The Los Angeles Real Estate market has several large projects of newly built (or remodelled) condos and lofts that are coming to the market at probarbly the very worst time. Buyers are sitting on the sidelines, unsure of when the market will finally reach a bottom while lenders have made it increasingly difficult to qualify for a loan.
Several projects were completed in 2008 and still remain unsold. Even those projects where sales have occurred are experiencing difficulties because of lender's requirements - there are simply not enough units sold for the lender to approve the projects.
Developers have realized they need to take firm, drastic action to get these units sold.
One developer taking such action is Downtown Properties. They have developed the The Rowan Building, a 206-unit condo conversion situated at 5th & Spring Streets in the heart of the historic Old Bank District of downtown Los Angeles.
79 of The Rowan's lofts have been selected for immediate sale at a one day Grand Opening Auction on Sunday February 8, 2009. Units will be auctioned at prices which are as much as 45% off the original List Prices; Studio which were originally $332,000 will start at a minimum bid of $195,000; One-bedroom units which were $515,000 will have minimum bids of $295,000; and 2-Bedroom unit which was originally priced $785,000 will start at $490,000.
This auction should attract keen interest, not only from Buyers, but also from other Developers needing to off-load their own units!
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