Goihgr goingr gonerrr Lumberyard auctions dispose of invento ryt properties

The next round of Stock auctions will be held the middle of this month, disposing of properties in Bakersfield and Hidden Valley Lake, Ca.; Boise, Pocatello, and Preston,Id.; Orem, Ut.; Kemmer, Wy., as well as in Texas, Ohio, Michigan, Minnesota, Wisconsin, Pennsylvania, and Florida.

Also this month, on Jan. 12, lumber and equipment from Simmen Wholesale Lumber, Sacramento, Ca., will be offered by Murphy Auctions. Gary Simmen started the business in 1974 as a brokerage and wholesale operation, but added a distribution yard and remanufacturing facility in 1980.

f, ucrroNs oF sHUTTERED FACTLTTTES and surplus inventola,ry have become a sure sign of the economy's effect on lumber and building material dealers and distributors.

"This is a buying opportunity and very indicative of a major trend in the market today," said Joshua Olshin, president of auctioneer Tranzon Integrated Property Group. "Banks are not the only ones selling properties in what might be refened to as the current buyer's market."

In mid-December, Tranzon started auctioning off the first of25 surplus properties in 14 states as part ofthe postbankruptcy liquidation plan for Stock Building Supply.

"On behalf of our client. we have chosen the auctionprocess as the most efficient method to market and sell a large portfolio of properties in order to maximize proceeds in a timely manner," said Ken Zakin, senior managing director of Newmark Knight Frank, an international real estate advisory firm. "Tranzon is a leading auctioneer and we expect these auctions to allow our client an acceptable exit given a difficult climate."

The Gores Group, a private equity firm based in Los Angeles, Ca., bought 5l%o of Stock, while parent Wolseley kept a 49Vo interest in the company. Of the chain's more than 200 locations, only 100 in 19 markets were kept open.

The Stock auctions consist of shuttered facilities, as well as several lots that were acquired for expansion but never used. The first set of auctions, held Dec. 15 and 16, included properties in Salisbury, Md.; Acworth, Ga.; Sanford, Durham and Hendersonville, N.C., and Timmonsville, S.C.

Last month saw a flurry of LBM auctions. On Dec. 22, Rosen Systems conducted an online auction of the inventory of United Building Products' final location in Dallas, Tx. The roofing products firm started 20 years ago and was based in Albuquerque, N.M.

In the preceding weeks, Monticello Lumber, Monticello, In., auctioned off its building and property; King City Lumber, King City, In., auctioned off excess inventory and equipment from two locations, and Newmeyer Lumber, Rahway, N.J., auctioned off its inventory, yard and office equipment and warehouse supplies.

By Loren Krebs