In an ironic turn of events, some mall property owners are selling struggling malls online.
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As e-commerce contributes to the trend of retailers shuttering their doors, mall owners are looking to online real estate marketplaces like Ten-X Commercial and Real Capital Markets to offload weak properties, The Real Deal reports.
Since it began to sell malls online in 2012, Ten-X has sold at least 50, including Midway Mall in Ohio, which was traded in July for $4.5M. Midway is one of 10 malls that have been peddled on the site this year.
Real Capital Markets has also gotten in on the online marketplace industry and has completed 57 mall transactions this year. Last year, the firm recorded 68.
Most transactions are still completed in person with the help of brokers, but lower-tier malls that garner less than $20M can be completed through online auctions because they tend to require less due diligence and negotiations than larger malls of higher value, the Wall Street Journal reports.
Properties are marketed for between 45 and 60 days prior to the auction. During this period, potential buyers are encouraged to complete their due diligence in order to prepare for the bidding process, which can take anywhere from two hours to two days.
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