CASE STUDIES - SVN AUCTIONWORKS

SHARP CORNER SCHOOL



SCHOOL DISTRICT #68
Sharp Corner School

Government Owned Real Estate
Skokie, IL

Sale Price: $2,216,339

BUSINESS CHALLENGE

Sharp Corner School for decades served as a visible, well known private school located in an upscale Northern Cook County suburban neighborhood of Chicago. The vacant property consisted of 63,900 square feet of commercial improved space situated on 3 acres and included 25 classrooms, cafeteria, gymnasium and administrative offices. This iconic property remained vacant for over two years after the prominent private school vacated due to need for further expansion. The staff of the Superintendent's office for the school district with board approval originally placed the property on the market "for sale or for lease" and internally attempted to represent the property in negotiations with potentially interested parties.

SVN AUCTIONWORKS SOLUTION

The SVN Team advised and worked with the school district's Superintendent's staff and outside counsel to develop a framework consistent with the state school code requirements for disposition of the property in a highly publicized and structured auction sale event. The school district engaged SVN as a consultant to implement the marketing plan and auction process with full board member approval provided at the board's regularly held, monthly board meetings. The SVN team worked closely with the school district staff officials and town village representatives to consolidate multiple property identification numbers. This resulted in a re-platting and recording of the property with a new survey, restoring the property to the tax rolls for ultimate optimization of future real estate revenue collections.

RESULTS

The auction drew interest from numerous ethnicity groups and organizations interested in existing and multiple redevelopment uses. The auction team's target marketing and community outreach generated positive public relations and pre-sale exposure that enhanced the paid national, regional and local marketing plan and advertising campaign. The approved auction process required interested parties and entities to submit in advance of the open out-cry auction their initial written offer(s) and all their bidder qualification documents in order to participate in the live auction event. The auction concluded with an all cash high bid of $2,216,339 from the local Muslim Community Center for Organization for use as a private school and community center and the sale received 100% board approval.

OFFICE BUILDING



31100 Plymouth Rd
Livonia, MI
Office Building
Former AT&T Call Center
Privately Owned Real Estate

Sale Price: $736,700

BUSINESS CHALLENGE

This 110,000 SF, former AT&T call center building in Livonia, Michigan had been vacant for several years. Built in 1972, It required a lot of capital to comply with current code enforcement issues. The building was situated in an industrial area, well outside of the office submarket of Livonia; this made it very difficult to determine market value as there were no truly comparable, recent sales to be used in pricing the property. Prior to listing with SVN AuctionWorks, the building had been marketed for sale for three years, during which time there was limited interest from buyers.

SVN AUCTIONWORKS SOLUTION

The SVN AuctionWorks team implemented a multi-state targeted marketing plan to generate a higher level of interest from both possible end users and investors. The plan included marketing the property with an attractive opening bid (the seller had to have reasonable expectations in terms of pricing) and an aggressive target marketing and advertising plan aimed at increasing awareness on both the local and regional levels.

RESULTS

Initially, the property received solid interest, but no bids. Two months later, the seller agreed to reduce the suggested opening bid. This generated a bidding war that resulted in three bids from qualified bidders. The initial bids received were close in price--ranging from $550,000 to $600,000--which indicated that they were close to the true market value of the property. After the SVN AuctionWorks team negotiated with each bidder and called for best and final bids, a sale price of $736,700 was achieved.

REFERRING BROKER TESTIMONIAL

"I recommend SVN AuctionWorks! I was having a difficult time selling a 110,000 square foot vacant office building (built in 1972) in Livonia, Michigan. After more than two dozen tours with qualified investors and users, nobody was willing to make an offer at the list price, or even near the price. After two years of marketing, I contacted Diana Peterson to assist in marketing the property through an auction. The concept of an attractive suggested opening bid, with a date certain bid and aggressive marketing, created the demand we were looking for. At the auction date, we received two offers. We were able to bid up the offers. The selected bidder wired a non-refundable deposit and closed within 30 days. The auction process and SVN AuctionWorks was the key to the closing."

