News
Multi Million Dollar Hotel and Apartments Auction
Published: Friday, March 30, 2007
SPERRY VAN NESS ACCELERATED MARKETING COMPLETES SALE OF MORE THAN $5.22 MILLION IN LOUISIANA HOTEL AND MULTIFAMILY PROPERTY VIA AUCTION
KENNER, LA, March 29, 2007 – Sperry Van Ness/Gilmore Auction, one of the nation’s premier accelerated marketing firms, has just closed escrow on three properties that were sold via auction. David Gilmore and Francis Braud, national auctioneers for Sperry Van Ness Accelerated Marketing Co. in Kenner, LA sold the three properties via a dual bid auction for just over $5.22 million for its client, a prominent New Orleans hotelier who owned the properties under separate legal entities.
According to Gilmore, a dual-bid auction is where initial bids must are submitted prior to the actual auction. These initial bids are evaluated and selected bidders are invited to the live auction where the highest bidder is awarded the property.
“The accelerated marketing program enabled our client to quickly dispose of the properties and raise cash as the area recovers from the devastation of Hurricane Katrina. The seller was very pleased as all three sales far exceeded the seller’s expectations and minimum prices.”
Following is information on each of the three properties:
• Rockwood Inn & Suites, a 113-room hotel located at 42309 South Morrison (Highway 51) in Hammond, LA, was sold to VIMAL, LLC from Gretna, LA for $1.21 million. Built in 1974 and situated on 4.38 acres, the property includes a pool restaurant and lounge and is near Interstate 12. The starting auction price was $500,000.
• Pine Grove, a 48-unit apartment community located at 3990-4000 Florida St. in Mandeville, LA, was sold to Mr. Hud Braud from Monroe, Louisiana for $2.53 million. Built in 1976 and situated on 2.35 acres of land, the property was 85 percent leased at close of escrow and is projected to be a condo conversion. Four of the units are needing repair as a result from wind damage from Hurricane Katrina. The property is minutes from Lake Pontchartrain and the Causeway Bridge linking St. Tammany Parish to New Orleans. The starting auction price was $2 million.
• New Orleans Midtown, a historic 102-room hotel located at 3900 Tulane Ave. in New Orleans, was sold to a private investor from Dunedin, FL for $1,485,000. Built in the 1930s, the hotel includes a pool and meeting rooms and is just minutes from the French Quarter. The property had five feet of water in it after Hurricane Katrina and is currently housing recovery workers. The starting auction price was $1 million.
Gilmore added that auctions are a beneficial way to sell a property. Auction sales can often be closed instantly or within an acceptable time frame, depending on the sellers' requirements and flexibility. They also transform surplus holdings into cash or earnings assets. An auction is a catalyst for motivating hesitant buyers into action. Auctions expand market reach by employing programs that expose properties to a regional, national and international audience.
Founded in 1987, Sperry Van Ness is one of the largest commercial real estate investment brokerage firms in the United States with 800 advisors in 150 cities. Sperry Van Ness provides advisory, brokerage, consultation, asset management, property management, and leasing, financial, accelerated marketing and auction services. To provide the highest value to its clients, Sperry Van Ness is the only national firm that implements a broker marketing plan in addition to its investor marketing plan for all listings. Sperry Van Ness is the only national firm that proactively shares its fee 50/50 with cooperating brokers. Guided by this principal of cooperation, Sperry Van Ness, based in Irvine, Calif., has advised clients on billions of dollars in office, multifamily, retail, industrial, hospitality and land transactions. For more information, please visit www.svn.com.