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									                                                                                                              WInter 2010




REAL TRENDS
A Publication of Chartwell Group, LLC and TCN Worldwide                                                           Vol. 19, No. 4



 Accelerated Marketing
                                                                   units on the market either conventionally or via foreclosure.
                                                                   There had been no sales at the development in the eighteen
                                                                   months prior to the Auction. The Bank authorized twenty

 4th Quarter 2010                                                  units to be guaranteed sold, subject to low stated minimum
                                                                   bid. Ownership wanted to send a strong calling card to the
                                                                   marketplace that they were serious about making sales at the
                                                                   development and set their property apart from an influx of
 DEVELOPER CONDOMINIUM AUCTIONS                                    available new-construction residences available throughout
 PRODUCING SUPERIOR RESULTS                                        Las Vegas.

 NATIONWIDE SELLING TO INDIVIDUAL                                  Faced with the prospect of offering condos in a market that
                                                                   was in a price and inventory free fall, Chartwell instituted a
 HOME OWNERS                                                       state-of-the-art auction program designed to focus the attention
                                                                   of all potential first time buyers, empty nesters, second home
Newport Lofts Condominiums • Las Vegas, Nevada                     buyers and investors on Newport Lofts at the expense of all

                                             C
                                          ompleted in 2007,
                                          Newport Lofts is a
                                    168 unit high rise, luxury
                                                                   other available properties. Ads were placed in both local and
                                                                   out-of-town newspapers in non-traditional real placements
                                                                   in the news, sports, and entertainment sections. Chartwell
                                    development that was built     was the first real estate firm in Las Vegas to advertise on the
                                    in an area about one mile      homepage of Cox Media, the major internet provider in the Las
                                    south of downtown and          Vegas area. These ads reached over 1,000,000 subscribers over
                                    about three miles north        a thirty day period allowing Chartwell to tap into a previously
                                    of the Las Vegas Strip.        unreached pool of potential buyers.
                                    The area surrounding
                                    the development was            During the four week open house period at the property, over
                                    planned to be known            500 groups of prospective buyers inspected the property and
                                    as the Arts District in        160 registered bidders attended the auction. Thirty-two (32)
                                    an attempt to revitalize       units were sold on auction day, twelve more than the seller’s
                                    this e c o n o m i c a l l y   ultimate goal and two more than their self imposed limit. An
                                    bypassed neighborhood.         average price of $138.15/sq. ft., well over the sq. ft. average
Unfortunately this and three other nearby developments were        MLS asking price for other Newport Lofts Condo Units.
completed just prior to the massive economic downturn in the       Twenty additional units were sold by Chartwell on a post
Las Vegas area. Newport Lofts was 65% sold (112 of 168             auction basis at prices equal to or in some cases greater than
Units) at the time Chartwell Group received the exclusive          auction day levels with total sales exceeding $10,500,000.
listing to offer the remaining units at auction for the bank       Handling the Auction Sale and Post-Auction marketing
that had foreclosed on the original developer. At the time of      program were Jim Byczek and Bud Blinick, Managers of the
the assignment there were over 30 previously sold, non-bank        Chartwell Group Chicago Office.



                                                                    In this Issue:
                                                                    Developer Condo Sales                                     1
Chartwell Group, LLC                                                Receivership & Sheriff Sales                               2
1301 E. Ninth St., Suite 2210     Member & Owner of
Cleveland, OH 44114                                                 Announcements                                              3
Tel: 216.360.0009                                                   Auction Team                                               4
www.chartwellgroup.com          www.tcnworldwide.com
Chartwell Group, LLC

