Tanyard Springs Retail Land Auction Case Study

Tanyard Springs Retail Land Auction
Preston Hwy & Tanyard Springs Blvd.
Louisville, Kentucky MSA

Represented: Seller
Asset type: Five-parcel, 15.23 acres
Sale Price: $1,272,755

Challenge:

In early 2005, a development partnership holding 15.23 acres of retail land south of metro Louisville,Kentucky had come to a crossroads.
The partnership had expired and was faced with a 90-daydissolution clause. Though they had successfully sold land near the Tanyard Springs sites before,the partners were now under a deadline to sell
the balance of their portfolio quickly. They set theirsights on an
auction, contacted the two recognized commercial auctioneers in the area and askedfor presentations and won the auction opportunity. According to the partnership, they felt Sperry Van Ness had a greater ability to reach a large national audience.

Sperry Van Ness:

The Tanyard Springs land pads would be a difficult sale, with the primary anchor being a dark Winn-Dixie grocery store that had development restrictions still in place. Sperry Van Ness extended their marketing efforts deep into the national and local investor and broker pools to promote the auction. The goal: To create a high demand situation that would motivate local buyers and also attract out-of-town investors to the bidding table. On the seller’s side, it was agreed that a $1 million total sale price for all five pads would be a good outcome.

Results:

Sperry Van Ness scheduled the Tanyard Springs auction to sell the
five retail pads. The morning of the auction, the client received an offer of $955,000 for all 15+ acres but declined. By the end of auction day, all five pads had sold to four buyers-one from out-of-area and three from the local market. The auction generated a total of $1,272,755, or $1.92 per square foot… more than 125 percent above the client’s expectation. All offers went to contract within 54 days and closed within 84 days to meet the 90-day dissolution deadline.