auction of Bklyn condos, starting bid: $150k

I wouldn't buy in Greenpoint, there is a cancer cluster there because of Newtown Creek. But a lot of people don't care about that. This Crain's story says luxe studios that were originally tagged at $450k will be auctioned off with starting bid at $150k. http://www.crainsnewyork.com/article/20091013/FREE/910139992 First condo auction looms in Brooklyn By Amanda Fung Published: October 13, 2009 -... [more]

I wouldn't buy in Greenpoint, there is a cancer cluster there because of Newtown Creek. But a lot of people don't care about that. This Crain's story says luxe studios that were originally tagged at $450k will be auctioned off with starting bid at $150k. http://www.crainsnewyork.com/article/20091013/FREE/910139992 First condo auction looms in Brooklyn By Amanda Fung Published: October 13, 2009 - 2:17 pm In another sign of distress in the residential real estate market, condominium auctions are coming to Brooklyn. All 16 units at the new luxury development The Locale will be put on the auction block next month announced real estate auction firm Sheldon Good & Company on Tuesday. Project developer TreeTop Development began marketing the units, which range from 600 square feet to 1,000 square feet, in Greenpoint last January. But the market downturn impacted sales, said David Maundrell, president of brokerage Aptsandlofts.com, which is working with Sheldon Good on the Nov. 11 auction. Starting bids for apartments will be $150,000—a discount of as much as 75% from original prices. Units were originally asking from $445,000 to $599,000. Aside from the typical foreclosure auctions, this auction is seen as the first of its kind in Brooklyn. “They wanted to go the auction route, and they wanted apartments to move a lot quicker,” Mr. Maundrell said. “The developer has financing obligations. They have to get it sold.” Interested bidders will have an opportunity to preview the four-story building located at 267-269 Kingsland Ave. on seven specific dates throughout this month and next. The first showing is this Sunday. The auction will take place at the New York Marriott at the Brooklyn Bridge. “By accelerating the sale of inventory through an auction marketing program, we are able to reduce the carrying costs associated with a longer conventional sales process, and pass those savings directly to the buyers,” said Adam Mermelstein, general partner at TreeTop, in a statement. Brooklyn condo sales results for the third quarter are expected to be released later this week, but during the second quarter sales were down 29.7%, from the same period in 2008. Median sales prices fell 16% to $441,090 in the second quarter. “Over the past year and a half we have had to reinvent how new developments are marketed,” Mr. Maundrell said. “If you want to aggressively attack the market, you must give buyers what they are looking for.” TreeTop selected Sheldon Good because of its previous relationship, where the company successfully auctioned off some of its other condo projects in New Jersey, Mr. Maundrell said. Brokers say developers decide to take the auction route in hopes that bidders will raise the sale price up to what they originally wanted. However, most of the time, those lofty goals are not achieved. [less]