07 Nov Trustee Sale $400K Over List!
Chapter 7 Bankruptcy Trustee Assignment
MW Team Brokerage was recommended by Darren Hubert with Urban Hillsides, the single family trustee sale specialist for Danning, Gill, Diamond & Kollitz, LLP (D|G|D|K). The assignment was twofold: 1. To provide a broker opining of value a shopping center in Reseda (San Fernando Valley, Los Angeles); 2. List the property for sale should the Chapter 7 bankruptcy affecting the property require it.
The Stalking Horse Offer
When it was determined the property should be listed for sale MW Team Brokerage launched an all encompassing marketing campaign. The property was listed for sale at $1,700,000. Thirteen offers were obtained. The offers mostly ranged between $1,300,000 and $1,450,000 due to the fact that offerors knew offers would be subject to overbid in a courtroom auction. Nobody wanted to start too high. Two offers did however come in at list price. One of those was chosen as the “stalking horse offer.”
The Sale: $400,000 Over List
Wolf Baschung, CCIM, CPM took the stand and testified before the judge as to his listing agent bonifides. The room was packed with investors ready to bid. All 13 offerors and a number of new participants quietly sized one another up. After Chapter 7 bankruptcy preliminaries, veteran trustee lawer, David Gill, started the auction. The bidding started and kept going, with one groups of two or three bidders bidding against each other. Each group ceded to the next as the price escalated. The last two bidders kept taking it up, all the way to $2,200,000, a full $400,000 over list! Success!