LFC`s Unique Online Auction Campaigns Fuel Sales of California Land (complete article from source)
Source: Reuters
October 22, 2009
NEWPORT BEACH, Calif.--(Business Wire)--
With the successful sale of two bank-owned parcels of land located in central
California, the LFC Group of Companies proved once again why they remain the
industry leaders in online real estate auction marketing. The company`s
versatility and ingenuity drove these successful auction campaigns for two
properties owned by Heritage Oaks Bank, one in the central California town of
Selma, the other in Pismo Beach. Above all, LFC achieved extraordinary velocity
of sale, marketing and closing the properties in 90 days.
The Selma auction campaign featured approximately 16 acres of vacant land with a
tentative map for 66 residential lots. After the housing boom, many towns like
Selma had an over-abundance of development land, as investors and builders
seemed content to wait on the sidelines while the market`s decline continued.
However, LFC`s online auction campaign and, in particular, the low minimum bids,
produced remarkable results.
"There were buyers out there, but no one was willing to move unless they
believed there was a good deal to be had," said LFC`s Director of Sales Shawn
Miller. "The low minimum bids served as the motivation to get people off the
fence and into the game."
While LFC often touts the universal reach of their online auctions, the company
also excels at fostering local interest. In the case of the Selma auction
campaign, LFC reached out to local farmers, investors, and affordable housing
builders through a targeted marketing campaign. In the end, the auction
attracted a high level of competitive bidding, resulting in a successful sale.
The second auction campaign of bank-owned property, +/-0.6 acres of vacant land
in Pismo Beach with entitlements for 14 condominiums, tested LFC`s ability to
think outside the box. Recognizing the need for an alternative buyer, LFC
reached out to the local redevelopment agency and found out that they were, in
fact, very interested in the property.
"We were totally blown away by the success of both of these campaigns," said
William Raver, Executive Vice President and General Counsel of Heritage Oaks
Bank. "I honestly believe that a traditional sale would not have been
successful. These were two very difficult parcels that we had on our books and
wanted to sell quickly. LFC`s online auction platform delivered a sale in the
timeframe we needed and at prices that far exceeded our expectations."
The successful sales of the properties in Pismo Beach and Selma demonstrated the
company`s versatility and in-depth knowledge of auction marketing, said LFC
Auction Manager Jeff Lunnen.
"In Selma, we were able to attract considerable interest from a number of
different buyers, and our patent-pending bid extension process, Last Call®,
ensured that the interested buyers had ample time to reconsider their bids and
compete for this deal," Lunnen said. "Our success in Pismo Beach, on the other
hand, was due in large part to our ability to explore alternative solutions."
LFC Group of Companies
For more than 30 years, the LFC Group of Companies has served numerous Fortune
500 companies, real estate developers, investors, financial institutions and
government agencies by auction-marketing thousands of commercial, industrial,
land and residential properties with an aggregate value well in excess of $5
billion. The company`s latest venture is the online auction of mortgage notes.
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