- Steve Eisenshtadt, SIOR, CCIM, JD Senior Vice President at Friedman Integrated Real Estate Solutions

OFFICE/MEDICAL BUILDING



3939 North Wilke Road
Arlington Heights, IL
Office/Medical Building
Privately Owned Real Estate

Sale Price: $700,000

BUSINESS CHALLENGE

This approximately 13,578 sf multi-tenant, stand alone, single-story, brick building on 1.32 acres had been listed for sale on the traditional market for over a year with an asking price of $850,000. While approximately 3,473 sf (one of the three units) was leased, the lease was on a month to month basis and the tenant had the right to terminate the lease upon the sale of the building.

The traditional for sale listing generated little to no interest with an asking price of $850,000, so the owner authorized a $100,000 price cut. Even with an asking price of $750,000, the building continued to garner very little interest and only a few showings. It was on the market three times as a traditional listing - once in 2007, once in 2009, and then again for 6 months in 2014. After receiving an offer of $300,000 for the building and countering that offer with $350,000, the owner ultimately chose SVN AuctionWorks to auction the property in its November, 2014 online auction.

SVN AUCTIONWORKS SOLUTION

The SVN AuctionWorks team recommended and the owner approved a minimum bid or published reserve price of $425,000, in order to generate maximum interest in the building. When creating the brochure and adding photos to all of its listings for the property, the SVN AuctionWorks team improved upon the previous broker's marketing efforts which had primarily shown the small portion of the building that was in raw condition. By comparison, the SVN AuctionWorks team included many more interior photos highlighting the majority of the space which was finished and in excellent, move-in ready condition. The SVN AuctionWorks team also put together an extensive due diligence package. Finally, the SVN AuctionWorks team featured the property in multiple advertisements and PR efforts, and extensively target marketed the property to the over 12,000 brokers and investors in the SVN AuctionWorks proprietary database, including brokers active in the area and surrounding areas of the property.

RESULTS

The SVN AuctionWorks team's extensive target marketing not only generated more showings than the property had previously enjoyed, but identified three qualified, serious bidders. After all of the advertising for the property had run, and approximately 3 weeks before the online auction was scheduled to begin, the SVN AuctionWorks team advised the owner to allow SVN to call for all best and final bids. The owner concurred and the SVN AuctionWorks team was able to ignite a pre-auction bidding war. This bidding war resulted in several offers and counter offers between two of the three serious bidders, with both bidders being unaware of the number of other bids being placed or the amount of other bids being placed. This ultimately resulted in a high bid and sale of the property for $700,000, with the second bidder requesting that their $614,250 bid be held as a backup bid. The sale of the property closed within two weeks, prior to the commencement of the online auction, with a sale price 165% greater than the minimum bid set for the auction and 233% greater than the most recent offer for the property.

SELLER TESTIMONIAL

"We worked with SVN AuctionWorks to sell a property in north Arlington Heights that was incredibly resistant to traditional marketing methods. We were very pleased with results that exceeded our expectations. From my perspective, I think the success lay in Diana Peterson and her team's consistent efforts to over deliver - prompt responses to phone calls, quick and carefully crafted responses to email, and great service over all. Diana and her team at SVN AuctionWorks are an outstanding business ally."

- Bob Rourke, Premises Group, LLC

TRIPLEX PROPERTY



7650-7652-7656 S Colfax Ave
8036 S Kingston Ave
Chicago, IL
Chicago Multi-Family Portfolio Sale
Investment Fund Owned Real Estate

Sale Price: $648,000

BUSINESS CHALLENGE

An investment fund based in New York City purchased the notes to a large number of commercial and residential properties located primarily in the South Side of Chicago. The fund's asset disposition team members had limited knowledge of the Chicago market and primarily were relying on local broker price opinions to determine market value.

SVN AUCTIONWORKS SOLUTION

The SVN AuctionWorks team toured the properties with the fund's asset disposition team in order to assist in determining which properties to keep in their portfolio; which to dispose of quickly through auction; and which to offer through the traditional sale method. The SVN AuctionWorks team recommended bringing the multi-family properties (four triplexes) to auction, beginning with the three that were in a better location than the fourth. The SVN AuctionWorks team recommended a minimum bid (published reserve price) of $125,000 per property, in order to attract investors as well as potential home owners.

