LoopNet Inc., the company behind leading US commercial real estate portal loopnet.com, has invested in online auction service AuctionPoint.
The terms of the deal were not disclosed. LoopNet explains it will now endorse AuctionPoint as its preferred online auction solution for commercial properties, and provide its customers with discounts on AuctionPoint services.
AuctionPoint works by setting up customised auction websites for commercial properties. Brokers can then set a minimum bid, pre-qualify their bidders, and give qualified bidders access to due-dillegence material online. On the day of the auction, the broker signs a purchase agreement with the winning bidder.
The process costs US$395 per auction, with AuctionPoint collecting a 1.75 percent buyer's premium from the winning bidder.
"LoopNet is committed to bringing our clients the best possible technology solutions in commercial real estate, and AuctionPoint is one of those services," said Jason Greenman, LoopNet’s senior vice president of corporate development. "With its unique broker-friendly approach, brokers can offer their clients an accelerated disposition process, while maintaining their full commission.”