The first long-awaited desperate developer blowout auction came to New York City last night, with units at Greenpoint's Locale hitting the block at the Downtown Brooklyn Marriott. We were there to watch the condo plan for the 267-269 Kingsland Avenue project become effective right before our very eyes -- to the live performance of "Fly Like An Eagle" and other hits -- and what a show it was! The developer's promise to sell four apartments "absolute," regardless of price, brought a standing-room-only crowd of 100+ bidders and spectators. There were five sales in the $200,000s and $300,000s (for units that were originally asking $445,000 to $599,000) before the seller put a stop to bidding, and it looked like more offers were being tendered privately after the main action ended.
Here's what sold and for how much:
1) #1B: A 984-square-foot studio, sold for $387,500, the highest price of the night.
2) #1D: A 983-square-foot 1BR, 1.5BA with private patio and yard, originally asking $550,000, sold for $367,5000.
3) #4D: A 726-square-foot 1BR, 1BA, sold for $312,500 with an unknown reserve.
4) #1A: A 908-square-foot 1BR, 1.5BA, originally asking $500,000, sold for $280,000.
5) #1C: A 908-square-foot studio, sold for $272,000.
At that point, the developer put the kibosh on the Sheldon Good & Company gaveling but invited private offers of $367,500 for fourth-floor units and $272,000 for all others. It looked like unit 3C was snapped up then, though we don't know yet whether other deals were done amid the post-auction euphoria.
Given that the auction ended right after the last promised "absolute" sale, perhaps the developer wasn't over the moon about the condos' apparent going rates, but those leaving with signed contracts looked pretty darn ecstatic. Are cheap Brooklyn condos The Secret? And, more answerably, has a price floor for Greenpoint new development condos been set?
UPDATE: Crain's reports that developer TreeTop Development was pleased with the results of the auction and stopped bidding because enough units had sold for the condo plan to be declared effective. Six bids were reportedly made on additional apartments after the end of the auction.
· On the Block: New Greenpoint Condos Heading to Auction! [Curbed]
· Locale Auction [Sheldon Good & Company]