Going once. Going twice. SOLD…for $205 million?!
No, that number is not a typo. It’s online auction property sale of Beltway Business Park in Las Vegas, which set the record for the largest single-asset online real estate transaction in history. And it’s a big deal for the digital transactions provider Crexi — literally and figuratively.
Crexi is a real estate tech company whose data platform enables commercial real estate (CRE) professionals to streamline the process of listing, marketing and growing their businesses. Why is this particular auction so important? Because historically speaking, the CRE industry often perceived auctions as a last resort, said Crexi’s Senior Managing Director of Transactions Bob Drury.
Crexi is bucking that trend.
“Commercial real estate has been executed the same way for a long time, so when something like Crexi Auction comes along, it disrupts the industry for the better,” Drury said. “A high-revenue, high-profile deal like Beltway Business Park makes our auction platform stand out on a level not seen before.”
Crexi has a dedicated team focused exclusively on auctions. They are there for the company’s broker partners, sellers and buyers — from listing, to marketing, to the auction transaction, and through closing.
Crexi’s record-breaking sale is proof that along with the company’s SaaS model, online auctions are another huge revenue stream for Crexi to eventually become a multi-billion dollar company.
How will Crexi get there? Built In LA caught up with Drury to find out.
Why is this recent record-setting auction so important for Crexi?
It makes Crexi Auction a game changer for everyone involved. Crexi Auction provides an all-cash, non-contingent sale, helps navigate the challenges of unique properties, and eliminates seller deal fatigue with a fast close — typically in only 30 days.
Auctions also benefit real estate owned (REO), foreclosure and special servicer deals with minimal hassle because our platform allows them to keep track of everything digitally, transparently, and in the same place. That’s another layer of Crexi Auction’s benefits: it’s a turnkey solution for marketing to the most buyers and illustrates marked demand backed by data.
Ultimately, the Class A Beltway transaction proves Crexi Auction can successfully market and auction quality, institutional-grade assets from list to close in less than 90 days.
What are the ripple effects of a history-making auction like this?
The Beltway auction will definitely lead to more auction transactions. Oftentimes, non-traditional properties can be harder to market because they don’t necessarily fit into one listing category. These listings have an ideal buyer. Using Crexi’s online auction platform gives the seller and broker peace of mind knowing that they are getting maximum exposure and driving potential buyers to a date-certain sale with a very high probability of closing in a short time frame. The Beltway transaction perfectly demonstrates our ability, going from listing, to marketing, to close in 74 total days.
Tell me more about the overall success of the Crexi Auction platform to date.
We started the Crexi Auction platform in 2019. And as much as the pandemic has negatively impacted almost all facets of everyday life, it’s actually contributed positively to online property auctions. So far, there has been over $1.3 billion+ in assets on Crexi Auction. We generate 17 times more leads than a transitional listing on the market and to date have accepted nearly $25 billion in bids digitally. The size, property type, and market are not barriers for our dedicated team.
What’s next for Crexi?
We will see more high-quality properties brought to the Crexi Auction platform. We will see more buyers, sellers and brokers embrace this way of buying and selling quality assets. Ultimately, there will be more auction transactions and more bids, with more satisfied brokers, buyers and sellers embracing the Auction format.
New teammates who join Crexi can expect to work on high-quality and diverse asset classes. There’s huge opportunities for growth at the company, both on an individual and company level. We’ve only been doing this for two-and-a-half years and have already achieved fantastic success. We expect our business to increase significantly in the next few years and we’re excited to add more ambitious, motivated and hardworking folks to our team.