The world's largest real estate auction is Aug. 13. It's another significant milestone in the growing use of auctions to market real estate.
This auction will include about a half-billion dollars in commercial properties. The auction, to be held in Los Angeles, is an international event, with buyers from Europe, Asia, Latin America and the Middle East, as well as the United States.
Each buyer must submit a $100,000 cashier's check to qualify for the bidding. Reserve property prices range from $1 million to $22 million. If top bids are less than the reserve amount, the property owner may accept the offered amount.
The properties include office and industrial buildings, retail centers, multifamily residential buildings and hotels. Sellers are banks, insurance companies, pension funds and individuals, said Bill McMorrow, chairman of Kennedy-Wilson Inc., which is producing the auction along with Jones Lang Wootton.
Growth in real estate auction sales is fueled by an "imperfect market," said a spokesman for the auction-producing firms. "With so many properties now in the hands of lending institutions or government bodies, it is difficult for foreign buyers to gain access to these investments."
A 100-page auction catalog is available by calling Kennedy-Wilson at (800) 522-6664.