SANTA ROSA, CA—Newmark Cornish & Carey Wine Services and Williams & Williams are now part of a joint initiative to sell Northern California wineries, vineyards and related properties via auction. This process offers clients access to an expanded buying pool and quicker closings. The collaboration aims to capture the growing market for wine-related properties which attracts professional businesses to hobby vintners. From list to close, deals typically take 75 to 90 days, far faster than traditional sales transactions.
Real estate auction company, Williams & Williams, through its sister company, the Auction Network, is the only major auctioneer to conduct live auctions simultaneously at properties and online. Remote bidders compete with those at the physical site, providing the full transparency of a live auction, while expanding the buyer base and resulting in bids significantly higher than online-only auctions.
As part of this announcement, GlobeSt.com chatted with Fontana Fitzwilson, executive vice president of Williams & Williams, and Kevin Foster, senior associate of Newmark Cornish & Carey, about the origin of the joint venture and the benefits of the service.
Fitzwilson tells GlobeSt.com: “We initially contacted Newmark Cornish & Carey about a property for sale to create urgency, competition, market value and liquidity that auctions generate. This led to the broader partnership of two big brands working closely as a team.”
GlobeSt.com: What are some of the business and sale issues wine property owners face?
Foster: Elements outside of human control greatly impact the business of growing grapes and cultivating wine. Sun, water and temperature are factors the winery owner must negotiate every day. A time-definite sale mitigates the risk of crop valuation shifting during the time of marketing to a traditional buyer. Also, timing a sale prior to harvesting the year's vintage can be an advantage.
GlobeSt.com: Why are wine property clients in particular need of the benefits of an auction?
Foster: Health, financial, partnership or estate issues can influence the urgency of a sale. Auction is of great benefit for sellers who require a time-definite real estate transaction in order to move on with their lives, to stop carrying costs for an asset they no longer want to own, to liquefy and pave the way for another real estate opportunity or simply due to life changes. An aggressive global marketing campaign can reach a large audience. And, auctions can be a very important tool in a broker's tool chest for unique assets that are harder to sell in the traditional process.
GlobeSt.com: Explain the pairing of Williams & Williams and Newmark Cornish & Carey.
Foster: Residential brokerage firms have traditionally handled the sale of small to mid-sized wineries, vineyards and boutique wineries. However, the leasing and sale of income-producing properties is the core of commercial real estate. Newmark Cornish & Carey is among a few commercial real estate firms in the nation with a specialization in the sale of wine-related properties and the only company that has implemented an auction initiative with the resources to handle these complex transactions.
GlobeSt.com: How does the process work on the actual auction day?
Fitzwilson: On the day of the auction, the as-is properties are open to inspection. The auction itself is typical of most auctions: It goes very quickly once the bidding process starts. The 10% down payment required on auction day is nonrefundable.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
