Broker & Auctioneer Enhance Foreclosure Auction
WILLIAMSBURG, VA, April 9, 2012 – The former Lexington, George Washington Inn & Conference Center will be sold in a public foreclosure auction scheduled for Tuesday, May 1st in front of the York County Courthouse in Yorktown. The hotel was closed last year not long after undergoing approximately $4 million in renovations. The lender has hired a local broker and a national auctioneer to help attract hoteliers and investors to bid at the foreclosure auction. Based upon, among other things, the advice of Cushman & Wakefield / Thalhimer and Sperry Van Ness / Interstate Auction, the advertising for the hotel foreclosure has been expanded well beyond the scope of advertising normally done to meet legal requirements for foreclosure.
At a majority of foreclosure auctions, there are typically a limited number of bidders, and the property generally sells to the lender, or to a local speculator who later resells the property for a profit. “When you look at how foreclosures are normally conducted, it’s no wonder that there are few bidders,” says David Butchello, a hospitality specialist with Cushman &Wakefield – Thalhimer. Only minimal advertising is required in order to satisfy the legal requirement for a foreclosure. Advertising is typically limited to a few legal notices in a local paper. “The market for a full-service hotel is national in scope. Hoteliers in Los Angeles, Miami or Boston just don’t read the legal notices in Williamsburg, VA on the off-chance that a hotel might be foreclosed. Even if hoteliers knew about the foreclosure, with limited legal notices, as allowed in some foreclosures, it would prove extremely difficult to fully evaluate a property make arrangements to pay in cash at the courthouse. When you consider the difficulty for the buyer, it’s easy to understand why lenders end up being the high bidder a majority of the time.”
On advice from John L Johnson, CCIM with Sperry Van Ness – Interstate Auction, a professional auction marketing campaign is being conducted in addition to the required legal notices. We’ve expanded the advertising to include multiple media and a national market. For informational purposes, we’re providing extensive diligence information for free, that can be immediately downloaded. Additionally, Mr. Butchello is opening the property up to investors for pre-auction inspections.
Mr. Butchello and Mr. Johnson are targeting national hotel owners and operators as well as other compatible end-users for the auction. “Unlike typical foreclosure auctions, we have auction signs on the property, we’re mass-mailing post cards to hoteliers, the property is featured on multiple real estate and auction websites, advertisements are running in regional and national papers and in trade journals, and we have extensive diligence information available on the internet for immediate download. We’ve made the property available for inspection by simply contacting Mr. Butchello at Thalhimer for an appointment. To accommodate bidders, an initial deposit of only $100,000 is required. We’ve tried to extend the opportunity to everyone who might be a bidder, and make the process as easy as possible,” say Johnson with Interstate.
Prior to the foreclosure, the hotel was on the market with Thalhimer for $4.5 million, only $500,000 more than the purported $4 million spent by the previous owner on renovations alone. The property has generated significant interest from both hoteliers and senior living converters. The hotel is not currently subject to a franchise or management agreement, so a buyer would be free to reopen the hotel with whatever hotel franchise they want. Also, the hotel also has excellent potential for conversion to a large-scale, senior living center.
For more information and the terms governing the sale, please visit www.svniac.com or www.interstateauction.com .
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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 36 states. Sperry Van Ness provides advisory, brokerage, consultation, asset management, property management, 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. For more information, please visit www.svniac.com or www.interstateauction.com .