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An affiliate of Woodside Capital Partners of Fort Worth, Texas, has acquired the eight-building Counsel Square office complex in New Port Richey for $9.1 million, through a somewhat unorthodox buying method.
That’s because Woodside’s purchase of the 11,757-square-foot complex from an entity controlled by LNR Partners of Miami Beach came via the Ten-X online auction site.
In previous economic cycles, auctions of commercial properties have largely been employed for distressed or hard-to-sell assets.
But John Bell, a managing director of commercial brokerage Transwestern Commercial Services who negotiated the deal on behalf of LNR, the world’s largest special servicer, says online auctions offer efficiency for both buyers and sellers.
“It’s a more efficient delivery system to market,” Bell says. “The bidding is transparent, and it’s more efficient for both sides. For sellers, the deal goes hard right away with a non-negotiable contract. For buyers, if you win the auction, you close in 30 days, so that’s efficient for them, too.”
Bell believes, too, that online auctions will become more prevalent as commercial real estate ownership consolidates among institutions and similar entities.
“A lot of real estate today has an online component,” he says. “And the platform of the auction is pretty prevalent already, especially among owners who have a large number of assets. It’s becoming increasingly popular, we’re finding.”
Developed between 1985 and 2002, Counsel Square today is 71% occupied by the Pasco County Sheriff’s Office; Pace Center for Girls, law firm Psetas, Moore & Tetlow.
The 7545-7627 Little Road project, which is in close proximity to the Pasco County Government Center, was valuable because it offers the potential for additional value going forward, Bell says.
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