"To a lot of people, starting a new real estate business at thistime seems exceedingly risky, but my entire career has been gearedto providing solutions to challenging markets. There's no bettertime to offer fast solutions in the capital markets," Dilibertosays. "Auction and advisory experience along with an ability toraise financing for our clients is essential in solving theproblems many owners face today, some of whom have never livedthrough a difficult real estate market."

|

Diliberto says the auction market has changed over the years.Twenty years ago an auction was considered a last-ditch effort tosell a distressed property. But as the economy has ebbed andflowed, the auction process has become more mainstream and notalways about distress. During the last ten years, Diliberto says hehas seen more corporate and private owners selling high-profile andtrophy assets at auction.

|

As a prime example, he cites the auction of Intel's 428,000-SF,68-acre manufacturing plant in San Juan, Puerto Rico. He also citesa National Auctioneers Association report that stated in 2008auction sales in the US reached $268.4 billion. Of that, 21.8% orroughly $58.2 billion was real estate related.

|

"Today, the auction has reached an elevated plateau ofacceptance as the go-to accelerated marketing method for some ofthe most desirable office buildings, vacation properties, newresidential inventories, shopping malls, loan portfolios and realestate businesses," Diliberto says. "While auctions can be theend-game exit strategy, it's not always the case."

|

As a result companies need to adjust their business model toreach these clients, still, Diliberto says, a company shouldn'tprovide only auction services.

|

"The company that provides only auction services in today'smarket is a one-trick pony," he says. "Our advisory-based platformprovides consulting services, leading to solutions by generatingfinancing, enhancing value, workouts and turn-arounds, ownershiprestructures or loan sales. When accelerating a sale is ideal, theauction requires only four to six weeks to complete."

|

Diliberto Real Estate Services has its first auction lined upfor February 10. The firm is auctioning the newly renovated20,000-square-foot building at 2248 S. Michigan Ave. Thethree-story building contains both office and retail space. It isowned by Steve Kmak, a local resident and international musician.Pricing details were not disclosed.

|

"It's one of the finest properties on South Michigan Avenue,which makes it difficult to value," says David Schy, VP ofDiliberto Real Estate Services. "Secondly, the property appeals toinvestors and many different user types. And finally, the seller isoffering seller financing, which is essential in this market. Ineach case, the auction will define value openly and publicly, whilegiving buyers in today's market an opportunity to buy at a greatprice. Sellers are willing to pass along a discount in exchange fora time-dated sale."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.