                                                                                          checks completed for the remaining units.                This 118-room Econolodge limited
  ONE PARK VISTA CONDOMINIUMS,                                                            While the Developer was only obligated                   service hotel was underperforming and in
  WINSTON-SALEM, NC                                                                       to sell eight units Absolute at the auction,             Receivership for 21 months. The property,
                                                                                          the remaining 21 Units were completely                   with many deferred maintenance issues,
                                                                                          sold out at a sales volume of $6,645,000                 was initially stabilized by the Receiver
                                                                                          with all signed contracts accepted by the                with 63 of the 118 rooms returned to
                                                                                          seller. Jason Dolph, head of the Chartwell               operation. The hotel was then scheduled
                                                                                          Group, Charlotte, NC Office accomplished                 for a Sheriff Foreclosure Sale to be
                                                                                          pricing at auction was at 67.2% of the last              conducted by the County Clerk. Chartwell
                                                                                          asking prices and averaged 324% above                    Group recommended an alternative to
                                                                                          the suggested opening bids.                              the traditional methods of publishing and
                                                                                                                                                   conducting a Sheriff Sale. A higher sales
                                                                                                                                                   result could be anticipated through a widely
  Completed in 2008, these center city mid-
  rise luxury residential condominiums                                                    WIDELy ExPOSED HOTEL                                     exposed and well-advertised national
                                                                                                                                                   marketing program in conjunction with
  were only 34% sold (11 of 32 Units) at                                                  RECEIVERSHIP AUCTIONS                                    the Sheriff Sale. The marketing program
  the time Chartwell Group received the                                                   & SHERIFF SALES ARE                                      and the Auction itself would be conducted
  exclusive listing to offer the remaining
  units at auction form the developer.
                                                                                          PRODUCING SUPERIOR RESULTS                               by Chartwell Auctioneers. The County
  Previous asking prices for the units had                                                THROUGHOUT THE U.S.                                      Court of Common Pleas approved the
                                                                                                                                                   retention of Chartwell Group to market

                                                                                          R
  ranged between $329,000 to close to                                                          eceivership Auctions and Sheriff                    the property at Auction.
  $1,000,000 for a 2 two-story penthouse                                                       Sales of many types of Commercial
  unit with private elevator. There had                                                   Assets, particularly Hotels are producing                The property had to be sold for a minimum
  been no sales at the development in the                                                 superior results for secured creditors                   of 2/3 of the current appraised value or not
  eighteen months prior to the November                                                   throughout the U.S. Chartwell Group’s                    less than $637,200. The result of many
  13, 2010 auction. The Developer, One                                                    implementation of “commercially                          Sheriff Sales is that there is little or no
  Park Vista, LLC authorized eight units to                                               reasonable” high profile open outcry                     bidding from third-party qualified buyers
  be guaranteed sold absolute, regardless of                                              real estate auctions for Receivers and                   and the secured creditor (lender) ends up
  price with no minimum bid. Ownership                                                    Sheriffs has: (1) allowed Court Appointed                owning the real estate rather than obtaining
  wanted to send a strong calling card to                                                 Receivers to demonstrate that the property               a satisfactory sales price from a serious
  the marketplace that they were serious                                                  has been “widely exposed” and that many                  buyer. This results in additional carrying
  about making sales at the development,                                                  prospective bidders competed for the                     costs and management expense to the
  and set their property apart from an influx                                             property on a non-contingent basis and                   lender. The Chartwell Auction Marketing
  of available new-construction residences                                                (2) allowed secured creditors to bypass                  program began 5 weeks in advance of
  available throughout the Greensboro,                                                    bidding at foreclosure as sales are being                the auction date with local, regional,
  Winston-Salem, High-Point area.                                                         generated to third-party buyers at a higher              and national advertising. Scheduled
                                                                                          price level.                                             on-site inspections began three weeks
  Chartwell Group’s high –profile marketing                                                                                                        in advance of the Auction. On Auction
  program combined with a substantial
  public relations campaign received a                                                     ECONOLODGE HOTEL                                        Day, there were 7 Registered Bidders in
                                                                                                                                                   attendance, each with a cashier’s check
  tremendous buyer response and favorable                                                  5431 SEVENTy-SIx DRIVE,                                 for $50,000. Bidders came from Ohio,
  media coverage from local newspapers and                                                 AUSTINTOWN (NORTHEAST), OHIO                            Pennsylvania, New York, Maryland, &
  television news. 751 groups of prospective                                                                                                       Ontario, Canada. The winning bid in
  bidders registered at eight pre-scheduled                                                                                                        this open-outcry Auction was $900,000,
  open house events conducted by Chartwell                                                                                                         about 94.7% of the appraised value and
  Group Staff. 254 groups purchased the                                                                                                            41.25% above the Published Minimum
  required 140 page bidders packet in order                                                                                                        Bid Price. The secured creditor never bid
  to qualify to bid at the auction. Two pre-                                                                                                       at the Sheriff Sale and was pleased to have
  auction sales were generated. On Auction                                                                                                         this asset sold on a non-contingent basis
  Day, 110 registered bidders with cashier’s                                                                                                       with payment completed in less than 30