RESULTS

The online auction of the three, higher value triplexes attracted over a dozen qualified bidders and resulted in a pre-auction bidding war. Ultimately, the highest price offered per property came from one investor who offered $162,000 per property with a quick, cash closing. The SVN AuctionWorks team brought the fourth triplex to auction thirty days later, and sold it pre-auction for $162,000 to the same investor who bought the other triplexes.

REFERRING BROKER TESTIMONIAL

"I have worked with Diana for the past two years and have been quite impressed with the way she operates SVN AuctionWorks and the results that she has achieved. I introduced Diana and the SVN AuctionWorks platform to a number of clients, she has achieved results beyond their expectations. Diana is extremely knowledgeable about the auction process. She has a very well established business structure and a professional manner that puts clients at ease. Many clients are uncertain about the auction template but when they commit to the platform and allow Diana to market the asset and manage the process, they quickly become believers with regard to the value of the auction platform. I strongly recommend Diana and AuctionWorks to any property owner looking for a dedicated professional and proven transaction process."

- Vince D'Amico, Senior Advisor at SVN Chicago Commercial

CHICAGO RETAIL/OFFICE CONDO


1133 South Wabash Ave, Unit #C2
Chicago, IL
Retail/Office Condo
Bank Owned Real Estate

Sale Price: $194,250

BUSINESS CHALLENGE

This approximately 1,450 sf commercial condominium unit located in Chicago's South Loop had been listed for sale on the traditional market for over a year with an asking price of $169,000. The traditional for sale listing generated only a few lowball offers, so the bank authorized an auction of the property and chose SVN AuctionWorks to auction the property in its November, 2014 online auction.

This street level retail/office condo unit was in a high visibility location and fully leased, producing rental income of $2,760/month. However, the tenant's lease expired July 31, 2015 and contained a five year renewal option that the tenant had not yet exercised nor indicated any intent to exercise. As such, potential purchasers who were end users were discouraged by the remaining term of the lease and investors were discouraged by the lack of certainty regarding potential lease renewal and continuing cash flow.

SVN AUCTIONWORKS SOLUTION

The SVN AuctionWorks team recommended and the bank approved a minimum bid of $100,000, in order to generate maximum interest in the property. The SVN AuctionWorks team featured the property in multiple advertisements and PR efforts, and extensively target marketed the property to over 12,000 brokers and investors in the SVN AuctionWorks proprietary database, including brokers active in the area and surrounding areas of the property. Shortly after the SVN AuctionWorks team concluded it initial target marketing campaign, the SVN AuctionWorks team received an offer of $165,000 from a prospective buyer who had previously looked at the property. Since this was by far the highest offer the bank had received to date, the bank was ready to accept this offer. At the advice of the SVN AuctionWorks team, the bank did not immediately accept the offer but instead let the SVN AuctionWorks team conclude the rest of its advertising, PR and target marketing efforts for the property while remaining in weekly contact with the prospect who continued to be the high bidder with a bid of $165,000.

RESULTS

The SVN AuctionWorks team's extensive target marketing not only generated more showings than the property had previously enjoyed, but identified 10 qualified bidders. After all of the advertising for the property had run, and approximately 3 weeks before the online auction was scheduled to begin, the SVN AuctionWorks team advised the bank to allow the SVN AuctionWorks team to call for all best and final bids. The bank asset manager concurred and the SVN AuctionWorks team was able to ignite a pre-auction bidding war. This bidding war resulted in five offers, including an offer of $194,250 from the prospective buyer who previously had offered $165,000. This ultimately resulted in a high bid and sale of the property for $194,250. The sale of the property closed within four weeks, with a sale price 94% greater than the minimum bid set for the auction and 49% greater than the most recent offer for the property.

UNIQUE LUXURY HOME



11315 77th St
Burr Ridge, IL
Luxury Single Family Home
Privately Owned Real Estate

Sale Price: $1,470,000

BUSINESS CHALLENGE

The owner of this custom built home had decorated and furnished it in a style not likely to be widely appealing to most buyers in the area of the home. As a result, despite its extraordinarily fine level of finish and the money the owner had spent, it was hard to determine the home’s true market value through the traditional sale method. The owner had been “chasing the market” for several years, during which time he continually lowered the price and still did not achieve the desired sale. Ready to retire and “move on” with his life, he listed the property with AuctionWorks with an unpublished reserve price of $1,350,000.

