Sale was conducted as a Lender Owned Auction – with minimum opening bid by use of a Hybrid Sealed Bid format.
Due Diligence package complete: financials, ESA, Survey, roof report, condition report and suggested punch list for fire suppression system.
Three inspection periods were available for bidders, private showings by Tranzon or local broker, as needed.
7,000 brochures sent to interested parties across USA, Canada & overseas
710,000 Electronic Brochures sent over course of campaign
Significant National and Regional Display Advertising in: Wall Street Journal, Memphis, Atlanta, Nashville, LA Times, Chicago, New Orleans & various Business Journals in SE USA
Property Postings to Loopnet, Propertyline, CoStar, Realtor.com, Ebay, NAA & Tranzon websites
Approx. Number of calls made through telemarketing efforts: 240+ (averaged over three (3) contacts with every potential purchaser)
Update conference calls with Client: Four (4) throughout the course of the transaction, in addition to numerous unscheduled update correspondence throughout the campaign.
Total Inquiries over a five week Marketing Campaign: 70
Registered Bidders at auction with required deposit & entering bid: three (3) representing two (2) separate states: TN, CA
Broker’s who participated by registering bidders for the Auction: Two (2)
Sale Price achieved at the auction: $2,851,500 – Seller sold the property, this was the highest bona fide offer received in four years of marketing. Property sold to CA bidder who was attracted to the property through his broker. Tranzon was introduced to the broker by being a speaker at the national MBA/CREF convention.
Difference between high sealed bid and final auction bid: $2,000,000 (opening Bid) – final sales price: $2,851,500 or a 30.4% total increase.
Closed Escrow with final High Bidder in forty-one (41) Days
Seller was exceptionally pleased with the final results and end to an expensive maintenance and liability intense property.
A national CMBS Special Servicer retained Tranzon to market and conduct an auction/sales event for this multi-use asset. Having been on the market for five years by the time Tranzon became involved was akin to raising the dead. The previous broker, who partnered with Tranzon on the auction sale, was extremely diligent in getting virtually all regional parties that may have some interest in the property at least aware of the asset and its attributes. Tranzon Asset Advisors worked through the issue to present an entirely new message to the marketplace and solve the client’s ongoing responsibilities to this property.
The Hybrid-Sealed-Bid Auction Event©, that Tranzon Asset Advisors has been the leader in improving and progressing as an aid to its clients, resulted in achieving the client’s goal. This client and the underlying bondholders wanted a sale to occur at almost any price. The fact we were able to exceed their reserve for the auction was icing on the cake.
Under the sealed bid portion the main property (34 acres & 3 structures) was contracted and sold without holding a live auction. Only one bidder, from California, was willing to make a bid. After professional negotiations our team was able to secure from that bidder an impressive voluntary raise of their bid to a figure above the seller’s reserve. On the bank parcel, two bids were received with both being within 10% of each other and our team commenced a live auction. These two bidders, one local and one from North Mississippi battled extensively for the right of ownership. Eventually the local bidder (also the land-lease tenant) was declared the high bidder.
From around the country our firm was able to generate inquiries that produced three registered bidders all of whom were required to deliver a $100,000 certified check in order to bid. Each and every year our extensive database continues to grow and become much more refined. The winning bidder in this instance was originally introduced to our firm through our constant attendance at important out-of-industry conventions and trade shows. The combination of our asset knowledge, coupled with our outstanding and transparent transaction concept has many bidders seeking our auctions over and over. Furthermore, research has proven that your Tranzon advisor’s access to an enormous database of purchasers for an array of asset types helps to make Tranzon the premier leader in Real Estate Auction Marketing in the United States.
Tranzon was able to create a successful exit strategy for this client, just like we can for you. Since 2000 our firm has successfully sold thousands of challenged projects just like this one, maintaining one the most enviable success records in the brokerage and accelerated marketing industry. Why?? Because we perform each and every task like it is the most important thing in the world…because it is.
