For a story about developers auctioning off condos, the Wall Street Journal digs up the results of that recent West Ocean Two auction in Long Beach. Here's how it went down: "Thirty-three of the 39 condos sold on auction day, including a three-bedroom, 1,651-square-foot unit that went for $995,000. That was above the minimum acceptable bid of $795,000 but well below the original list price of nearly $1.5 million." But according to David Parsky, director of Citi Property Investors, a Citigroup Inc, it's too soon to call the auction a success because all the properties haven't yet closed escrow. Meanwhile, if all auctions aren't always successful, many developers and real estate experts quoted in the story believe the process is a quick way to unload numerous properties (additionally, the auctions simply bring in more foot traffic to the building). "Developers are at a point where they feel an auction will yield similar, if not better, results than waiting 18 months to have the inventory absorbed," Marty Clouser, senior VP of the auction group at Kennedy Wilson tells the WSJ.
· Condo-Minimum [WSJ]
· Long Beach's West Ocean Two Auctioning Off 39 Condos [Curbed LA]
· Another Auction: Koreatown Condos, 1/2 Off! [Curbed LA]