How Unified Construction Systems Sold Their Commercial Property for 50% More Than Expected with KIKO Auctioneers

Key Takeaways

With more than 30 years in business, Unified Construction Systems has expanded its construction services, creating the need for a larger facility and upgraded equipment. It was an exciting time for the business owners – but one that also led to the question of what to do with the current facility. Unified called KIKO Realtors, Auctioneers & Advisors to explore their options, ultimately selling the commercial building and aging equipment. Converting those assets into cash freed the company to invest in growth and start the new year on solid footing.

Table of Contents:

• Why Did Unified Construction Systems Need to Sell?
• How Did KIKO Help Decide Between Listing and Auction?
• Why Did the Auction Process Outperform The Pre-Sale Appraisal?
• Is Auctioning Your Commercial Property the Right Move?

Why Did Unified Construction Systems Need to Sell?

Founded in 1992, Unified Construction Systems provides construction solutions to clients in Northeast Ohio and beyond, including a full range of building erection, maintenance, and restoration services.  

Jason Haws, CEO and Scott Wyler, COO, had each been with Unified about 20 years when the opportunity arose to purchase the company from its founder, Bob Cailor, in 2015.

Operating out of a 6,800-sq.-ft. facility in Akron, Ohio for many years, Haws and Wyler eventually grew the company to more than 50 employees – requiring a larger facility to support continued growth.  

“Since Scott and I purchased the business, we have grown,” said Haws. “We found a new, larger facility that allowed us to consolidate two of our businesses into one location. Once we bought our new facility and moved operations, the discussion turned to what we should do with the current building.”   

How Did KIKO Help Advise Between Listing and Auction?

“We talked about our options, including keeping the building and renting it out, but being landlords wasn’t in the cards, so ultimately, we decided to sell it. Then we discussed do we list it for sale or do we auction it,” Haws explained.

These are all questions many business owners face at some point in their careers. Unified decided to call Jeff Kiko, Realtor/Auctioneer, for advice.  

“We thought, ‘Let’s consult with those that know best – KIKO!’,” Haws said. “We made the call and you let us know options for listing the property and options for auctioning it. Our goal was to get the facility offloaded as quickly as we could, so we could focus on our business and not be hindered by this piece of property just sitting here.”

Unified chose to auction the real estate, which sits on 3.88 acres and has a commercial building with offices, a 25’ x 40’ pole building, a fully fenced yard with access-coded gates, and a rear storage yard opportunity.

“In the meantime, we had a lot of assets that were getting up in age, so we decided to sell some of those as well and use the cash to update our equipment,” said Wyler.

Why Did the Auction Process Outperform the Pre-Sale Appraisal?

Jeff Kiko sold the commercial property for $1.12 million during a live auction with simulcast bidding, while almost 200 pieces of commercial inventory sold through an online only auction that had a scheduled preview and pickup time.

The team at Unified was impressed with KIKO’s marketing exposure, the crew’s preparation leading up to the auction, and the final sales price.

“Based upon a prior appraisal we had done within less than 12 months, the real estate brought just over 50% more than what we were anticipating,” shared Haws. “That was truly exciting.”

“Demand for these types of properties – mid size building with good shop space and room for parking and storage – is strong right now,” explained Jeff Kiko, a licensed Auctioneer and Realtor with over 25 years of experience. “The auction created a competitive environment among multiple bidders, ultimately driving the real estate price higher.”

Equally impressive, Haws and Wyler estimated their equipment and industrial assets brought 30-35% above expectations

“After going through this process, any advice I could give to any commercial property owner that’s looking to sell, would be to reach out to KIKO Auctioneers & Realtors,” Haws remarked. “Truly a tremendous asset to have when making those types of decisions. They can definitely advise you on whether it’s best to sell or best to auction, based upon what your needs are at the time.”

Is Auctioning Your Commercial Property The Right Move?

Whether you’re weighing a traditional listing against an auction or simply wondering what your commercial property is worth in today’s market, KIKO’s team of experienced auctioneers and realtors can help you make the most informed decision.

Contact us today to get started.