Jones Lang LaSalle has launched a joint venture with Real Estate Disposition Corp. LLC (REDC) to provide an online auction sales platform for commercial property and note disposition. The commercial property auctions will debut with a 100,000-square-foot commercial property sale in October.
The joint venture merges REDC's auction capabilities with Jones Lang LaSalle's global commercial property and note sale experience.
‘This is an important new development for our clients as they can now maximize the value of their assets in a timely manner without up-front fees,’ says Jay Koster, president of Jones Lang LaSalle's Capital Markets practice. ‘Using an auction opens up a viable trading marketplace given market pricing is transparent.’
Investors can also auction notes of all property types and a variety of debt instruments, including first liens, second mortgages, whole notes, and subperforming or nonperforming notes.
‘We expect the community banks to begin selling their small-balance loans first, and our note auction platform will be a formidable tool for financial institutions seeking to consolidate and monetize loans of all sizes off their balance sheets," adds Bart Steinfeld, managing director of Jones Lange LaSalle's Real Estate Investment Banking unit.