebrook was itself founded in 2004 as a portfolio company of Warburg Pincus.

Sheldon Good filed for Chapter 11 bankruptcy in April, three months after the suicide of 52-year-old Steven Good, who was chairman and chief executive officer. Good’s father had started the business – one of the nation’s largest property auction houses – in 1965.

Cuticelli, a former Sheldon Good executive between 1989 and 1991, will now become chief executive officer and relocate the firm’s headquarters from Chicago to Racebrook’s offices in New York, the statement added.

Racebrook was created to buy distressed real estate and nonperforming commercial loans and is also targeting TALF bonds and DIP financing.