The Seattle Condo Blog | Seattle Condos and Lofts

The take away from the Brix and Gallery Condo auctions, held on September 27, 2009, is that there is a strong demand for condo ownership and condo deals. Between the two auctions there were at least 500+ people in attendance, though not all were bidders. The bidding was very active and virtually every auction lot was competitive.

I think it’s fair to say the results exceeded people’s expectations (selling prices were higher than anticipated). The winning bids at Brix averaged $410 per square foot and sold for approximately 70% of the last offer prices (30% discount). The results at Gallery were equally strong, averaging $439 per square foot and selling for about 68% of the last offer prices (32% discount). In comparison, the last auction at Lumen averaged $347 per square foot and sold for only 62% of the last offer prices (38% discount).

Upper-level one-bedroom view units at Gallery were going for as much as $550 per square foot, while lower-level alley facing units averaged about $350 per square foot. At Brix, the one-bedroom flats commanded higher per square foot prices, generally above $400, while the multi-level lofts and townhomes were in the high-$300′s.

Per Schnitzer West, the auctions generated nearly $30 million in sales. In all, there were over 420 bidders who attended the two auction events, with more than 3,300 total site tours in the weeks leading up to the auction.

Click below for PDF:

Brix Auction Results

Gallery Auction Results

View available Brix and Gallery condos for sale.

From other blogs:
Urbnlivn.com: Brix & Gallery Auction Wrap Up
CHS Capitol Hill Seattle: Did The Brix and Gallery Auction Buyers Get a Good Deal?
Courtney Cooper: Gallery Auction Results: Belltown Real Estate Unveiled
Urban|IMG: The Auction Results

Developer Schnitzer West, who earlier this month converted their Equinox condo development in Eastlake to apartments have just announced they are auctioning the remaining units in their two other Seattle properties – The Gallery Condominium in Belltown and Brix Condominium on Capitol Hill.

The auctions for both properties will be held on Sunday, September 27th at the Grand Hyatt Seattle (721 Pine Street). Brix goes first starting at 1:00 PM with Gallery starting later at 6:00 PM. The auctions will be conducted by Accelerated Marketing Partners, who previously handled the auction for the 1707 Boylston condo on Capitol Hill.

There are 40 units available at Brix with the minimum bid starting at $165,000 for an open one bedroom. The Gallery has 43 units available with the minimum starting bid beginning from $195,000. Schnitzer clarified that there are more units available but are only offering 83 through the auction process. Presently, their focus is on the 83 auction units so no home will be available for purchase through normal channels until after the auction concludes.

According to their press release:

The auctions will be conducted mid stream of the properties’ sales campaigns, and are not intended to “liquidate” the remaining inventory, but rather will establish market pricing for the projects.

For more information including the full list of homes available, registration and deposit requirements, please click on the following:

Gallery Condo Auction

Brix Condo Auction

Both auctions have a buyer/agent registration policy. Therefore, if you want to be represented by your own buyer’s agent, then your agent must accompany you on your initial visit to the auction center at both Brix and Gallery. If a buyer visits the auction office without their agent, they may be denied their own representation.

The developer’s other condominium project is The Bravern in Bellevue.

Lumen officially announced it will auction the remaining 19 condominium homes on Saturday, July 11, 2009 at the Seattle Grand Hyatt Hotel.

The one-bedroom, one-bath homes previously priced over $460,000 will carry minimum selling prices at auction from only $175,000, or 40% of original pricing. Two-bedroom homes carry minimum bids starting at only $275,000. Auction pricing averages nearly 50% below original pricing. One 1,631 square-foot loft-style home will open with a minimum bid of only $395,000, more than $500,000 below original price.

Buyers will need to be be pre-registered and pre-qualified with the seller’s designated lender, Wells Fargo Home Mortgage, prior to bidding. They also should inspect the specific property they wish to bid on prior to the auction.

To help those new to auction buying, the auctioneer, TeamBuilder Auction Group, will host a pre-auction seminar for interested buyers on Wednesday, July 1st at 7 p.m. At that time potential buyers can pre-register, learn about the auction process, review the terms and conditions of sale, and participate in a mock-auction to experience first-hand how this type of real estate transaction works.

To learn more about LUMEN and tour the homes available for sale at this event, please visit the on-site information office located at 501 Roy Street, Seattle, 98109. The onsite office is open seven days a week from 10 a.m. to 6 p.m

More information about the auction along with the units available with the minimum starting bid and last offered price are available at www.LumenCondoAuction.com.

View available Lumen condos for sale.

Update 3/23/09: KOMO TV news story on the auction.

Following on the success of The Press condo auction in December, the Queen Anne High School condo project will be auctioning the developer’s remaining 12 units. Bids start at $145,000.

The auction is scheduled for 1:00 PM on Sunday, March 22, 2009 at Grand Hyatt in downtown Seattle. The auction is being conducted by Kennedy Wilson, www.QueenAnneHighAuction.com.

Like the Press’ auction, a “how-to” seminar with a mock auction is being held in advance. The seminar is scheduled for Sunday, March 15 at 1 PM at the auction information office at Queen Anne High School (201 Galer – enter from 3rd Avenue). Attendance at the seminar isn’t required but if you’re new to auctions, it’s well worth going to.

Of the 12 homes available, 11 are located in the West Wing and the Industrial Arts Building. The only unit available in the original high school building is a penthouse. The homes are available for preview from 10 AM to 5 PM daily. Floor plates of the complex.