                                                                          Cleveland Office:
                                                                          1301 E. Ninth Street, Suite 2210, Cleveland, Ohio • 216.360.0009
   The information submitted herein is not guaranteed. Although obtained from reliable resources, it is subject to errors, omissions, prior sale
   and withdrawal from the market without notice. Broker has made no investigation and makes no representation of the property.
                                                                                                 4th Quarter 2010 | Accelerated Marketing

days. Mark Abood and Michael Berland            The borrower appealed the ruling approving      only 10% occupancy and installed an on-
managed the sale for Chartwell Group,           the sale by the Court of Common Pleas           site caretaker at the other closed hotel to
with Michael Berland as the Court-              to the Eighth Appellate District Court of       prevent any property vandalism.
Appointed Auctioneer.                           Appeals, Cuyahoga County, OH. The
                                                Eighth Appellate Court ruled in favor of        Based on the experience and track record
SUPER 8 HOTEL, ExIT 231, I-71,                  the Secured Creditor that “A receiver sale      of Chartwell Group, the Receiver moved
STRONGSVILLE (SUBURBAN                          is an alternative remedy to a sheriff’s sale    to have Chartwell Group market and
                                                (in Ohio) for enforcing and satisfying a        conduct a sale of the two assets. The Bank
CLEVELAND), OHIO                                judgment.” Chartwell Group, working             opted to allow the properties to be offered
                                                with the Receiver set legal precedent in        absolute, without reserve and regardless
                                                Ohio further demonstrating the effective        of price at the August 24, 2010 Real Estate
                                                and alternative use of a Receiver’s Sale as     Auction conducted by Jason Dolph, head
                                                opposed to a Sheriff Sale. It is anticipated    of the Charlotte, NC Office of Chartwell
                                                many more commercial assets will be             Group. Twenty-Six Bidders from ten
                                                sold through the use of Receiver Sales          states bid at the auction that resulted in
                                                in the State of Ohio and other states as a      sales in excess of $1,200,000 about 495%
This 93 Room Super 8 Hotel was put into         more streamlined and effective method           above the Published Suggested Opening
Receivership about March 2009 and was           of orderly transfer of title in the case of a   bids of the subject properties.
about to lose its Super 8 Franchise. The        default. Numerous secured creditors are
Receiver appointed by Cuyahoga Court            showing a preference for this method of
of Common Pleas was able to stabilize           property disposition and realization of
operations and complete replacement             proceeds from sale.
                                                                                                   MATTHEW S. KING & JASON DOLPH
of roofs on the two building facility                                                              AWARDED CCIM DESIGNATION
and move toward a possible sale of the          BUDGETEL INN, DILLON,                              Achievement Signifies Expertise in
asset. A reading of Ohio law regarding          WALTERBORO, SC & FORMER                            Commercial Real Estate
Receivership did appear to provide the          KINGS INN, DILLON, SC SOLD AT
power to the Receiver, through the Court,                                                          November 2010 -- Matthew S. King,
to effectively sell such an asset without the   RECEIVER AUCTION, IN STATE                         CCIM & Jason Dolph, CCIM, AARE
                                                                                                   both of the Southeast Office in Charlotte
mechanism of a Sheriff Sale. The Receiver       CAPITAL OF COLUMBIA                                of Chartwell Group LLC, have earned the
recommended to the Court a Chartwell                                                               Certified Commercial Investment Member
Group Auction Services Marketing                                                                   (CCIM) designation from the CCIM
Program that would “widely expose” the                                                             Institute, one of the leading commercial
                                                                                                   real estate associations in the world. The
property; disseminate information; allow                                                           designation was awarded late October at
for numerous physical inspections of the                                                           the institute’s annual business meetings in
property; and conduct an open outcry                                                               Orlando, Florida.
auction. The authorized Opening Bid for
the property was $910,000. Dozens of                                                               BUD BLINICK & WILLIAM NICE
prospective buyers inspected the property                                                          AWARDED AARE DESIGNATION
beginning three weeks prior to auction.
                                                                                                   Bud Blinick, AARE Vice President of the
The auction at the hotel generated eight                                                           Chartwell Group Midwest U.S. Chicago
registered bidders from five states, each                                                          Office and William P. Nice, Jr., SIOR,
with the required $75,000 non-refundable                                                           AARE Principal/Co-Managing Director of
cashier’s check to bid. After ten minutes of    A Central California Bank provided                 the Chartwell Group, have been awarded the
active bidding handled by Gordon Greene         financing for two hotels on the Interstate         AARE Designation (Accredited Auctioneer
                                                                                                   of Real Estate) by the Educational Institute
& Dave Wagner of the Chartwell Group,           95 Corridor in Eastern South Carolina              of the National Auctioneers Association.
the successful bid was $1,273,300 with          in 2003. When the borrowers defaulted,             This designation allows them to ensure they
contract signed by both high bidder and         the bank had no interest in becoming               offer the highest level of professionalism
Receiver for a closing to take place in 50      the owners of the properties and moved             and the most up-to-date information when
days on a non-contingent basis. The Court       to have a Receiver appointed. The                  it comes to selling properties at auction.
of Common Pleas approved the sale.              Receiver stabilized one hotel that had


