OAK BROOK, Ill. - Inland Real Estate Auctions, Inc. announced today that it has been retained by the village of Bensenville to auction at least nine village-owned assets as part of an effort by local officials to lead the community into the future through redevelopment. The properties range in size from under an acre to over 50 acres, with nearby privately-owned properties expected to be added, and many have been targeted for immediate redevelopment.
Through auction and advisory services, Inland Real Estate Auctions will attract regional and national developers and investors to one of Chicagoland’s most substantial municipal auction programs.

“Extraordinary economies call for extraordinary approaches,” said Bensenville Village President John Geils. “We have known that our key properties would attract national investors and motivate local developers. However, it is challenging to reach all the buyers at once, and even more challenging to meet certain timing goals. The auction will provide the solution across the board.”

Village officials aren’t just looking to sell land, but for viable plans to spark new growth. “The ideal bidder will come to the auction with a plan,” Geils said. “This isn’t just a real estate process; it’s also a political and development process.”

Inland Real Estate Auctions will launch a coordinated marketing effort for a portfolio sale of village-owned assets. According to Frank Diliberto, president and CEO of Inland Real Estate Auctions, the company is engaged for a minimum of six months, during which time several auctions can take place to sell key parcels in Bensenville.

The first two auctions will take place on April 23 and May 23. The May 23 auction will sell Legends of Bensenville, a former nine-hole golf course the village has slated for redevelopment. The 50.2-acre development site is located at County Line Road and Grand Avenue and is ideal for mixed-use, office and industrial park uses. With an appraised value of $22 million, the property will be sold without reserve subject to a minimum bid of only $11 million.

The April auction will sell eight additional properties absolute regardless of price or with low minimum bids. The properties include: 500 County Line Road, 101-103 Main St. in the downtown area, 501 John St., 6 N. Center St., 800 E. Jefferson St., 210 and 228 W. Irving Park Road and 10 W. Brookwood. Additional properties are expected to be added in one to two weeks.

The company’s role will extend beyond traditional auction and brokerage services to include transaction structuring, financing components, press activities and working with buyers and the village to define value, Diliberto said. “Most importantly, the auction process will achieve results in weeks, not months or years,” he added.

The village government is offering financial incentives to help offset the cost of development, meeting the buyers’ needs in the current real estate market. Bensenville, under Geils, has made development a top priority and, as a result, is achieving a substantial influx in its economy. “The village intends to assist in any way possible to facilitate development of these properties,” Geils said.

The first auction is scheduled to take place in April. Due diligence is underway, and bidders will be able to visit the property and complete their own due diligence prior to the auction. To overcome the financing obstacles in the current market, approved auction lenders will be integrated into the offering, allowing bidders to pre-qualify and have funds in place prior to the auction. Approved lenders are available by calling the auction line at (630) 990-5353. Sales and winning bidders’ development proposals are subject to village board approval.

Bidders’ seminars and property inspections will begin in March and interested bidders are asked to call the auction line at (630) 990-5350 for further information and to receive a bidder’s information package.

“The auction solves three problems occurring in the market today,” Diliberto said. “It finds buyers quickly, providing cash sales to the seller; it defines the value of the properties by open, competitive bidding and it allows the seller to examine all properties and all buyers at one time. These are the primary reasons for the growth of real estate auctions among some of our institutional and developer sellers. For buyers, it provides a one-time opportunity for them to name their price for a property.”

The Bensenville auctions come at a time when the use of real estate auctions is at record highs. According to Inland Real Estate Auctions, the greatest increase in the use of auctions has come from corporate sellers, where companies like Intel Corp and Allstate Life have used the process, and from leading developers across the country.

One of the nation’s top auctions firms, conducting transactions from coast to coast, Inland Real Estate Auctions is part of The Inland Real Estate Group of Companies, Inc. (www.inlandgroup.com), a group of separate companies which collectively have been ranked as the 5th largest shopping center owner in North America, the 5th largest property manager in the United States and 16th largest Financial Intermediary in the United States, Inland is one of the nation’s largest commercial real estate companies. Inland’s national headquarters is in Oak Brook, Ill.

Posted: 02|27|08 at 8:55 pm. Filed under: Press Release.