CoStar Looks to Cash-in on Distressed Properties with $190 million Ten-X Acquisition

CRE data giant CoStar closes its $190 million acquisition of Ten-X just in time to profit from the Covid pandemic

by Dave McKenna, Editor CREB on June 26, 2020

Ten-X is an asset auction platform that was created to efficiently liquidate distressed commercial properties. Today CoStar has closed its $190 million acquisition of the transaction platform and will combine its CRE market data base with the Ten-X transaction engine just in time to profit from the coming surge of distressed real estate.

“In the aftermath of the economic disruption which is being caused by the global pandemic, we believe that the volume of distressed properties coming to market will surge and that this combined platform will support the market’s recovery,” said Andrew Florence in a press release announcing the deal.

Distressed Properties on the Rise

Credit rating agency FitchRatings has predicted commercial real estate default rates not seen since the Great Recession. According to its most recent June 2020 report, all asset types have reported significantly elevated delinquency, with the notable exception of multifamily which has actually improved in 2020 in year-over-year performance.

CoStar will integrate Ten-X into its real estate information and analytics platform, with its market-dominate LoopNet product.

Founded in 2009, Ten-X has expanded from its origins as a distressed real estate liquidation system with $24 billion in lifetime transaction volume. The acquisition by CoStar will give the marketing giant new leverage to profit from the distressed asset bonanza shaping up due to Covid.

The global reach of CoStars commercial marketing, which see 11 million visitors a month, will create a marketing and transaction platform that will facilitate a potentially massive volume of distressed properties, but could also begin to challenge the broker’s hold on commercial real estate transactions itself.

Photo by Tim Mossholder on Unsplash