There’s a common misperception that online auctions are a transaction method reserved for distressed assets. On the contrary, online auctions are a way to accelerate the transaction of any type of property while ensuring certainty and transparency.
When 2670 Union Avenue, a Class B office property located outside of downtown Memphis, Tennessee, first came to Ten-X’s platform, it was at 92% occupancy with many long-term tenants. The owner chose to sell not because of any flaws or problems with the property, but because of a desire to free up capital for further industrial investments.
In fact, this property did not initially go to auction. But the property went under contract and fell out not once, but twice. As interest rates continued to rise, it was time to take a different approach.
Landon Williams, the property’s listing broker and a Senior Vice President at Cushman & Wakefield, was well-versed in Memphis’s office market and had successfully closed multiple deals on the Ten-X platform. From his experience, he knew that Ten-X could maximize the property’s exposure and create a sense of urgency. He partnered with Ten-X’s Casey Harrell and Jarrett Garbee to give the property a marketing push that vastly expanded the listing’s reach and created a global buyer pool.
“Due to a tightened timeline, we needed a more definitive process, and Ten-X delivered,” said Williams. “The platform exposed the property to a broad market, creating a competitive bidding scenario that drove up value.”
When it came time for the auction, the competition began. The property received 17 bids and sold for $6,850,750, going from list to close in just 91 days.
An office building with long-term tenants and strong local interest might not seem like a typical auction property. However, in a challenging market, the right approach made all the difference. Thanks to the collaboration between the Ten-X Tennessee team and the Cushman & Wakefield team, we turned this into a successful transaction for the buyer, seller, and broker.
Interested in reading more about the Memphis CRE market? Our September 2024 BID Magazine is now available, with a special spotlight on Tennessee. Download your free digital copy here!