AUCTIONWORKS SOLUTION

The AuctionWorks team set a suggested opening bid of $1,250,000 for the online auction; extensively marketed the home to local brokers; advertised the home through a wide range of electronic and print advertising; and promoted the home to local media through a press release and other PR efforts.

RESULTS

The home sold in a pre-auction bidding war for $1,470,000—an amount that well exceeded the seller’s unpublished reserve price of $1,350,000-- and closed in less than 30 days.

SELLER TESTIMONIAL

"After listing my multimillion dollar Burr Ridge, IL home for over three years with four different realtors and getting few showings and no bids, I turned my decades of marketing and ERISA retirement plans due diligence experience on non-distressed luxury home auctioneers. After one year of due diligence, I teamed with Chicago's AuctionWorks, structured the agreements and worked closely with their staff to customize my own accelerated marketing campaign. In a pre-auction bidding war that resulted in a cash offer, the house sold during the first month for more than my unpublished reserve with backup offers exceeding my expectations. Marketing, not listing, is the key to successful home sales. To reduce the cost of carry beyond the time certain outcome and the direct marketing expenses, our broad campaign included heavy emphasis on pre-auction bids, non-traditional advertising, media placement and aggressive PR. Because most of the serious inquiries came from foreigners, invaluable proprietary databases were used to target select control groups, local brokers, homeowners, foreign investors and underserved multicultural groups."

- Phil Chiricotti, Non-Distressed Luxury Home Seller

SINGLE FAMILY HOME IN A HIGHLY DESIRABLE LOCATION



1727 N Dayton St
Chicago, IL
Luxury Single Family Home
Privately Owned Real Estate

Sale Price: $1,467,750

BUSINESS CHALLENGE

Intending to extensively renovate it, the owner of this single family home in Chicago’s highly desirable Lincoln Park neighborhood purchased it for $1,350,000, one year prior to listing it with AuctionWorks. In the process of selling a different home, the owner experienced going under contract but not selling several times, due to buyers’ financing contingencies. Rather than repeat this frustrating experience, he listed his Lincoln Park home with AuctionWorks—ensuring: competitive bidding; only bids from qualified buyers; an executed agreement with no contingencies; and non-refundable earnest money.

The home owner’s goal was to get what he paid for the home the year before. He had not made any improvements to the home; had a tenant occupying it who was in the process of moving out, making it difficult to photograph and show; and had a smaller than standard sized Chicago lot, which meant developers would not be likely buyers.

AUCTIONWORKS SOLUTION

The AuctionWorks team set a suggested opening bid of $1,250,000 for the online auction; immediately posted a large sign detailing the home’s features in the front yard; extensively marketed the home to local brokers; coordinated with the tenant to photograph the home; and scheduled an open house during one of the few days in which the home would still be furnished and not yet in disarray due to the tenant’s impending move out.

RESULTS

The open house resulted in a pre auction bidding war with the high bid coming from a cash buyer. The AuctionWorks team achieved a sale price of $1,467,750—which far exceeded the seller’s unpublished reserve price of $1,350,000.

SELLER TESTIMONIAL

"At the time I decided to list my property with AuctionWorks, I was frustrated by trying to sell my primary home through a traditional sales method and realtor. We kept going under contract on that home, but not closing because the buyers making offers did not have adequate funds. I had a second home to sell during the same time period and decided to try the auction method of sale for that home. My goal was to reduce the hassle and negotiations involved; only deal with qualified buyers; reduce the commissions I would have to pay at closing; and sell the home quickly for at least the same amount I had paid for it the year before. The AuctionWorks platform and team far exceeded my expectations. By igniting a pre-auction bidding war, they achieved a quick, cash sale that netted me over $100,000 more than my unpublished reserve price (the amount I had paid for the property the prior year)."

