What Happened At The Atwater Auction Doesn't Need To Stay At The Auction

Posted on 09/21/09 10:27 AM

It was a jam packed event with the usual hype and energy that these kinds of events generate. Although many people were evidently just attending out of curiosity, the bidding turned out to be more serious and competitive than most had expected. If you had anticipated picking up one of these units at or near the minimum bid, you should have considered some of the previous comps, as well as the fact that out-of-state bidders are likely to drive prices up beyond the norm. In the end 40 out of 41 units sold, generating just under $20 million in sales.

Most Units Sell For 40% Or More Above Minimum Bid

With sales moving along quite nicely at the auction, securing a good deal became more of a challenge. On average, units sold for 41% above their respective minimum bid. Essentially all of the entry-level units sold at 50% above the minimum. Still, for some the gamble paid off. Notably the larger 2 and 3 bedroom units sold at mere 20% above the minimum and 40% below original price points. Here are some of the highlights:

-Unit# 441 sold for 254k at a 31% discount over the original and 50% above the minimum bid

-Unit # 333 (south facing) sold for 307k. That translates into a 30% discount and a 54% premium over the starting point

-Unit #339, the SW corner unit sold for 424k. That’s a 33% price drop, but still a whopping 57% above the minimum bid.

-The sale on unit # 904 represented a pretty decent deal for this “J” floorplan looking out on to the river. It sold at a 32% discount and a 32% premium over the minimum bid.

-The new owner of unit# 910 also has something to write home about. The unit (with premium finishes) sold for $310/SF, down from $439/SF.

Making The Most Of The Auction Results

Most likely this will not remain the only auction, although I don’t expect the team to put on another show before the end of the year. More interestingly the auction creates a unique dynamic for other developments (in the area) that are struggling to sell. After all, things aren’t that different at the neighboring John Ross, where roughly 45% off all units remain unsold and several more re-sales are waiting to change hands. Faced with the auction results at the Atwater, many other developers in town will be hard pressed not to match these prices as best as they can.

Interested in playing this game? Drop me a note.