In the event you want to see the official press release from Paramount Realty USA on yesterday’s auction of six condos at the building called 127m, at 127 Madison Ave. in Manhattan, I figured I’d make available the first of nearly two and a half pages of the eight-page press release issued by its public relations firm (the remainder being even more fluff).
But first, I’d like to point out that I’m always tempted to say an auction can be the best determinant of market value. Unfortunately, there are so many anomalies to such sales–e.g. auction fever, number of bidders, terms–that I have my doubts.
One example of a different sort of anomaly at the m127 auction was the winning bid for the first of the two units yet to be sold.
Although the otherwise identical sixth-floor condo went for $1.234 million (including buyer’s premium), the fifth-floor unit was hammered down for more money: $1.244 million. Then, the last apartment reverted to the pattern established by the three previously sold units on higher floors, which went for progressively lower prices; the winning bid was $1.229 million.
Now, for the press release, reproduced verbatim:
First Developer Auction of A Manhattan Condominium
In Almost 20 Years Draws Big Turnout
All Condos At m127 Are Sold
New York City, June 27, 2010… The first developer auction of a Manhattan condominium in almost twenty years was a success with over 400 in attendance according to the developer of the Madison Square North luxury m127 condominium who sold six out of six residences auctioned on Sunday at the Roosevelt Hotel at solid prices set by today’s market.
“We think this is a real solid outcome for the buyers and the innovative approach gave us an opportunity for some recovery,” said Kyle Ransford of Cardinal Investments, the building’s developer who was more than pleased with the Sunday’s well-attended auction. “We thank SHoP Architects for the incredible building that we created in partnership with them. We felt Paramount had flawless execution of the auction. Their company has a bright future.”
Paramount Realty USA, the company hired by Cardinal Investments to run the auction, announced Sunday that five of the two-bedroom, 2-bath apartments, starting at 1,550 sq. feet each, sold for prices ranging from $1.23 million to $1.42 million. The developer had agreed to sell them to the highest bidder without reserve at Sunday’s auction. Suggested opening bids started at $599,000. The original price of the units was listed as high as $1.9 million.
The 2,255 s/f three-bedroom duplex penthouse, which the developer offered with reserve, sold for just over $2-million, representing approximately $910 per square foot. It was previously priced as high as $3.4 million. The suggested opening bid for the penthouse was $1,199,000.
“Sunday’s results are proof that auctions represent a smart way to market and sell real estate. The trend will continue to grow here in Manhattan and elsewhere, ” said Misha Haghani, one of the two principals at Paramount Realty USA, the New York City-based real estate auction company hired by Cardinal to market and sell the remaining six units at the m127 development, located on 127 Madison Avenue between 30th and 31st Street. “ It is clear that the Manhattan community embraced this innovative approach.”
Over the last five weeks Paramount Realty USA held several weekend and weekday open houses at the property which were very well attended by interested buyers.
“We expected a full room on the day of the auction and we got it,” added Scott Burman, Paramount Realty USA’s other principal. “Our buyers are pleased with the prices which were set by today’s market.
“The transparent and open nature of the auction process provided pricing clarity to buyers by showing what others were willing to pay,” added Burman. “This has been a very exciting opportunity for both the buyers and the seller.”
Auctions have grown in popularity as an effective marketing and sales strategy in other parts of the country. Auctions were held last year in Riverdale, Queens and Jersey City, but not in Manhattan, according to Haghani.
The cutting-edge m127 building was designed by award-winning SHoP Architects, known worldwide for their eye-catching projects that include the Porter House Condominium development in
Manhattan’s Meatpacking District, the Barclays Center at Atlantic Yards, the redesign of New York City’s Fashion Institute of Technology and Google’s first-ever ground-up structure, among many notable projects. The m127 building has a total of nine condominium units. Three were previously sold by the developers before they hired Paramount Realty USA to conduct the auction.
For my detailed account of the auction, please refer to yesterday’s post.