On Aug. 2, J. P. King Auction Co. announced the sale with an exclamation point: “Montana marina on beautiful Flathead Lake is under contract!”

But the sale of Lakeside Marina and Restaurant has fallen through.

On Monday, Craig King, president and chief executive officer of Alabama-based J.P. King, confirmed that the buyer, the McKee Group of Colorado, had opted out of the contract.

“It has officially been terminated,” he said.

King said the next step will be to return to the four or five active bidders who participated in the auction this summer and see whether there might still be interest in a deal.

“I feel like we’ve got a pretty good group to try to assist,” he said.

According to J. P. King’s description of the Lakeside Marina property, it offers 136 boat slips, a restaurant of more than 3,000 square feet, office space and more than 500 feet of shoreline.

J. P. King, which typically handles high-end real estate deals, has described Lakeside Marina as a 3-acre waterfront property adjacent to a fish-rich lake and close to snow skiing, Glacier National Park and recreational environs boasting “the rustic beauty of Northwest Montana.”

In August, the buyer was identified as the McKee Group of Colorado. Dick McKee, principal, said then that the sale amount was more than $3 million. The property had been listed at $5.5 million before the auction.

McKee did not respond Monday to phone calls seeking comment.

In August, he told the Daily Inter Lake he felt fortunate to have the opportunity to purchase the Lakeside Marina and Restaurant.

“I think we understand or at least we have a decent grasp on what this means to the community, and I think that’s very important for our success,” McKee said then.

David Fetveit, president of the board for the Lakeside-Somers Chambers of Commerce, said Monday that he was disappointed the auction was ultimately unsuccessful. But he, like King, said he hopes one of the other bidders might show new interest and be able to consummate a deal.

Reporter Duncan Adams may be reached at [email protected] or 758-4407.