IRVINE, Calif. – November 10, 2014 – Auction.com, LLC, the nation’s leading online real estate marketplace, closed 49 commercial assets for a combined value of more than $121 million in September. Driven by a steady increase in travel, hotel properties comprised $35 million of the month’s closings.
“With the return of tourism and business travel, the hospitality industry is gaining strength and hotel revenues are increasing,” said Rick Sharga, executive vice president of Auction.com. “CRE investors interested in the hospitality segment are using our online platform as a way to quickly and effectively buy and sell both traditional and distressed properties.”
The U.S. Department of Commerce reports that spending on travel and tourism increased by 9.1 percent during the second quarter, contributing to the increasing popularity of select service hotels as investments for large REITs and private equity firms. Recent reports indicate that as the lodging industry segment diversifies, transaction volume and competition for these types of assets have also increased.
Auction.com’s recent success in auctioning the Fairfield Inn Orangeburg, a 64-key hotel located in Orangeburg, South Carolina, highlights this market trend. The asset was auctioned on July 17, and closed on Sept. 15, selling for 130 percent of the seller’s reserve price.
Other notable closings from CRE sectors in September include the following:
- Woodville Gardens, a 333-pad mobile home community on 54 acres located in Loveland, Ohio, was auctioned on Aug. 13. The sale closed on Sept. 16.
- The Terraces at University Place, a 65,112-square-foot retail center located in Charlotte, North Carolina, was auctioned on July 30. The sale closed on Sept. 3.
- A.J. Oster Industrial Building, a 50,282-square-foot single-tenant industrial building located in Yorba Linda, California, was auctioned on July 30. The sale closed on Sept. 4.
- Landmark Center, a 345,335-square-foot office building located in Jackson, Mississippi, was auctioned July 31. The sale closed on Sept. 2.
The Auction.com online platform offers complete transparency to the large pool of bidders it attracts from around the world. In turn, the competition among qualified buyers ensures that sellers’ assets are transacted at fair market value. Auction.com enables buyers and sellers to conduct transactions in a more efficient manner than previously possible by leveraging internet technology to streamline what has traditionally been a cumbersome, complicated and paperwork-intense process. To learn more about buying and selling commercial assets on Auction.com, please contact Joseph Cuomo, senior vice president and director of business development at firstname.lastname@example.org or (305) 503-2637.