High-stakes auction
An auction to liquidate 13 Tombari-family properties attracted a roomful of Realtors, investors, attorneys and developers who bid up an assortment of mostly commercial land to the tune of $5.5 million.
The court-ordered auction, held inside the commissioner’s chambers at the Spokane County Public Works Building, featured properties jointly owned by Tombari family corporations. The sale was ordered after the property owners couldn’t reach an agreement on how to divide the complicated holdings, resulting in legal action.The cheapest parcel, a 1,360-square-foot slice of undeveloped land on the 800 block of East Third Ave., went for $1,100. The most expensive sold for $3 million as a crowd of about 70, mostly men, vied for the winning bid. A 25 percent deposit was required for the winning bidders, with two armed guards stationed nearby to watch over the proceeds.
Among the listings, a handful of familiar properties were up for grabs — including land that houses Ruby Street Antiques and the North Division Staples store.
Local developer Harlan Douglass was the big winner of the day, bidding $3 million for the Staples property. He also walked away with several lesser commercial properties, including land at Calispel Street and Francis Avenue.
Some attending the event called it a “who’s who” of real estate.
“I thought it was very educational. It gave me an opportunity to watch some of the movers and shakers in the community” as they competed against one another for the winning bids, said Christos Panas. Panas was the highest bidder on two pieces of commercial property, which he purchased for his mother’s trust.
Auctioning privately held real estate is uncommon in Spokane, said Carl Guenzel, a sales, leasing and development agent at Kiemle & Hagood Co.
Guenzel worked in conjunction with Witherspoon, Kelley, Davenport & Toole P.S. and retired Judge Jim Murphy to organize the auction.
The event was unusual because it featured a variety of residential, commercial and industrial properties that sold in a relatively quick time frame, Guenzel explained. While real estate wasn’t dirt cheap, he said people didn’t have to haggle for months over the purchase prices.
Plus, the auction process truly put the concept of market value into play, he said, adding that when sales prices were averaged, properties fetched 16 percent over their opening bids.
“I think that the people that bought felt they got a good deal,” Guenzel said.
Greg Wells, who came from North Idaho for the auction and lost out on several properties, said the prices were high compared with auctions that feature foreclosed real estate.
“If you want to pay that kind of money you better go see a Realtor and pay retail,” Wells said.
Some bidders walked away with an uncertain future after losing out to others with more money.
Mike Ferguson, who started Ruby Street Antiques, was outbid on the land that houses the business, now owned by his brother, Mark Ferguson.
They anticipated spending $300,000 for the property, which went for $350,000.
Ferguson said he brought a down payment of $80,000 but had to stop when bidding reached $300,000.
A friend quickly offered to loan him additional money for a down payment on a higher purchase price, but just as he attempted to re-enter the bidding, Murphy, who presided over the auction, said “sold.”
“I was going to walk out of there an owner. I simply ran out of money,” Ferguson said. “I was surprised at how high everything went, for sure.”
After years of having a great tenant-landlord relationship with the Tombari family, whom he praised, Ferguson is concerned over what the future holds for his brother’s business.
“My only hope is that the new landlord is kind.”