Auction.com Completes Southeast Offering

Auction.com has achieved $453 million in sales—with over $600 million in unpaid principal balances sold—in its recent online auction of non-performing notes and commercial REO properties located throughout the Southeastern United States. The auction is its largest to date for commercial real estate assets, according to the firm.

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On behalf of its 10 institutional clients participating, Auction.com sold 187 assets, and garnered a purchase price to reserve rate of 111 percent.

The largest asset offered in the auction was the Chattanooga-based, 823,014-sq.-ft. Northgate Mall situated on 47 acres. CBL & Associates Properties signed a definitive agreement on Sept. 22 to acquire the center for $11.5 million.

"This transaction represents a unique and special opportunity for us to grow our presence in our hometown. Since CBL was formed in 1978 we have time and again demonstrated our tremendous confidence in Chattanooga by investing in its growth. The acquisition of Northgate Mall is just another example of that commitment,” CBL President and CEO Stephen Lebovitz said in a statement. “We believe that the property can be better positioned to meet the growing need for retail in the area. We are already exploring the best way to reposition the center to serve the area and will look forward to making additional announcements as plans solidify."

Following the close of the acquisition, CBL plans to revitalize the property through redevelopment, which may include the addition of junior anchor stores and restaurants and repurposing the adjacent community center. CBL envisions creating a destination that will better serve the area north of the Tennessee River while complementing Hamilton Place Mall's position as the dominant fashion outlet in the market.

“Our commercial auctions continue to attract the country’s largest institutional clients, and local retail buyers who return the properties to the community,” Auction.com CEO Jeff Frieden said in a statement. “Our recovery rates for loans and REO assets are setting the bar for value.”

The properties on auction were located in Alabama, Florida, Georgia, Kentucky, Maryland, Mississippi, North Carolina, Tennessee and Virginia. Starting bids ranged from $500 to $10.5 million, and included multi-family, mobile home parks, retail, mixed-use, hotel, land, self-storage, office, industrial, and special-purpose assets.

The average purchase price paid for assets in the pool was $2.5 million. Overall, 143 commercial real estate assets were auctioned and 94 were sold for a total price of $144 million and an average purchase price of $1.5 million. In addition, 162 commercial notes were auctioned and 93 were sold for a total price of $309 million. Buyers paid an average of $3.4 million for the notes.

The online auction for both commercial real estate and loans spanned several weeks, beginning on Sept. 19 and concluding on Oct. 6.


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