Boston condo auction a 'complete failure'
From Curbed.com blog
By Curbed.com, Monday, October 19, 2009.
Over the weekend, developer Vornado Realty Trust auctioned off 10 luxury condos in The Bryant, a new 50-unit brick building on the border of Boston's Back Bay and South End neighborhoods. Why do we care? Because developers holding on to unsold "shadow inventory" in New York City have been quietly keeping an eye on this auction.
Vornado's hypothesis: that luxury condos can and will maintain their value (value according to the developers, that is) at auction.
So how did it turn out? The Boston Herald reports that most of the units sold for around $1.3 million after being listed for $1.7 million to $2.2 million. Doesn't sound like the end of the world, but one broker called it a "complete failure for the developer," adding, "The units averaged $671 per square foot with parking. That's not good news for Vornado. Buyers are paying $700 per square foot in the Back Bay and Beacon Hill for walk-ups without parking."
Ouch, does this mean auctions are out as New York City's next big sales gimmick? Greenpoint, it's up to you, little buddy.
Reposted with permission from Curbed.com. Click here to view original post.
Copyright (c) 2009 Curbed.com LLC
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Submitted by Anthony Longo on October 19, 2009 - 12:19pm.
Wow The Bryant really making national headlines today and rumors that it was a failure - I would disagree and think it went off quite well. Approx 25% price correction on units which "needed it".
I attended the auction and have complied a detailed report of every unit sale: Download here -
http://www.bostoncondoloft.com/bryant-back-bay-condo-auction-results/
Anthony Longo
Founder & CEO, CondoDomain.com
Submitted by Mike Russo on October 19, 2009 - 7:20pm.
I think the Realtor that commented on this being a failure is delusional. 24 - 25% off of list price is a failure?
Most homeowners today would probably take a deal that was only 24% off of asking even if their Realtor thinks that it is priced at market. Never mind the fact that these are developers sitting on quite a bit of inventory. And guess what??? I am sure the developer has to deal with a bank that is all over them to pay off their loans.
Most Realtors today need to get to grips with reality.
Submitted by Alexis Eldorrado on October 20, 2009 - 2:56pm.
When looking at the average price reduction of all of the units sold at the auction, and seeing 29%, I agree with Mike Russo above that this was a successful auction.
The developer was able to move 10 units in one day, all high-end, in the toughest real estate market since the Great Depression.
Even though I am a Chicago real estate broker, I have spent many a New Year's Eve at Boston's First Night and have come to love Boston, especially the quaint Back Bay neighborhood.
Even if prices still fall, it is a great time to buy real estate. When the market does bottom up, the rise will come again almost instantly, and like the stock market, you would need a gift of prophecy, to determine exactly when that would be.
Alexis Eldorrado
Managing Broker
Eldorrado Chicago Real Estate LLC
150 N. Michigan Avenue, Suite 2800
Chicago, IL 60601
773-588-7777
Alexis@Eldorrado.com
www.Eldorrado.com
Submitted by Fannie Ramirez on April 13, 2011 - 1:51pm.
That's known that cash can make people free. But what to do when one has no money? The one way only is to get the personal loans or just term loan.