It’s back to the future in commercial real estate!
Howard Michaels, chairman of The Carlton Group, is bringing the live auction back to the industry.
Mr. Michaels will now hold what are known as “oral outcry” auctions for commercial real estate assets–bricks-and-mortar properties and loans–through a new entity called Carlton Auctions LLC.
This is not Mr. Michaels first foray into the live auction format. Back in the 1990s, in the days of the RTC, spawned by the savings and loan crisis, Mr. Michaels auctioned off thousands of real estate assets using live auctions.
Experienced auctioneers Oren Klein and Josh Olshin will lead the auctions.
“Oral outcry auctions sales provide sellers with the best method for obtaining true market value,” Mr. Klein said in a statement. “The day’s of accessing cash-rich institutional buyers are over. The best pricing will absolutely come from local, well-capitalized end users who are looking to either occupy or personally own and control a particular asset in a particular sub market”.
For his part, Mr. Olshin said in a statement: “Our goal is always to provide our clients with the highest level of service and maximum pricing. Sealed bid sales, particularly on REO, aren’t always able to generate that competitive and emotional spirit (that oral outcry auctions do) which often times leads to an above market price, which benefits the seller.”