Former executives of real estate startup Ten-X are going full throttle into the commercial real estate business with the launch of a new marketplace and MLS.
Called Biproxi, the new real estate tech platform will feature commercial real estate sales and leasing listings of under $25 million and 50,000 square feet. This makes its primary client base the middle-market commercial broker while also putting Biproxi in competition with Ten-X, which features both residential and commercial real estate listings.
The founders, who include CEO Gordon Smith, Chief Operating Officer Carrington Guy, Chief Commercial Officer Yan Khamish and Managing Director Thatcher Milholland, wanted to build a centralized platform that allows users to list and market properties while also closing sales deals online.
“Three of the four founders were part of the managing team of a very large online marketplace,” Smith told Bisnow. “We have essentially taken what we’ve learned there to create Biproxi and we’re starting with a free commercial real estate listing service, which really doesn’t exist today.”
Ten-X was acquired by private equity firm Thomas H. Lee Partners for over $1 billion in 2017. Its online marketplaces include Auction.com, Ten-X Homes and Ten-X Commercial, allow individuals and investors to find, purchase and sell homes in an auction format. Bitproxi will now be going head-to-head with Ten-X Commercial for business.
Biproxi Listings, the new startup’s nationwide MLS, already features 40,000 listings from companies like Re/Max Commercial, Coldwell Banker Commercial, Sperry Commercial Global Affiliates and NAIOP. As part of its overall launch, the company also unrolled Biproxi Marketing Services — an online-only platform that lets real estate professionals buy and sell commercial properties and is currently being tested by a group of commercial brokers.
Biproxi’s listing process is free and has no subscription fees; the company also claims that its marketing platform costs 75 percent less than its lowest competitors.
The October launch was made possible by an undisclosed amount of seed funding round from various real estate and private equity investors. The specific backers involved have not been publicized, but Biproxi is planning another capital raise in the coming months.
“Middle-market deals are generally conducted offline, and the prospective buyer pool is large and diverse, which makes it difficult to identify all qualified buyers through traditional marketing and networking methods alone,” said Smith in a prepared statement. “Biproxi’s platform ensures deals are exposed to the widest possible buyer audience.”