with more certainty of execution over
traditional sales methods.
(Save the dates: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24; RealShare Net Lease West comes to The California Club, Los Angeles, November 1 – 2; and RealShare Industrial 2012 comes to The Bankers Club, Miami, December 5 – 6.)
IRVINE, CA-The auction track for selling commercial real estate is gaining momentum as Sperry Van Ness International Corp. prepares to conduct a major national online real estate and loan auction this week (October 23-25). The event, composed of more than $180 million in single assets and portfolios located across the country, is aimed at companies, banks, REITs and institutional owners who want to clear their books by year’s end.
The Q4 National Online Auction event features more than 100 income-producing properties, including multifamily, retail, office, industrial, hospitality and special-use assets and loans. All assets are listed with aggressively published opening or minimum bids, and most will be auctioned with no hidden reserves. Also, there is only a 2.5% buyer’s premium, and all listing fees are shared with buy-side brokers 50/50.
Kevin Maggiacomo, president and CEO of SVN, tells GlobeSt.com that the auction in CRE works on a multitude of levels. “The format calls for a completely transparent approach to the sale of a property. In an environment fraught with the opaque and quiet marketing of properties, auction provides for an open approach to generating organized competition for an asset.”
In an auction, of course, the asset goes to the highest bidder and not necessarily the buyer who has the strongest relationship with the seller, as is often the case in the investment-sales industry, Maggiacomo points out. “So, for sellers, auction provides them with more certainty of execution over traditional sales methods. For buyers, they know that they are dealing with realistic and motivated sellers.”
Among the auction’s participants are AuctionPoint, First American Title, RW Kline Cos. and the Sperry Van Ness asset recovery team. Maggiacomo tells GlobeSt.com that AuctionPoint makes a good partner for the event because it “is not a brokerage, which is the case with other online auction companies in the industry. They are completely broker centric, empowering brokers to service their clients while keeping them involved every step of the way.”
Maggiacomo adds that the AuctionPoint executives are experienced CRE investors. “The AuctionPoint online auction platform brings technology to an industry that is rooted in traditional practices and introduces a leading-edge and current sales platform. Our SVN Q4 event will function much like other, efficient, non-CRE markets do—the NASDAQ, for example, nets together high-net-worth individuals with institutional buyers in an organized fashion in milliseconds every day, creating a true, efficient marketplace. This event isn’t the NASDAQ, but in the future, we see sellers demanding the kind of transparency and marketing that makes due diligence easier for all involved. Open, transparent bidding is what bidders want and deserve.”
Income-producing assets attract the most attention from bidders, and SVN’s event will offer non-distressed assets for sale ranging from $50,000 to more than $20 million. Triple-net, multifamily and industrial assets have attracted many bidders, and roughly 10% of the assets have received acceptable preemptive bids by buyers who want to buy the property before the bidding even begins, says Maggiacomo.
Buyers can click here for more information on bidding times, and sellers can contact firstname.lastname@example.org for upcoming event opportunities.
As GlobeSt.com previously reported exclusively, Miami-based Special Servicer LNR Partners recently sold two REO multifamily properties in Los Angeles County through the auction process at Auction.com. Amargosa Creek, a 216-unit property at 43332 Gadsden Ave. in Lancaster sold for $14,385,000, and Yukon Apartments, a 58-unit property at 13519 Yukon Ave. in Hawthorne, sold for $5,860,000 plus a buyer’s premium of $293,100.