New AuctionPoint Online Platform Proves to Be Successful Solution to Distressed Commercial Property Market

MARINA DEL REY, Calif.-(Business Wire)-September 21, 2009 - AuctionPoint, Inc. today announced that results from the first three auctions using its first-of-its-kind online auction platform prove that it is an effective solution to the next wave of distressed commercial properties. During a four-hour plus absolute auction for each property, more than 30 qualified bidders logged onto the Web sites for the different properties and actively outbid each other 177 times. On average, the winning bids were 49 percent higher than the initial bids. The properties had been on the market for more than 24 months, and the time between start of auction marketing and auction date was only five weeks.

“As developers of this new solution, we were just as eager as the brokers involved to see the final results,” said Joe Tang, co-founder and CEO of AuctionPoint. “Going into the first auctions, we were confident that our technology could bring strong, qualified buyers to the table. These results show that AuctionPoint brings liquidity back to the market and sets true market value for commercial properties in any area.”

“Because the AuctionPoint platform was so easy for us to manage, we could focus on what we do best – identifying qualified buyers and marketing the property,” said Walter Frome, Senior Vice President, Voit Commercial Brokerage. “Prior to the auction, we were able to review the list of all registered users and reach out to them to assure that they participated. During the auction, it was exciting to watch buyers, who previously sat on the sidelines, jump back in the market.”

Specific results of the properties include:

Eleven bidders made 30 bids for the 3,774 square foot, turn-key, flex-industrial condominium located at 1382 Valencia Avenue, Unit J, in Tustin, Calif. The winning bid was $560,000, which was 49 percent higher than the starting bid. The property was auctioned by Chris Bates, David Bolt, Andrew Morrow and Matt Christensen of CB Richard Ellis.
Ten bidders made 60 offers for the 7,405 square foot, turn-key, flex-industrial condominium located at 16782 Von Karman Avenue, Unit 24, in Irvine, Calif. The winning bid was $1,060,000, which was 48 percent higher than the starting bid. The property was auctioned by Walter Frome and Bill Livesay of Voit Commercial Brokerage.
Ten bidders made 87 bids for the 9,723 square foot, single-tenant, leased investment located at 16782 Von Karman Avenue, Unit 25, in Irvine, Calif. The winning bid was $1,730,000 (8.10% Cap Rate), which was 48 percent higher than the starting bid. The property was auctioned by Gary Stache, Pat Scruggs, John Read and Anthony DeLorenzo of CB Richard Ellis.

“I found the entire online auction process simple and user-friendly,” said Roger Thompson, vice president of Wallender Commercial and the broker who represented the winning bidder for the 16782 Von Karman Avenue, Unit 25 property. “All of the property information and due diligence materials were well-organized online, and the bidding process was very straightforward.”

“We believe that brokers everywhere now will begin integrating AuctionPoint into their marketing programs,” said Keith Yang, co-founder and president of AuctionPoint. “We know the market is moving in this direction and believe that we’ve created a quick and effective way to conduct a sale of distressed or any commercial property.”

Before each auction, bidders are prequalified by providing a Winner’s Deposit. This process enables brokers to identify which registrants are serious potential buyers and allows them to target their marketing efforts prior to auction.

The AuctionPoint solution was developed with brokers in mind, by enabling them to customize and manage the entire auction of a featured property, from marketing to live bidding to sale, in an efficient, seamless manner. Unlike traditional auctions which exclude or limit participation by brokers, AuctionPoint empowers brokers – the market specialists – to sell properties faster, more efficiently and at market value, all while keeping their full commission. Each broker can create and customize a Web site for an individual auction for a one-time set up fee of $395. AuctionPoint collects a one percent fee of the final price at the close of escrow, the same time as brokers receive their commissions.

”Unlike traditional auctions, in which the one-dimensional process is often run by companies unfamiliar with the complexities of the commercial real estate markets and the strong role of brokers in the sales process, AuctionPoint’s platform allows for an informed marketing effort prior to the sale and a sophisticated online method for managing the actual auction,” added Yang.

About AuctionPoint

AuctionPoint, a sophisticated new online auction platform, will change the way the commercial real estate industry does business. At a time when the market is at a standstill, auctions motivate buyers to get off the sidelines by offering low minimum bids, absolute deadlines and transparent bidding. Created by technology entrepreneur Joe Tang and real estate developer Keith Yang, AuctionPoint provides commercial real estate brokers with a platform to run the entire auction process online. Using AuctionPoint, brokers can now create customized online auction sites, and configure the auction parameters to address the needs of the specific property and seller. Brokers market listings as they have traditionally, but now drive potential buyers to their auction website, where buyers have access to all property details and due diligence materials, creating a much more efficient and streamlined sales process. For more information, visit www.AuctionPoint.com.

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