Auction Firm Targets Furniture Market Property
May 3rd, 2007 Category FurnitureAuction firms may not be associated exclusively with distressed property sales any more. But they aren’t exactly a sign of prosperity either.
This week, Oak Brook, IL-based Inland Real Estate Auctions, Inc. formed a venture with Alpha World Properties to promote auction sales of real estate assets associated with North Carolina’s furniture industry.
The firms said the newly-announced venture is intended to offer a prospective disposition option to owners of real estate facing vacancies as a consequence of the more challenging economic conditions facing furniture makers resulting from falling demand for furniture and more manufacturing business moving overseas.
Through the auction process, Inland and Alpha World said, selected properties will be marketed to other furniture users and also to alternative users interested in new development initiatives in High Point’s Core City.
The bi-annual High Point Market, the furniture industry’s largest trade show in the world at over 12 million square feet, draws more than 85,000 marketgoers every six months and pours more than $1 billion into North Carolina’s economy annually. Increasingly, however, High Point’s furniture manufacturing is facing increased competition from overseas and new challenges from a trade show in Las Vegas.
“The auction process is an effective tool to find buyers down the street or internationally,” said Frank Diliberto, president and CEO of Inland Real Estate Auctions. “Specialized properties, such as large scale furniture showrooms or distribution centers, are ideal for large-scale users. Often times, you need to reach beyond the local or regional markets to find the right buyers.”
Alpha World Properties, based in High Point, is a commercial real estate firm specializing in sale leaseback transactions and strategic consulting associated with the furniture industry. Inland Real Estate Auctions is one of the nation’s top real estate auction companies.
“The joint venture represents a perfect marriage of local expertise and national marketing power,” said Audie Cashion, president of Alpha World Properties and a member of the High Point Downtown Revitalization Board, the American Home Furnishings Alliance and the High Point Furniture Advisory Board.
An executive with Inland said the venture has already targeted properties for the the auction process.
“During my last trip, we inspected several hundred thousand square feet of first-rate showroom and distribution space,” said Paul Rogers, a senior vice president of Inland Real Estate Auctions.
Information from: www.costar.com
