Old bank branches are hot property at real estate auctions
The digital transformation of the banking industry means fewer brick and mortar branches but that appears to be pleasing real estate investors.
Old bank branches were among the most popular lots at two recent auctions from John Dixon & Associates.
"There are several takeaways from these two auctions, and they're all good for real estate owners and investors," said John Dixon, president of the Atlanta-based auction company. "One is that there is a good market for bank branches, which is important in a period during which many banks are consolidating locations. It's important to remember that good bank branches are suitable for a wide range of businesses, including offices and retail. In fact, of the nine that we sold, only two were purchased by financial institutions."
The firm held two auctions with five days with 9 closed bank branches in five states selling for more than $1.8 million followed a few days later, by dozens of residential and commercial properties in Georgia, South Carolina, North Carolina, Florida and Costa Rica selling for approximately $3.3 million, for a total of approximately $5.1 million.
Retail units snapped up
The auctions also saw demand for retail space with a Columbia, SC, retail center - with 11 non-condo retail units including 4 already leased – selling for approximately $1.1 million.
"Bidders were enthusiastic across the board, even for land and home sites, reflecting the continued strength in the economy and the availability of financing at historically low interest rates," said Dixon.
