What is a PSP and what information does it contain?
A PSP is a Property Specific Package. They are site specific and are used as the bidder's key to coming to a conclusive and successful bid. The PSP's contain some or all of the following information:
- Executive Summary
- Area Maps
- Environmental Reports
- Zoning Information
- Demographic Information
- Prior years financial statements
- Bidding Instructions, a Bid Envelope and the Purchase and Sale Agreement
What is the asking price and/or minimum bid for these sites?
There are no asking prices or minimum bids on these properties, unless otherwise specified. All stores are offered in the sealed bid sale format.
How do I estimate the property value and come up with a purchase price?
Potential buyers are required to purchase a PSP in order to place a bid. The information contained in the PSP should be read in full and then used as the basis for your bid price. Further due diligence done by the potential buyers is allowed if he/she feels it to be necessary. It is also recommended that you visit the site prior to placing a bid. However, when viewing sites, bidders should under no circumstance ask questions of store managers or employees. Bidders violating this requirement may be disqualified from bidding.
What is a bid deposit and how much is it?
A bid deposit is a "good faith" (earnest money) deposit, made in the form of a cashier's or certified check that a buyer is required to submit with a bid. It is generally equivalent to 2.5% of the bid amount, unless otherwise specified. For example, if one were to place a bid of $100,000.00 the bid deposit would be equal to $2,500.00. Bids that are submitted without a bid deposit are deemed nonconforming and will not be considered.
What forms of payment do you accept for the earnest money/bid deposit?
Earnest money is to be sent in the form of either a CASHIER'S or CERTIFIED CHECK made payable to NRC Realty & Capital Advisors, LLC. We do not accept any cash, personal or business checks.
How do I send in my bid?
All bids should include a signed copy of the Purchase and Sale Agreement and your bid deposit and should be sent in the bid envelope provided in the PSP to the following address:
NRC Realty & Capital Advisors, LLC.
445 W Erie St, Suite 210
Chicago, IL 60654
All bids should be sent via a certified courier service such as Federal Express, which guarantees a delivery time and offers tracking capabilities. All bids MUST be here by noon on the bid deadline day.
Do I need to get a lender before I bid?
No. While you are required to secure your own financing if you are awarded the bid, you are not required to have a lender prior to placing your bid.
What happens to my bid once it is received?
As stated above, bids/bid deposits are irrevocable for 14 days following the bid deadline. At the end of this time, bidders are notified of their bid status. If their bid was not accepted, the earnest money checks are returned via FedEx Second Day Delivery.
When will I know if my bid has been accepted or not?
There is a 14-day period after the bid deadline in which your bid deposit and offering are irrevocable. The seller uses this time to review bids and determine which bids will be accepted. NRC will notify bidders upon the bid determinations.
If my bid is not successful, when do I receive my deposit back?
As stated above, bids/Bid Deposits are irrevocable for 14 days after the Bid Deadline. At the end of this time frame bidders are contacted and notified of their bid status. If their bid was not accepted, their earnest money checks are returned to them via Airborne Second Day Delivery.
What is done with my earnest money deposit if my bid is accepted?
NRC deposits all earnest money into a non-interest bearing account. Funds are held in this account until the contract has been executed and a closing date has been scheduled. Funds are released to escrow 48 hours prior to closing.
What is a Back-Up bidder?
If the accepted bidder is to default for any reason, the "Back-up bidder" is awarded the site. NRC holds the Back-up bidder's bid deposit until it is certain the accepted bidder will or will not close. If the accepted bidder defaults, the back-up bidder is notified of his/her acceptance, the back-up bidder's escrow money is deposited into a non-interest bearing account and the closing process begins.
Are there different types of bids?
YES! There are multiple ways you can bid.
• REGULAR SINGLE BID: This is when a potential buyer submits a bid for one store only. He/she encloses a signed Purchase and Sale Agreement and a 2.5% Bid Deposit based on the purchase price of the store they are bidding on.
• MULTIPLE BID: This type of bid is intended for bidders who want to purchase MORE THAN one store. In this instance you will send signed Purchase and Sale Agreements for EACH properties, as well as an individual 2.5% bid deposit for EACH bid.
• PREFERENCE BID: This type of bid is intended for bidders who want to purchase ONE store only, but have an interest in several stores. In this case, you would send signed Purchase and Sale Agreements for each property. PLEASE INCLUDE A LETTER WITH YOUR BIDS, WHICH STATES WHICH STORE IS YOUR FIRST CHOICE, WHICH STORE IS YOUR SECOND CHOICE, ETC. (YOUR PREFERENCE) Please calculate your bid deposit as follows: 2.5% times the highest single purchase price being submitted. Note: You may only rank stores in order of preference SINGLY. You cannot do group preference bids.
Example: You want to purchase one of three stores. Your bid on site #1 is $100,000, your bid on Site #2 is $200,000 and your bid on Site #3 is $300,000. Therefore, your Bid Deposit would be 2.5% of $300,000 and would equal $7,500.
• ALL OR NOTHING BID: This bid is for bidders who would like to purchase a group of stores. The process for placing an all or nothing bid would be to fill out all purchase and sale agreements for the stores contained in the bid and then send in a bid deposit in the amount of 2.5% of the TOTAL BID PRICE. You must put individual prices for the stores on each of the purchase and sale agreements to create a grand total.
I have a question about getting a refund on my PSP order. What do I do?
Fax in a letter stating your request and a customer service representative will contact you. Our fax number is 312.278.6900. Please be sure to include your name, phone number and address on the letter.
What is the difference between Fee and Lease?
“Fee” means that what is being sold is the “Fee Simple Interest” in a property, in other words it is being sold with real estate. This means that the purchaser buys both the land, the improvements on the land—store, tanks, pumps, etc., except where otherwise specified--and the business, if there is an operating business. “Lease” means that what is for sale is the “Leasehold Interest” in the business. This means that the purchaser is buying the business only. It is not being purchased indefinitely, but for a period of time set by the terms of the lease.