The problem with any Commercial Real Estate Marketplace where there have been relatively few sales over the last 12 to 18 months is that there is no new historical data on how to price real assets. Appraisers cannot find data that is current. Sellers are not sure as to what to ask for a property. Buyers are unsure as to what to pay, and therefore stay on the sidelines doing nothing.
Cleveland, OH (PRWEB) October 22, 2009
Commercial Real Estate Sellers and Brokers in just about every State of the U.S. are seeking methods of attracting buyers to their Apartment Buildings, Office Buildings, Retail Property, Industrial Land, and Hotels. Ohio is no exception as more and more sellers are turning to high profile real estate auctions to close the real or imagined gap between what buyers will pay for a property and what a seller believes they should ask for an asset. Gordon Greene, Broker & Auctioneer with Cleveland-based Chartwell Group Broker and Auctioneers, noted, "The problem with any Commercial Real Estate Marketplace where there have been relatively few sales over the last 12 to 18 months is that there is no new historical data on how to price real assets. Appraisers cannot find data that is current. Sellers are not sure as to what to ask for a property. Buyers are unsure as to what to pay, and therefore stay on the sidelines doing nothing."
Representative of the effort to break up the "Gridlock" preventing commercial real estate transactions in Ohio is the November 24, 2009 Chartwell Group Real Estate Auction at the Crowne Plaza Hotel at Cleveland Hopkins Airport. Included in this Auction are properties from throughout Northeast and Central Ohio. Published Reserve Prices for certain of these assets are set at 50% to 90% below the last asking prices or replacement value for the properties. Gordon Greene said, "While the sellers at the November 24 Auction are hoping a component of upward momentum of bidding, they each wanted to send a clear message to prospective buyers that they mean to sell the properties at the auction. The message is, 'If you miss the auction, someone else will buy at a wholesale price, as sales are going to being made.'
Properties being offered are the following:
1. Super 8 Hotel, a 93-Room Hotel on Interstate 71 at Exit 231, just south of the Cleveland Hopkins Airport with an Opening Bid of $910,000. This sale is directed by the Court-appointed Receiver under order of the Court of Common Pleas, Case CV-09-692284. 15385 Royalton Rd., Strongsville, OH
2. Former Wal-Mart Big Box Facility of 120,000 Sq. Ft. on 14-Acres on Salem Avenue, Trotwood, NW Suburban, Dayton, OH. Published Reserve Price is $3,540,000, under $30 per Sq. Ft., or about 50% under the replacement cost for the asset. Bidding will commence at $2,545,000. Wal-Mart just vacated the property built in 1992 to move to a Super Wal-Mart location nearby. 5331 Salem Ave., Trotwood, OH.
3. 78,650 Sq. Ft. Office Building in Brooklyn Heights, OH being sold for the Beneficiaries of an Estate. Published Reserve Price on this relatively modern building is $590,000 or $7.50 per Sq. Ft. This is about a 90% discount from replacement cost. 707-09 Brookpark Rd., Brooklyn Hts., OH.
4. 24,000 Sq. Ft. Office Building in Mentor, OH being sold for an out-of-state investor. Bidding will commence at $475,000, under $20 per square foot. An excellent owner-occupant opportunity for a building that is 25% rented. 8224 Mentor Ave., Mentor, OH.
5. 36-Unit Apartment Building plus 8 Street-level Retail Stores that are 50% occupied after recent renovation at 13000 Buckeye Rd., Cleveland, OH. Published Reserve price is $395,000 or about $9,500 per rentable unit, an approximate 60% discount from the last asking price.
6. 5,400 Sq. Ft. Office Condo, N. Royalton, OH with bidding starting at $225,000 and a nearby 6-Acre Royalton Business Park Parcel with a Published Reserve Price of $195,000, about $32,000 per acre. 10143 Royalton Rd., N. Royalton, OH.
For a free color brochure on the November 24th, Real Estate Auction with terms of sale, on-site inspection dates and times, and locations of all properties call Chartwell Auctions and Chartwell Group at 216-360-0009. This is the time to purchase at wholesale prices before market values begin to increase in 2010.