With the Florida commercial real estate market making a slow recovery, some investors are taking advantage of the upswing to sell their investments. Odyssey Entities LLC has decided to take advantage of the commercial real estate market and auction Lakeland's Palm Center in order to return money to investors.
The company purchased the 132,000 square foot center in 2009 for $4 million and the center has done really well during the recent tough economic times.
Odyssey Entities is also auctioning off 24 other properties because they feel that the time is right to pay back their investors. The CEO of the company said that with the banks being reluctant to extend or make new loans, it's a good time for them to auction off some of these properties, but he did want to make it clear that no one is going bankrupt. The auctioning of the properties was based on a business decision.
Tenants of these buildings were informed of the impending sale and they should expect that their lease agreements will be honored by the new owners.
According to the Urban Land Institute's Real Estate Business Barometer, Florida's commercial property prices are still down by more than 30 percent from their pre-recession highs.
Odyssey Entities chose to go with the auction method because it would expedite the sale process -- a sale could be completed in as little as 75 days whereas listing the properties could take a lot longer.
Those interested in making a bid on any of the properties will need to have a 10 percent down payment the day of the auction and will need to be able to complete the transaction within 45 days.
Source: TheLedger.com, "Palm Shopping Center in Lakeland to Be Auctioned," Elvina Nawaguna, March 28, 2012
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