RetailOfficeIndustrialProperty ManagementReal Estate InvestmentLand Development

    Real Estate Auction Purchase


    Real Estate Auction Purchase


    Aaron McDermott, CCIM found a listing for an absolute no reserve auction of a 100% occupied retail property in downtown Hammond for sale. The property was fully leased but the terms of the auction where no financing, inspections (other than arranged tours), non-refundable earnest money up front, and no contingencies to close. The auction was less than 1 month away but the opportunity could be great.

    Action Taken

    We had been in working with an investor looking for property in the Northwest Indiana area some months ago. He had mentioned he could be a cash buyer for the right deal. We knew beforehand a lot of due diligence had to be done.

    We interviewed the tenants during the auction process to determine any deferred maintenance issues. During that process we determined it was essential to give the tenants a sense of comfort with the possible new ownerships ability to be proactive to maintenance as the past owner had neglected

    Action Taken (cont)

    We analyzed and came up with a proforma including a budget for the capital costs and determined the maximum purchase price for the auction.

    Results Achieved

    At auction our investor was the successful bidder. The purchase price was 24% below the our maximum value. The purchaser paid cash and later refinanced the property. The new appraisal was 39% higher than the purchase price. Directly after closing we were also able to extend the anchor tenant by 5 years.

    Benefits to Client

    • Equity of 39% in property at closing
    • Increase initial term of primary tenant
    • Stabilized the asset
    • 24% purchase below our maximum value


    Latitude provided us with excellent due diligence before the auction so that we were able to successfully and confidently purchase the asset.

    -Jeff Keith Owner

    Research and Insights

    2023 Annual Market Report

    In 2023, Northwest Indiana's commercial real estate sector weathered shifts in interest rates and inflation,…

    View More
    2022 Annual Market Report

    We are pleased to present the 2022 Annual Report for the Commercial Real Estate market…

    View More

    Case Studies

    Challenge Aaron McDermott, CCIM found a listing for an absolute no reserve auction of a…

    View More

    Challenge Aaron McDermott was representing the franchisee of Buffalo Wild Wings on locating sites for…

    View More