• Fri. May 13th, 2022

CoStar purchases Ten-X Commercial to transfer commercial real estate transactions online

CoStar GroupThe effort to become the biggest name in online commercial real estate is poised to take another big step forward as the company announced on Wednesday night it was buying Ten-X Advertising for $ 190 million in cash.

This will be CoStar’s second major acquisition in 2020.

Earlier this year, CoStar, which already owns Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartments.com, entered into a $ 588 million deal to buy Path Rent, who own Rent.com, ApartmentGuide.com, Locations.com and Lovely.com.

This deal will leave CoStar in control of nearly all of the top apartment rental websites in the United States.

But the company doesn’t stop at owning the online apartment rental market. CoStar also wants to put the entire commercial real estate transaction online.

And that’s why she buys Ten-X Commercial.

Since its launch in 2009, the Ten-X platform has processed approximately $ 7 billion in commercial properties, $ 6 billion in office properties, $ 4 billion in multi-family properties, $ 3 billion in hotel properties, and billions of other types of commercial properties.

The company initially focused on distressed properties, as did its sister company Auction.com, but both companies have also switched to traditional sales.

According to information provided by CoStar, Fannie mae, Bank of America, JPMorgan Chase, black stone, Starwood, Black rock, A capital letter, MetLife, LNR, UBS, PNC, and SunTrust have all used the Ten-X business platform to complete a commercial real estate transaction.

CoStar, which also operates the “busiest online marketplace for commercial property and land for rent and sale in North America and Europe”, will soon be able to integrate Ten-X’s transactional expertise into its websites, including LoopNet.com and CoStar.com.

Together, Ten-X and CoStar plan to create a new end-to-end commercial real estate platform, combining the unparalleled online audience of LoopNet and CoStar buyers with Ten-X’s clear leadership in live auctions. line for performing and struggling assets, ”CoStar Group CEO Andrew Florence said.

“The combination of our complementary capabilities is expected to create significant benefits for the brokers and the institutions they represent by exposing their properties for sale to the largest pool of potential bidders on the most trusted digital transaction platform and in delivering fast and reliable business execution, ”added Florence. “In the aftermath of the economic disruption caused by the global pandemic, we believe the volume of distressed properties entering the market will increase and this combined platform will support the market recovery.”

It is important to note that this agreement does not include Auction.com.

In 2017, private equity company Thomas H. Lee Partners acquired a majority stake in Ten-X, the parent company of Ten-X Commercial and Auction.com.

According to CoStar, after this agreement, Ten-X Commercial was separated from other Ten-X companies, including Auction.com. This offer only includes Ten-X Commercial. Thomas H. Lee Partners will retain ownership of Auction.com.

“Today, only 1% of all commercial real estate sales transactions take place online,” said Ten-X CEO Steve Jacobs.

“Like the CoStar Group, we are focused on increasing volume and efficiency, and we have been dedicated to meeting the massive and untapped demand for digital commercial real estate solutions,” added Jacobs. “We are seeing significant demand for a one-stop-shop platform that provides solutions across the entire transaction continuum and we are excited to combine our complementary capabilities and strengths with CoStar to meet this demand. “

The companies expect the transaction to close in the third quarter of 2020.

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