Motivated bidders drove robust results in an online auction of foreclosed assets from a major CBD processor’s facility in Cadiz, Kentucky. Tiger Group sold the processing, lab and material-handling equipment assets, while Tranzon Asset Advisors liquidated the real estate.
In the August 10 sale, Tiger’s Commercial & Industrial division completed the sale of all of the available assets from the hemp-processor’s 86,500-square-foot facility in Cadiz, which is part of the Clarksville, Tenn., metropolitan area.
In a separate timed online auction, Tranzon sold the building and 14.5-acre site for $2.1 million. The real estate’s appraised value was $1.6 million.
“When we took a step back and looked at the numbers on the sale of this equipment and real estate, we found that the proceeds exceeded our estimates by 45 percent,” said Jonathan Holiday, Director of Business Development, Tiger Commercial & Industrial. “That speaks to a number of dimensions, including the resurgence of the North American economy and CBD industry, the marketing reach of both firms, and the attractiveness of the assets on offer.”
Tiger’s international marketing effort-- which included sending 85,000 emails about the event-- brought more than 22,000 views to the auction page at SoldTiger.com. All told, the 160 lots of processing and other equipment drew 4,018 bids.
“Our marketing efforts brought in highly motivated buyers from the hemp, cannabis, biopharma food-and-beverage, robotics, farming, machinery and other industries,” Holiday noted. “Tiger’s targeted marketing strategy centered on tailored mailing lists, social media, advertisements in trade publications, and a call campaign to industries that would benefit from the equipment.”
While most registered bidders were from the United States, others came from Belgium, Canada, China, Costa Rica, India, Jordan, Mexico, Pakistan, and Trinidad-Tobago. In the end, the equipment was acquired by 28 winning bidders.
Sought-after items included two 2019 Merlo telehandlers, three 2019 Precision Extraction Solutions automated solvent evaporators, a 2019 UIC short-path distillation plant, a 2019 Shimadzu high-performance liquid chromograph, and a Tuffman rotary trommel. “The eventual sale price for those items exceeded Tiger’s expectations, with an exciting bid process,” Holiday said.
The real estate drew 157 placed bids, with Tranzon’s webpage for the auction attracting 5,215 views from would-be buyers in Kentucky, Florida, Indiana, New Jersey, New York, and Pennsylvania. The bidding was extremely competitive based on the desirability and location of the property. The winning bid for the real estate came from a local agricultural business.
“It is evident that the joint marketing efforts of Tranzon and Tiger Group hit all intended target markets and brought the best buyers,” said Jordan Conlee, Executive Vice President, Tranzon Asset Advisers. “The winning bid of $2.1 million far surpassed all expectations, but with a solid group of bidders who saw the upward trend in demand for industrial real estate, the winning bidder got an exceptional buy.”