Sheldon Good & Co.'s BK

Well, I had no clue on this one. I know it happened the other day, but now that I am back home from vacation I cannot help but say a few words (beyond my previous tweet) about the Chapter 11 filing by Sheldon Good & Co., the Chicago-based real estate auction powerhouse.

The company says its filing can be blamed upon its late Chair and CEO, Steven Good, who sadly took his own life in January. Millions of dollars may be missing. Ouch. (By the way, a link to Steve's book and his web tribute are still on the website.)

Those who follow the company had to assume there had been some down times just because the market is in the tank, but you might also think the company might do some volume on liquidations caused by the economy. In fact the filing makes me wonder where the auction business is.

We also know there'd been a long standing fight between Steve and his father, company founder Sheldon Good, that led to the elder Good's departure from the company. (Crain's says he's listed as a creditor.) Here's an update with a quote from the senior Mr. Good.

In any event, this just adds to the sad course of what's going on in the market. I wish Alan Kravets and his team (some of whom I have met at business and sales lunches in the past) nothing but the best. I've always thought they did a great job for their clients, even when I was on the buy side of a deal they were selling.

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Auction Action!

I think that is what the PBS station used to say here when they did fund raising auctions every year back in the day. And I think you will see more of that in real estate, too.

Deal Junkie reports that you may see a few prominent auctions in the next few weeks (including the John Hancock Tower in Boston that was the subject of this post recently). The post also cites a New York Times story stating that an auction trade association has reported a sharp increase in activity.

Auctions in Chicago are not infrequent, due in no small part to the activities of Sheldon Good & Co., a national real estate company headquartered here. I am sure Shelley is doing well, notwithstanding the sad loss of Steven Good early this year.

But remember one thing: not all auctions are public. Take the EOP deal. That was essentially a private auction for the whole portfolio, followed by additional private auctions for some of the pieces. This is a great opportunity to maximize value when the time is ripe. Could that happen again? Sure. I could even see it with GGP, bankruptcy or not.

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