Cushman Realty launches real estate auction unit; brokerage firm teams up with Sheldon Good & Co.Cushman Realty Corp. is expanding the services it offers clients by starting up a real estate auction division. Or as Cushman Vice President Steve Marcussen referred to it -- an "accelerated marketing program." "The word auction has such an ugly connotation con·no·ta·tion n. 1. The act or process of connoting. 2. a. An idea or meaning suggested by or associated with a word or thing: ," he said. Ugly or not, auctioning is an area that many real estate brokerage firms have attempted to move into with varying degrees of success. Grubb & Ellis Co. has a joint venture with Foster City, Calif.-based Ross Dove Co. CB Commercial Real Estate Group Inc. started a joint venture with Santa Monica-based Kennedy Wilson Inc., but that relationship has since been dissolved. Likewise, Cushman has teamed up with an auction company, Chicago-based Sheldon Good & Co., in an exclusive relationship to auction California properties. Cushman brokers Marcussen and Jerry Hess are heading up the Cushman foray into Verb 1. foray into - enter someone else's territory and take spoils; "The pirates raided the coastal villages regularly" raid encroach upon, intrude on, obtrude upon, invade - to intrude upon, infringe, encroach on, violate; "This new colleague invades my the business of auctioning. In a prepared statement, Cushman President and Chief Executive Officer John C. Cushman III John C. Cushman, III ia an American real estate developer. He is chairman of Cushman & Wakefield, a global real estate services firm. Cushman joined Cushman & Wakefield Inc. in New York, NY in 1963 and then opened an office in Los Angeles in 1967. said his firm's alliance with Sheldon Good "will provide the firm's clients with a range of flexible and innovative non-traditional marketing strategies to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose real estate assets." The joint venture was announced last month and the partners are now signing up sellers for their first California auction. Marcussen said the auctions will be geographically specific, and at first, the Cushman-Sheldon Good team will be peddling a batch of Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, commercial properties. Auctioning became a common method used by financial institutions and government agencies charged with disposing of the assets of failed financial institutions. In general, the business volume of auction companies seems to be tapering off tapering off Sports medicine A format for competition training, where a world-class athlete ↓ frequency and intensity of training in the wks before an Olympic or other sport event of importance, with the hope that perfomance in the key event will be medal-worthy since most banks and thrifts and the Resolution Trust Corp. have disposed of th majority of their troubled assets. Jordan Richmond, a broker with Grubb & Ellis, said establishing a profitable position within the auction business at this point may be difficult for a newcomer. "The biggest amount of auction business was from the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). (Federal Deposit Insurance Corp.) auctions, and a great many of those properties are not available now," he said. "For another company to get into it now will be difficult because there is not that much business left." Nonetheless, Grubb & Ellis' auction calendar is not slowing down much, said Richmond. For this year, one auction per month has been scheduled by the Grubb Ellis-Ross Dove partnership. He added that the partnership has been profitable. "I just don't see the business as blooming in the future," said Richmond. Obviously, Cushman Realty and Sheldon Good have a different opinion. Both Marcussen and Hess insisted opportunities still exist in California to do a clipping (1) Cutting off the outer edges or boundaries of a word, signal or image. In rendering an image, clipping removes any objects or portions thereof that are not visible on screen. See scissoring. See also WCA. auction business. The real estate market, said Marcussen, is still bumping along the bottom and more trouble may be in the future. "If interest rates spike up again, there is going to be a whole other group of borrowers tha will be underwater," said Marcussen. "For them, the auction process makes sense." Cushman and Sheldon Good are trying to pitch themselves as the only partnership exclusively involved in real estate. They hope California clients will be impressed with that, as well as the fact that Sheldon Good had a good year auctioning last year. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. both Marcussen and Hess, Sheldon Good sold more than $700 million worth of real estate through auctions last year. Fully 85 percent of the properties Sheldon Good took to auction last year were sold, and escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. closed on 100 percent of those properties sold. Hess stated that Sheldon Good's success results from thorough preparation befor the auction. "They do more preparation with respect to due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. so the buyers know everything going in," he said. "They provide both buyers and seller with everything they need to know before the auction. They are also more selective about what they will take to auction." A tentative date of Nov. 3, 1994 has been scheduled for the first Cushman Realty-Sheldon Good auction. The event is slated to be held somewhere in the Lo Angeles area, but the exact location had not been determined by press time. |
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