                                          For further information about our Accelerated Marketing Program, please visit:
                                                                                          www.chartwellgroup.com
Chartwell Group, LLC
1301 E. Ninth St., Suite 2210
Cleveland, OH 44114
Tel: 216.360.0009
www.chartwellgroup.com




    Sharing your sense of Ownership and Accountability

      2419 Coit Road Suite A, Plano, Texas 75075
                   1-888-TCN-INFO
                www.tcnworldwide.com




    tCn WOrLDWIDe WITH 1200+ INDUSTRY EXPERTS IN 62 COMMERCIAL OFFICES SERVING OVER 200 MARKETS INCLUDING:
    LONDON • NEW YORK • WASHINGTON DC • CLEVELAND • CHICAGO • DALLAS • LOS ANGELES • SYDNEY • SEOUL • BEIJING




                           Chartwell Group Accelerated Marketing Team
                                                         Representing over 125 years of Real Estate Auction Experience




                                                                                                Auction Team (top left - right): Gordon J. Greene, CCIM - Principal,
                                                                                                Michael E. Berland - Executive Vice President, David C. Wagner - Principal,
                                                                                                R. M. “Mac” Biggar, Jr., SIOR, CCIM - Principal, Bud Blinick, AARE - Vice
                                                                                                President, Jim Byczek - Vice President, Jason Dolph, CCIM, AARE, - Senior
                                                                                                Vice President, Paul Lynn, CCIM - Vice President, William P. Nice, Jr., SIOR,
                                                                                                AARE - Principal, Mark Abood, Esq. - Senior Vice President, Curt Schneider,
                                                                                                Vice President, Matthew S. King, CCIM - National Auction Coordinator, Anna
                                                                                                Maria Hamm - Auctioneer

								
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