It was all over by 5:30. In 80 minutes, Accredited Marketing Partners sold 40 of the 41 Atwater Place South Waterfront condos on the auction block to a standing room only crowd. I clocked the shortest auction at 31 seconds. The longest was 160 seconds. They move through a property, from brief description to “sold to bidder number [XXX]”, on average every two minutes!
The only unit that did not receive a bid was the penthouse. First listed for $1,300,000 it did not garner the $899,000 minimum bid. It was not the most expensive property available. The previously offered at $1,539,000 unit sold for $897,000 (58% off asking and 128% of its minimum bid). At the lower end, four units sold between $240,000 and $242,000 that all had minimums of $169,000.
The luxury condo auction featured property previously valued at$29,076,125. It grossed $18,821,000 (66%) or $235,000 a second for 80 minutes. My tracking of final selling prices may have been off slightly on one or two of the properties.
What were the expectations? At September 13th’s REDC Auction property sold for an average of 44% of their previously valued prices so yesterday’s average was considerably higher though for the most part, the properties on offer were very different.
Will we see more auctions like this in Portland real estate market or in the building itself? I would not be surprised to see another auction like this in either the South Waterfront or Pearl District. The ability for a developer to rapidly raise cash has to be very appealing. The downside is that a certain percentage of units must remain owner occupied in order to be financed down the road and there is a clear monetary hit to the bottom line (though some may be better than none). I did not see any occupancy requirements in the terms and conditions for this auction. If they can keep occupancy levels reasonable, it would not be surprising to see another Atwater Place auction. Previous reports stated that even if all 4o units close escrow the building will still be less than half sold.