CHICAGO—As the region's commercial real estate market continues to show signs of strength, auctions have started to gain popularity for the sale of properties. William A. McEnery, for example, has decided to auction off his Creamery Restaurant portfolio. The seven locations have never been on the market, but will be sold at auction on Tuesday, April 7th at 12 PM. The gavel will fall at the DoubleTree Hotel, located in suburban Alsip at 5000 W. 127th St. Chicago-based Diliberto Real Estate Services has been hired to conduct the sale.
“The investment opportunity includes all business assets and operations, with a solid return as it stands,” said president Frank Diliberto. “However, due to the extraordinary locations and land flexibility, the stores are suitable for franchises or private operators to easily expand, by brand integration.”
As reported in GlobeSt.com, auctions are not just for bank sales and distressed properties. “Last year was when we started to see the shift,” Mary Fran Gill, operations manager, Auctions by ATG, recently told GlobeSt.com. She estimated that about 60% to 70% of the properties that her firm puts on the block these days are stable but the owners chose an auction to perhaps avoid brokers' fees or get a date certain sale.
The first Creamery location was opened in 1981 in downtown Frankfort, IL. However, most of these restaurants are less than ten years old. Locations include Orland Hills, Homer Glen, Frankfort, Manteno, Mokena, Manhattan and New Lenox. Stores offer drive thru's, inside and outside seating and cater mostly to families.
“Expansion was next on the agenda,” said McEnery. “But there is a fork in the road for me, and it's time to let someone else pick up where I left off. I am pursuing my personal goals beginning June 1st.”
Although online auctions have become more popular, this auction will be a traditional live open bidding format, with opening bids at a fraction of the portfolio's retail value. Buyers need to prequalify prior to auction and attendees must bring a cashier's check for $25,000 for each property they intend to buy. According to Diliberto, “bid packages provide due diligence, making the review of documents much faster than the conventional due diligence process, where buyers sometimes have to chase down information over months.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
