From the outside, Manhattan Towers looks like your quintessential 21st century office building. However, the expansive complex managed to break an unprecedented real estate auction online, proof positive that online real estate transactions are picking up speed heading into the next decade.
At $96.1 million, Auction.com managed to handle the single largest property sale online. The towers, which offer a combined square footage of 309,734 and will make someone a pretty nice corporate headquarters, was built in 1985 with each building containing six stories. The purchase amasses former Guinness World Record holder Mark Cuban, who purchased an elaborate $40 million Gulfstream jet. Although unconfirmed, the largest online auction transaction for any item was $168 million for a Gigayacht owned by Frank Mulder.
In fact, the anatomy of an online auction probably changed when 81 bidders began running up the price tag for the massive buildings situated at 1230 and 1240 Rosecrans Ave, located just outside of Los Angeles. After the process began, roughly 15 to 20 registered bidders were allowed to continue after showing proof of funds. Once the POFs were received, the actual number of bidders dwindled down to 13. After that, it didn’t take long for the bidding to hit double digit millions.
Custom auctions such as this have become the lifeblood of Auction.com’s existence. Many single property, portfolio, or commercial real estate property transactions flood the business, which began doing custom auctions two years ago. Rick Sharga, executive VP at Auction.com, has seen an inclement rise in hotel and retail facilities this year, signifying a wider market has emerged for distressed, seized, or otherwise outdated properties. The online auction site was hoping to net between $88 and $100 million for the property, a goal they easily hit.
Up until recently, many property-related auctions have been platforms where business owners and property portfolio holders could unload distressed assets or liquidate. Gradually, as more individuals find and flip properties, sites like Auction.com, Hubzu, and even Zillow will begin offering more multi-million dollar realty gems.
Just last week, Auction.com ran $300 million in commercial sales slips through their marketplace, which includes CW Capital’s sale to an undisclosed buyer.
The platform has recently announced they’re dabbling more into the non-distressed properties in the residential sector, which could open the doors for overseas investors looking for properties in California and Florida – two of America’s storied vacation hubs.
Mr. Sharga and CW Capital didn’t immediately respond to a request for interview.
[Photo by Andrew Burton / Getty Images News]