An auction to sell the historic Holbrooke Hotel was postponed this week after owners received an offer on the troubled inn.

“The auction was postponed in order to give the offer time to go into escrow,” said Holbrooke co-owner Jim O'Brien.

He could not comment on who submitted the offer or its value until it closes escrow, O'Brien said. The auction had been scheduled Monday.

Owners are in default on the nearly $1.2 million mortgage with Citizens Bank and have been trying for months to sell the downtown Grass Valley landmark, built in 1851 at 212 W. Main St.

“They asked for an accommodation last week,” said Citizens Executive Vice President Phil Campbell. “So the auction is postponed until (12:30 p.m.) Sept. 9.”

Bank officials hope the hotel can be sold through traditional means rather than a courthouse auction, Campbell said.

“It's best for the entire community,” Campbell said.

Billed as “home of the oldest (almost) continuously operating saloon west of the Mississippi,” the Holbrooke has seen financial woes for years.

Owners marked their asking price for the Holbrooke down to $1.4 million from the $4.4 million they sought in 2008. The current ownership group bought the hotel for $2.35 million in 2005.

In January, the ownership group was left scrambling after a New Jersey-based management group abruptly pulled out of its deal to operate the hotel, leaving employees unpaid and the hotel's future in limbo.

To contact Staff Writer Kyle Magin, e-mail kmagin@theunion.com or call (530) 477-4239.