Peracon Handles $1.72 Billion Sale

Extreme Digital Offering... Should you market an investment property listing without online access to due diligence materials? No way. That's according to Richard Baxter with Cushman & Wakefield's Capital Markets Group in New York City.

And Baxter should know. Earlier this year he sold the most expensive single building ever sold in the U.S., the MetLife Building in Manhattan for $1.72 billion, using Peracon's transaction management system.

Actually, Baxter was part of C&W's Capital Markets selling team (which included Stephen Jones, Yoron Cohen, Scott Latham and Jon Caplan). In fact, it took only a month from the beginning of marketing to acceptance of a non-contingent bid. Amazing.

According to Baxter, here's how a typical Peracon-assisted marketing campaign works. C&W sends out invitations to about 200 "qualified buyers." Normally half of these sign a Confidentiality Agreement for online access to the Offering Memorandum and web site.

First round bidding lasts two to four weeks, after which the seller selects the top three to five bidders for the second (and final) round of bidding. Second round bidders receive access to further due diligence materials. Finally, the winning bidder is chosen based upon three factors: "price and the ability to close," "timing" and any "special conditions."

According to CEO Brian McGowan, Peracon has facilitated the marketing of 5,000 transactions with an aggregate value of $50 billion over the past five years.

Peracon charges an annual subscription fee for a "seat license," which entitles a subscriber to unlimited usage. McGowan describes this flat-rate pricing as, "software as a service."

Sponsor Profile... Yes, this Dispatch issue highlights Peracon as a major supporter of PikeNet. Quite simply, sponsors make possible the free delivery of the PikeNet Dispatch to subscribers like you twice-a-week. Thank you, Peracon!