The $96 million sale of California's Manhattan Tower reportedly topped a Guinness World Record as the largest online transaction ever auctioned in the United States.
The announcement was made by Auction.com, an online real estate marketplace, on Tuesday, August 4, reports NBC News. The Manhattan Tower is located in Manhattan Beach, California - an elite coastal community within Los Angeles. The 309,734-square-foot property consists of two six-story office towers and was built in 1985. The $96 million Manhattan Tower sale was the highlight of Auction.com's previous week's online transactions, wherein the company reportedly sold more than $300 million in commercial real estate assets. The transaction topped Mark Cuban's Guinness World Record, wherein he purchased a Gulfstream jet online for $40 million.
The NBC News report also cited a statement from Rick Sharga, executive vice president at Auction.com, who mentioned that real estate transactions are now becoming more high-tech. "I think the fact that we had a buyer pay $96 million to buy a commercial property online shows that real estate really is starting to move onto the Internet," Sharga said.
Previously, only distressed properties were being sold through real estate auctions, be it online or offline. Now, even non-distressed and high quality properties are snapped online by buyers. Sharga explained, "The big difference here is people not just looking at and researching real estate online, they're buying real estate online, traditional, non-distressed, high-quality properties. Now there is a sea change."
George Smith, general manager of Auction.com's commercial real estate division, also mentioned that the company will continue to bring high-quality commercial real estate options to their website, reports Housing Wire. Smith added, "As the commercial real estate landscape changes, the way people buy and sell real estate evolves, and Manhattan Towers is proof of just that. Over half of the commercial properties we bring to auction are Class A, non-distressed assets and that's a trend that will only continue to grow."
The Manhattan Tower sale was facilitated by Auction.com, with CWCapital as the seller and Eastdil Secured as the broker.
