My shop is looking to sell off a few assets that have been on our books for a long time. We purchased them as part of a portfolio transaction many years ago. Over the past several years we have sold off some of these deals one at a time and now there are just two left (two office properties in a suburban market of a major MSA). They are strong performing (credit worthy tenants, high occupancy, well maintained etc.) cash flowing properties that currently have almost no leverage. The catch is they are really unsexy investments located in suburban office parks. We had them up for sale without a lot of serious interest. This is the kind of nitty gritty real estate that is no longer what most investors are looking for.
We are playing with the idea of listing these properties on Auction.com. I wanted to see if anyone here has any experience buying or selling using this website. I used to view this website as a way to sell foreclosed or distressed assets where everything was pretty much junk, but it looks like they have a few listings for some quality assets that are similar to what we are trying to sell. Our assets would come in at the very high end of the price range of deals on Auction.com. Part of our concern is will there be buyers who can afford to take down these assets? The fees are pretty steep too (5% of the sale price), but if it leads to the sale of the property we would be OK with that. Any experiences positive or negative using this service?
I have experience with them. Auction.com has really changed their image from being a distressed auctioneer to selling everything now. Regarding your price range concerns, there are still plenty of institutional buyers/HNW buyers on the website. You will get interest no matter what. Regarding the fee, you only pay if the property sells. You will be asked to set a reserve price. If the property's last bid ends below the auction price, you are not required to sell and no fees are paid. You can in fact even contact the highest bidder and begin a dialogue with them if you wish. I would give it a try seeing you have nothing to lose and just set your reserve price to what you are comfortable with. If it sells, great, if not, no lose to you.
My personal experience is that things on Auction.com sell for a higher price than if went through a broker, simply because of exposure, but I can't say if this would apply to a high priced asset such as yours.
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