CBRE has been engaged to sell Eagles Lodging, Sidney, MT in an online auction on December 3, 2015. Eagles Lodging is a 100-unit full service lodging complex located at 12293 County Road 344, Sidney, MT. The property will be sold to the highest bidder at or above $2,000,000.
Eagles Lodging was built in 2013 to serve the housing needs of the Williston Basin and Bakken Shale workforce. The personal property is being sold subject to a land lease, which is cancellable by the lessee. The new owner may assume the land lease and operate the business or they may terminate the lease and relocate the modular homes/units and other personal property. The 100 modular home units were appraised at $7 million on January 31, 2015. Significant other personal property not included in the appraisal will be transferred as part of the sale.
• 100 housing units, registration lobby, restaurant, fitness center, private and general use laundry facilities
• Daily, weekly, and long-term rentals available
• Well-constructed in 2013 and nicely furnished; full kitchen, living and dining rooms, full HVAC systems in each one and two-bedroom housing unit, flat screen TVs, integrated bathrooms, individual water heaters, over/under washer-dryer unit, wired for cable and internet access • Multi-plex units include private ¾ bathroom with water heater, wired for cable, and internet access with flat screen TV
• Two large general use laundry facilities (separate washers and dryers)
• Large full-service industrial/commercial laundry center • 50 two bedroom, two bath 560 sf modular homes; 25 one bedroom, 1 bath 425 sf modular homes; 25 one bedroom units are 10-plex blds. w/10 sleeping rooms
• Land Lease with extensions is cancellable by Lessee
• General Maintenance facility
An initial bidding registration deposit of $75,000 will be required in order to bid. Onsite inspections will be held by appointment only. CBRE representatives will be available to answer questions about the auction process, procedures, as well as the property. Detailed property information will also be available for review including the purchase and sale agreement. For this, and other information about the auction, including the terms and conditions of the auction and a brochure, prospective bidders should visit www.cbre.com/auctionservices or call CBRE Inc. at 800-815-1038.
Owners are increasingly turning to CBRE’s online auction process to sell a property with speed (8-weeks) and certainty on an as-is, where-is basis with not contingencies. The owner is essentially telling the market that they are a seller subject to their terms of sale and the buyer will decide what they are willing to pay for the property based on the owner’s terms. CBRE Auction Services’ joins forces with its local investment sales professionals so that our clients receive best in class brokerage, consulting, and auction services in the same transaction. This teaming approach coupled with our wide-ranging marketing program positions the property to generate maximum proceeds at auction in an open and transparent process based on the auction terms.
Properties can be sold at auction either absolute, minimum bid, or with an undisclosed reserve. Absolute means that the owner will sell the property to the highest bidder regardless of price. Minimum bid means that the owner will sell the property to the highest bidder that bids at or above the stated minimum bid price. If a property is offered subject to an undisclosed reserve price, the owner agrees to sell the property to the highest bidder at or above the undisclosed reserve price.
Online auctions allow a bidder to bid from their computer or mobile device from anywhere in the world that has internet service. CBRE’s online auctions are generally two hours in length and in the event there is a bid in the last two minutes of the auction, the auction clock will extend to three minutes until there are no more bids. This prevents a situation where someone tries to bid in the last second in hopes of winning the bidding. We suggest that bidders do not wait until the last second to bid for fear that the bidder does not place their bid before the auction clock expires.
The terms of the auction can vary from auction to auction, however, CBRE’s online auctions generally requires bidders to wire an initial bidding registration deposit to the title company one business day prior to the auction. The winning bidder will be required to increase their initial bidding deposit to 10% of the purchase price within 3 business days of seller acceptance of the high bidder’s bid. This money will be treated as earnest money and will be applied to the purchase price. Closing is generally 30-45 days from the date of seller acceptance of the winning bidder.
The auction process of sale will continue to grow in popularities as the owners and buyers discover the efficiencies that are achieved with this method of disposition.