Don’t Auction That Property!

A lender recently took a 73,000 SF office building to auction in metro Atlanta. They used a popular auction site. The highest bidder was at $3.6 million. The highest bidder failed to pay the earnest money and failed to close. When talking to their attorney, he told them if you want to sell office buildings call Michael Bull. He loves office for some reason and is selling them well.

We ran a full marketing process and sold it to an all-cash buyer at $4.1 million. One half million more than the property brought at auction!

There are lots of reasons why our marketing process nets you more than auctions. More on that in a future monthly tip. You probably want to more about the marketing process we ran that created so much more value. Here are some tidbits.

We created an enticing offering memorandum and sent it to thousands of investors and thousands of office users. We also marketing it in 7 email blasts, 14 marketing systems and 40 websites. We created a competitive environment.

It helps when you believe in your product. I’m a firm believer the office sector will recover much quicker than people think. It’s about supply and demand. Some office buildings will get torn down. Some will get converted to other uses. New supply has stopped. Demand will increase as the labor market weakens and more companies see the value of having their people together. Add the increased demand for normal population and job growth and you have the perfect recipe for improved performance and values.

If you or your borrowers want to sell office properties, contact Michael Bull, CCIM at Michael@BullRealty.com or 404-876-1640 x 101.

Michael Bull, CCIM
CEO, Bull Realty
404-876-1640 x101
Michael@BullRealty.com