Shopping Centers Today

NOV 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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46 S C T / N O V E M B E R 2 0 1 8 found jewelry stores, we found day cares, we found restau- rants, we found the perfect buyers that wanted to come in and buy the property in tertiary markets." One of the main reasons auctions have become more popular is the increased use of technology. "It has gotten a lot more sophisticated," said Drury. "We provide real-time data to both the brokerage community and the sellers. We have new dashboards that the sellers and the brokers have access to if they are working on the platform to see all the web traffic. There is a really cool map of the world that shows you where all the web hits are coming from." Typically, properties listed on the Ten-X platform are marketed for 48 days beforea live-bid event. "We touch pretty much every possible marketing media there is, and so the sellers can see all of this [in] real time — they can see who is in the website," Drury said. "On live-bid days, we can actually see who the registered bidders are [who are]watching the assets on the platform. This real-time data makes it easier for sellers to make decisions." Ten-X also provides valuable market data during the process, which helps align seller expectations with what buyers in the market are actually willing to pay. "You get a lot of data along the way, and that helps drive correct pric- ing," said Drury. "If the asset is really worth $1 million, but the seller thinks it is worth $2.5 million or $3 million, that will flush out during the process, and the true value on the assets does come out in the end." Auction firms have been careful to nurture their relationships with the brokerage communityso asnot to be seen as disintermediating."The brokers that use the platform really like it, once they get to understand it and get comfortable with it, because we do a lot of the hard work," said Drury. "They don't have to write offers and counteroffers, and we spend enormous amounts of money on marketing every year. We do all the contracts, we manage the transaction part of it, the escrows and all that. So they do what they do best, and that's sell the real estate." Ten-X charges a 5 percent fee to the buyer, based on the final selling price, while brokers continue to receive their standard commission from the seller. Williams & Williams has increased its business with JLL over the past few years. "I think as they see their colleagues utilizing auction as a disposition method and they see that it is working, those brokers can confidently go to their cli- ents with our story," said Fitzwilson.Williams & Williams combines live on-site bidding with simultaneous online bidding. "Today we bring bidders and buyers from over 200 countries and territories, so that is a lot different than how auctions were 20 years ago." Sellers using Williams & Williams can expect a 75-day process from the time of listing to the closed sale,Fitzwilson says. Typically, the first seven to 10days aredevoted to gathering due diligence documents, and then information aboutthe property is distributed directly to targeted potential buyers. Then there are 45 days of mar- keting before theauction is held. Finally, there is a required closing within 30 days. "We think auction has a definite place in this business, and it works, based on our recent experience," said Kelly. "The proof is in the pudding." Q "They were good retail locations, but they were deed-restricted."

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