Advertiser Disclosure

advertising disclaimer
Skip to main content
commercial real estate

CoStar Buys Ten-X Digital Platform; Creating Integrated Service for Distressed Property Sales


May 14, 2020 by Marc Rapport
Get our 43-Page Guide to Real Estate Investing Today!

Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.

*By submitting your email you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

CoStar Group (NASDAQ: CSGP) announced Thursday, May 14, that it is buying Ten-X, combining that firm's specialty -- identifying, marketing, and auctioning distressed properties -- with CoStar's commercial real estate information, analytics, and online marketplaces.

The $190 million transaction, when consummated, will allow CoStar to integrate the Ten-X digital transaction platform directly into both the LoopNet and CoStar digital marketplaces, "thereby exposing the properties that brokers are selling on the Ten-X platform to millions of potential buyers from around the world," CoStar said in the announcement.

Distressed properties and social distancing

The combined operation is intended to create an end-to-end commercial real estate platform that will help Washington, D.C.-based CoStar and users of its site take advantage of two trends being magnified by the coronavirus pandemic: businesses shuttered by the economic fallout and online searching and buying because of social distancing.

"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 CoStar CEO Andrew Florance.

"We see significant demand for a one-stop-shop platform that provides solutions across the entire transaction continuum, and we are delighted to combine our complementary capabilities and strengths with CoStar to meet that demand," said Ten-X CEO Steve Jacobs.

Jacobs said that currently only 1% of commercial real estate transactions take place online. His company's new owner plans to grow that number at the same time it helps boost its own bottom line fresh off what it called its best-ever first quarter report.

Buyers in 73 countries, blue chip client list

Irvine, California-based Ten-X, which qualifies and independently evaluates assets and prospects from a database of 400,000 buyers in 73 countries, said it has closed nearly $24 billion in sales on its platform since its creation in 2009, including retail, office, multifamily, and hotel properties.

Clients of its auction services include lenders, servicers, and sellers such as Fannie Mae, Bank of America (NYSE: BAC), JPMorgan Chase (NYSE: JPM), Starwood (NYSE: NASDAQ), BlackRock (NYSE: BLK), Capital One (NYSE: COF), and MetLife (NYSE: MET). Ten-X reported 2019 revenue of approximately $57 million.

CoStar claims 10 million monthly visitors in April alone to what it calls the most heavily trafficked online marketplace for commercial properties and land for lease and sale in North America and Europe. It also owns Apartments.com and reported 2019 revenue of $1.4 billion.

Unfair Advantages: How Real Estate Became a Billionaire Factory

You probably know that real estate has long been the playground for the rich and well connected, and that according to recently published data it’s also been the best performing investment in modern history. And with a set of unfair advantages that are completely unheard of with other investments, it’s no surprise why.

But those barriers have come crashing down - and now it’s possible to build REAL wealth through real estate at a fraction of what it used to cost, meaning the unfair advantages are now available to individuals like you.

To get started, we’ve assembled a comprehensive guide that outlines everything you need to know about investing in real estate - and have made it available for FREE today. Simply click here to learn more and access your complimentary copy.