(Editor’s note: This post is sponsored content. It does not reflect the opinions of Midwest Real Estate News.)
While the real estate market continues to show signs of opportunity, the auction is once again gaining popularity in the commercial real estate industry. One example is a major developer and financier of Chicagoland real estate that has decided to sell a surplus office complex in a suburb of St. Louis, Missouri.
Once priced at $1.8 million, the property is now offered with a published reserve of $640,000, making it a great investment opportunity, as rents support annual revenue near $400,000.
In a world of “online auctions,” most real estate investors still concede that a live auction event creates the most comfort for them. According to the terms of this sale, that’s exactly how the auction will be handled.
The auction is scheduled to take place at the Maryland Heights Community Center. Diliberto Real Estate Services, LLC, a real estate consulting and auction firm, is advising with local auctioneer and broke Gordon Greene of Hanna Chartwell in a traditional live auction event. The gavel is set to fall on Feb. 26 at noon for the 35,860-square-foot building. Openers? Around one-third of the last asking price.
According to Frank Diliberto of Diliberto Real Estate, “A well-qualified auction seller allows the auction to do its job and define value via competition.”
“At $640,000, bidders are confident there is room to make a market and still grab a nice deal,” Diliberto added.
“Online auctions have a place as an enhancement to a live auction event, but looking face to face with bidders offers a real connection between the buyer and auctioneer,” comments Gordon Greene, a veteran auctioneer who will call the auction at the Maryland Heights Community center on Feb. 26.
The property is suited for investors or users, offering over 35,000 square feet for single and multiple tenants. A total of 124 parking spaces are set on several acres. While currently vacant, the property has a potential revenue of over $400,000, with fitting for the ideal tenant. Lease rates run from under $10 per foot, to over $18 in the general areas.
Diliberto believes the current real estate market and economy are opening doors for private capital to step into real estate. But auctions can provide the necessary test of value that allows investors, especially those not currently in real estate, to comfortably buy. Buyers seeking better yields are noted as one motivating factor.
Interested bidders are encouraged to obtain a full bidder’s package, including the terms of sale, by calling 855-460-2437. Bidder’s seminars are in progress for most of February.