Buck Wargo in vegasinc.com reported:
Eighty-four percent of foreclosed commercial properties and bank notes up for auction this week in Nevada sold for more than $341 million, prompting analysts to suggest it will set a bottom price and spur investors to jump into the market.
Auction.com announced a 58% “overall recovery rate” and a 77.6% recovery rate on large balance notes (greater than $30 million).
Kevin Higgins, a vice president with Voit Real Estate Services, said the sales are a reflection of a lack of distressed commercial properties coming on the market and pent-up demand.
There are a lot of equity funds and other groups looking for a bigger return than the little they are earning on a money-market account, he said.
“That tells me there’s a lot of money out there looking to find a home and that people are willing to take bigger risks to get those returns,” Higgins said. “In the past, you wouldn’t have seen as much activity, so it surprised me for sure.”
Hubble Smith in the LAS VEGAS REVIEW-JOURNAL observed:
“Multifamily housing was the hot investment on the final day of an auction of foreclosed Las Vegas commercial real estate properties and delinquent commercial loans valued at $1 billion, a broker for Colliers International said Thursday.”
All of the nine multifamily notes sold.