FDIC to offer 200 properties at auction

Real Estate Weekly, Nov 17, 1993

On December 14 and 15, investors from across the country will plunk down $50,000 to become bidders at one of the largest government-sponsored auctions in history. They will be bidding on 200 commercial real estate properties in 26 states being offered by the Federal Deposit Insurance Corporation (FDIC). The properties range in value from $500,000 to $18 million, with an aggregate total of one half billion dollars.

The auction takes place on December 14-15 in Boston and is being simultaneously broadcast by satellite to other bidders at sites in Los Angeles, Dallas, and Atlanta. The FDIC has chosen Larry Latham Auctioneers, Inc. of Scottsdale, Arizona and Cushman & Wakefield, Inc. of New York to conduct the auction.

In 1992, the FDIC conducted a similar auction which was highly successful. Eighty-one-percent of the 270 properties offered sold for a total of $412 million. "The FDIC uses auctions to return properties as rapidly as possible to the private sector, while maximizing their net recovery, " says Alan McCall, assistant director of the FDIC's Division of Depositor and Asset Services.

According to Leonard F. Helbig, executive vice president of Cushman & Wakefield, Inc., this auction contains properties ranging in value from $500,000 to $18 million. "The majority are in the low to to mid-range category and are attracting local, investors," says Helbig. "These investors see an enormous opportunity to own and manage income-producing property in their own backyard.

The 200 properties are located in 26 states with concentrations in Connecticut, Massachusetts New York, California, and Texas. There are a wide variety of properties, including office buildings, shopping centers, hotels and marinas, recreational properties, apartment/residential developments, industrial complexes, special purpose, mixed use and office/retail real estate.

"There are many investors entering the commercial real estate market for the first time in the 1990s," says Gary Bowen, associate director if the FDIC's Division of Depositor and Asset Services. "For them and others, the FDIC is offering non-recourse, fixed, market rate seller financing. Also we have been conducting free "How to Buy at Auction" seminars across the country, and we are providing a National Auction Information Center Hotline (800-898-1198).

According to Larry Latham, president, Larry Latham Auctioneers, well-informed buyers get the best results on auction day. "In addition to auction seminars," says Latham," buyers can get detailed property information by purchasing Property Information Packages available in hard copy print or on computer disks,, in a free four-color FDIC' 93 Brochure of Properties, or by contacting the property-specific Cushman & Wakefield brokers.

Property Information Packages are available now, containing detailed property information, terms and conditions of sale, financing, and registration information for the auction. Contact Larry Latham/Cushman & Wakefield National Auction information Center Hotline at 900-898-1198 or FAX 617-279-1833.