ESG, Sheldon Good join for institutional sales

Real Estate Weekly, May 12, 1993

Edward S. Gordon Co., Inc., and Chicago-based Sheldon Good & Company, a real estate auction firm, have formed a joint venture to offer, via the auction method of accelerated sales, office and industrial properties, apartment complexes, warehouse/distribution centers and lease-holds in the New York metropolitan area on behalf of institutional sellers.

Principals of both firms reported that the first sale, involving properties valued at approximately $40 million, would take place in late June on behalf of Prudential Insurance Company and other institutional-grade sellers holding portfolios of various office and investment properties in the New York region. These sellers are utilizing the auction to deliver a clear message to the market: they are serious sellers with a date certain for disposition. They are ready to conclude a transaction. The joint venture has the ability to deliver knowledgeable bidders ready to sign non-contingent contracts at the auction.

By choosing the accelerated auction method of sales, the seller can avoid the carrying costs associated with long-term asset management and maintenance, including taxes and marketing expenses. Properties can be marketed and sold within a 90-120 day period for their maximum value, through the competitive bidding process.