-Alfred Stepan, Non-Distressed Luxury Home Seller & SVN AuctionWorks Principal

ESTATE SALE



3871 Sunset Lane
Northbrook, IL
Privately Owned Real Estate

Sale Price: $525,000

BUSINESS CHALLENGE

This single family home located in a North Shore of Chicago suburb and set on a large (nearly one acre) lot surrounded by much larger, newer construction homes, was built by its only owner in 1972. After the owner passed away, his three adult children (two of whom lived in other states) wanted to sell the home quickly and minimize the hassle for the one sibling who lived nearby. They also wanted to determine the highest price the market would bear for an older home they believed most buyers would deem in need of extensive renovation.

AUCTIONWORKS SOLUTION

The AuctionWorks team set a suggested opening bid of $295,000 for the online auction (a little less than the estimated land value of the home’s lot) and extensively marketed the home to local brokers and developers.

RESULTS

In a pre-auction bidding war that included 9 local buyers, many of whom were developers, the AuctionWorks team sold the home to a cash buyer who intended to renovate the home and flip it. Through the competitive bidding process, the AuctionWorks team successfully sold the home in less than 30 days, with minimal hassle to the sibling that lived nearby, and achieved a sale price of $525,000 ($25,000 over the unpublished reserve price).

LAKE FRONT SINGLE FAMILY HOME



12300 Nixon Lane
Apple River, IL
Privately Owned Real Estate

Sale Price: $610,000

BUSINESS CHALLENGE

This lake front, single family home located in a private association community on Apple Canyon Lake was arguably the nicest home on the lake, in a community where most homes sell for under $400,000. The owner previously had the property listed with a local broker for over a year, during which time the home had very few showings and no offers. Ready to buy a vacation home on a larger lake, but preferring to sell this home first, the owner approached AuctionWorks. While an AuctionWorks team member had successfully sold several commercial properties at auction for this owner in the past (including two golf courses and an asphalt plant), this was his first residential auction.

AUCTIONWORKS SOLUTION

The AuctionWorks team set a suggested opening bid of $450,000 for the online auction and extensively marketed the home to local brokers and brokers in surrounding areas. Since the home was located in an area that attracted vacation homeowners from three states, the AuctionWorks team implemented an electronic marketing campaign to target market the home to potential buyers who lived within a certain radius and people who visited the community’s website. Since the lake is visited most during July 4th weekend, the AuctionWorks team set the online auction date for mid July and advertised a July 3rd open house. In advance, the AuctionWorks team placed auction signage in both the home’s front yard and in the backyard where it would attract the attention of boating enthusiasts.

RESULTS

The July 3rd open house attracted 20 families who toured the home and resulted in a pre-auction bidding war that included three buyers. The AuctionWorks team sold the home to a cash buyer who was able to close in less than two weeks. Through the competitive, pre-auction bidding process, the AuctionWorks team achieved a sale price of $610,000 (well over the seller’s unpublished reserve price of $500,000).

SELLER TESTIMONIAL

"Diana Peterson and her company AuctionWorks have been one of my favorite business partners over the past 5 years. I oversee 9 companies and have the opportunity to do business with hundreds of partner businesses and I can say with confidence Diana and AuctionWorks is one of the top 3. Our first property that Diana sold for us was one of the toughest I could ever imagine, an old Asphalt Plant and a small industrial park in a bad location. She did a phenomenal job from start to finish and she then was given a losing golf course in a small farm town and another old Asphalt Plant in a small industrial park. She somehow sold those two properties at good prices and in each case had a couple buyers wanting the properties prior to an auction. I recently challenged Diana with our family lake home that was devalued because of runaway association fees and taxes. We had the home for sale on two different occasions with little to no interest over 4-6 month intervals at a heavily discounted price from the value 5-6 years prior. After hiring Diana we never looked back, we had a few interested buyers with two offers prior to going to auction and accepted a very good offer that closed within a couple weeks. I have recommended Diana to good friends of mine who ended up having similar success. If anyone wants to move a property fast without the normal hassles of the conventional real estate sales process, I can't imagine a better person or company than Diana Peterson and AuctionWorks."

-Gary Rabine CEO, The Rabine Group of companies