Springfield Ohio Scattered Site Portfolio Sold & Closed Through PSO Auction by Gryphon

COLUMBUS, Ohio, Jan. 5, 2021 /PRNewswire/ -- Real estate and auction firm, Gryphon, has completed the sale of a 78-unit, affordable housing portfolio in Springfield, Ohio through a Private Selling Officer auction, an option for creditors who want to utilize auctioneers to conduct foreclosure sales instead of the county sheriff.

2002 Springfield Portfolio, LLC of Coral Gables, Florida closed on the sale of the mix of single-family homes and duplexes with its winning bid of $2.12 million for the properties at the end of the week-long auction in late 2020. The 10 percent buyer's premium increases the contract price to $2.33 million.

Gryphon Principal Rich Kruse said the marketing efforts of the Private Sale Officer generated about three dozen calls from prospective investors, with five registered bidders emerging from 14 parties who reviewed the projects' information package. 

"The main benefits of a Private Selling Officer sale compared to a foreclosure by the county sheriff are speed to market, control of the process, the ability to aggressively market the asset and inclusion of buyer-side real estate agents," Kruse said.

Marketing activities for the auctions Gryphon manages typically include a comprehensive outreach program including exterior photographs, signage, drone video, web postings, email promotion, outreach to local real estate community – agents, brokers and investors – phone banking, text blasts, and property info package.  When possible interior photos and pre-sale inspections are also included.

"Using all of these methods we are able to reach a higher percentage of the potential buyers and remove barriers to bidding," Kruse said.

Bidding on the foreclosed Springfield properties started at $1.6 million, or two-thirds the $2.4 million appraised value of the properties.

Portfolio lender Indigo Equity Holders I LLC initiated a foreclosure against City Forest of Springfield LP in 2018.  Once the property was released for sale, the auction concluded in less than 30 days.

The homes presented several challenges for interested bidders. The highest hurdle is the status as affordable housing units which restricts rental growth through the term of public agency financing; selling the homes as a package; and the inability, in this case, of allowing prospective bidders to conduct interior inspections.

"All of these factors lowered the pool of potential bidders," Kruse said. "Despite the challenges, we were able to work through the project, identify multiple qualified bidders and successfully complete the sale."

Kruse serves as managing partner of Gryphon USA Ltd., and oversees Gryphon Realty, an affiliated real estate brokerage, Gryphon Asset Management, a receivership and asset management practice and Gryphon Auction Group, a nationwide real estate auction firm focused on distressed property & commercial assets.  His engagements primarily focus on complex state and federal legal matters, Private Selling Officer transactions and business insolvency.

SOURCE Gryphon USA

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www.gryphonusa.com