SVN Deal Stories: Bankruptcy Auction of a Shopping Center
Avalon Plaza, a neighborhood retail shopping center in Salisbury, MD.
This retail property was in a permitted sales process under 363 Federal Bankruptcy and approved for a structured bankruptcy auction to be conducted with all liens attaching to the proceeds of sale.The Brokers:
Brent C. Miller, CCIM, CPM, SVN/Miller Commercial Real Estate
Louis Fisher, SVN Auction Services
David E. Gilmore, CCIM, CAI, AARE, SVN Auction Services
Kayvan Mehrbakhsh, CCIM, MBA, SVN/SVNMA
Getting the Deal Done the SVN Way:
Sperry Van Ness Auction Team Advisors Louis B. Fisher, III, Auction Council Chair and David Gilmore, Managing Director received appointment as marketing agent/auctioneer for the trustee and the subject bankruptcy estate. Brent Miller, Managing Director for Sperry Van Ness/Miller Commercial Real Estate in Salisbury served as the court appointed property manager and local headquarter broker for the initiative and engagement. A live auction was held in Chambers at the Bankruptcy Court with a confirmation hearing immediately before the Judge at the conclusion of the bidding for the property. The auction attracted interest from major equity funds and national retail operators/owners in 19 US States with 100 plus prospective purchasers entering the buyer momentum process and multiple groups inspecting the property. The brokerage community participated with 14 different broker registrations representing potential bidders. The live auction was conducted with four qualified bidders present in Court Chambers and five qualified bidders attending via Sperry Van Ness’s online internet bidding platform. The auction produced competitive bidding with a final $5,925,000 cash bid with Sperry Van Ness Advisor Kayvan Mehrbakhsh representing the buyer.
The Lessons Learned:
• Rely on the top talent in area of expertise
• Use an internet/online platform to open the market wider
• It is key to understand both the market and the buyer’s needs
“Brent, you and your team exhibited a high level of thoroughness with the due diligence materials and a great degree of professionalism with your duties as property manager and headquarter listing agent for the auction. Many of the interested bidders commented on your team’s responsiveness with answers to their questions
regarding the property, market conditions and demographics, all important to buyers of operating retail centers.”
Merill Cohen, Trustee, U.S. Banruptcy Court
*All Sperry Van Ness® offices are independently owned and operated.