• One studio is available with a minimum bid of $145,000 that had been listed at $254,950.
• Six two-bedrooms that begin from $245,000, they were previously listed between $474,950 and $519,950.
• Four townhomes starting at $325,000, they were previously listed from $579,950 to $599,950.
• The penthouse, a 1,432 square foot one-bedroom + den starts at $650,000 and was previously listed at $999,950.

Things to know about the auction:

• Registration is required in order to attend and bid on auction day. Bidders can register in-person at the auction office or they can mail or fax the form. Registration is due by 5:00 PM on Thursday, March 19, 2009.
• The minimum selling price (bid) is the published reserve price; there are no hidden reserves or buyer premiums.
• Buyers must be pre-qualified through Wells Fargo prior to the auction. However, buyers may use any lender of their choice and will need to provide a pre-qualification letter from their lender.
• A $2,500 cashiers check deposit is required for each home a buyer has been approved to purchase. The deposit is required to bid, and for winning bidders, it’ll be applied towards the down payment.
• Immediately following the auction, the remainder of the down payment is due (3% for one home, 5% for more than one). The down payment can be made by personal check.
• Purchasers using the preferred lender, Wells Fargo, are eligible for a $2,500 credit that can be applied towards closing costs.
• All sales are slated to close on or before Wednesday, April 22nd (30 days from the auction). In some cases, the Seller may grant an extension though there’s additional fee assessed.
• Buyers may have their own buyer agent representation. There is no additional cost incurred for buyer representation.

Detailed information, list of homes available, registration form and auction terms & conditions are available for download at www.QueenAnneHighAuction.com (note: you’ll need to complete the sign-in form).

UPDATE 3/4/09: The single owner / single property auctions appear to have busted with lack of interest. There were no registered bidders for either auction; the Tribeca auction is scheduled for tomorrow is being canceled. Single property auctions may work in cases where there is a value incentive, a low minimum starting/reserve price relative to the list/market price. In these two cases, the minimum bid was approximately 10% below the list.

Post revised 2/24/09:

For most of us in Seattle non-foreclosure auctions have been a rarity. However, the current market place has sellers looking at real estate auctions as an alternative means to sell their property. In the past six months two Seattle condominium projects (The Press & Seventeen07) utilized a public auction to sell off their remaining units. Both the sellers and buyers benefited — the sellers sold off their inventory (public records show most closed) and buyers were able to purchase well-below list.

It worked so well for condo projects that now individual unit owners are giving it a try. I received information on auctions at Ballard’s Canal Station and the Tribeca in Lower Queen Anne. The auctions are held by individual sellers and are being facilitated by the CE Group.

Canal Station #304 is an fairly large 873 square foot 1-bedroom. This single property auction is scheduled for Tuesday, March 3rd at 5:30 p.m.. The minimum bid starts at $279,000.

Tribeca #201 is a 1,116 square foot 2-bedroom, 2-bath unit with a large deck and 2 parking spaces. The condo is presently listed at $538,950 with an auction starting price of $465,000. The Tribeca auction is scheduled for Thursday, March 5th at 5:30 PM.

The location for both auctions are still to be determined. More detailed information about the auctions can be found at CE Group Auctions. The process is similar to the last two project auctions.

I don’t know if single property / individual owner auctions will take off in the Seattle area, but if they do, there are some advantages to them. For sellers – the potential to sell the property quickly and eliminate carrying costs, reduce the hassle of on-going showings & open houses, remove sellers from the negotiating process and sell the property at market value. For buyers – the price is set by the buyer and eliminates negotiations, know they are competing on same terms with other buyers, have the ability to review documentation beforehand and reduces the closing time frame.

Disclaimer: CE Group and TSCB are independent entities affiliated with John L. Scott Seattle Center. TSCB has no vested interest in this auction.

According to the Daily Journal or Commerce, the Domaine Condominium development on Aurora Avenue is being offered for auction (Trustee’s Sale) on February 6, 2009 to the highest and best bidder. Intracorp, apparently, was unable to unload the project as apartments as it did with Expo62.

The article states a limited liability company affiliated with Intracorp is in default on a $22.51 million construction loan with KeyBank. They are also behind on a $11.6 million mezzanine loan through Residential Funding Company (RFC), plus interest and other fees. RFC is foreclosing on all its collateral for the loan.

Intracorp has been hit hard this year with dismal results of its downtown condominium strategy (Expo62, the Parc, Domaine and 1915 2nd Avenue) and, reportedly, reduced its staff.

The auction will take place at 9:30 AM at the King County Administration Building on February 6th, 2009.

Update 12/14/08: The SLOG’s write up of the auction. Units sold approximately 80% of the list price, about 30% above the minimum bid price.

The Press, a condo conversion on Capitol Hill, will be auctioning off 18 remaining units on Saturday, December 13th.

The Press development includes two buildings, a converted apartment building at the corner of Belmont and Pine St and the adjacent new construction addition. Minimum bids for one-bedrooms begin at $185,000 (last asking price ranged from $334,950 – $364,950) while the minimum bids for the two-bedroom range from $210,000 to $255,000 (last asking price ranged from $364,950 – $467,450).

The presentation center is open daily between 10 am and 5 pm at 1610 Belmont Avenue.

The auction will be held at the Grand Hyatt Seattle at 721 Pine Street. Interested bidders should review the auction website thoroughly as an auction registration form and deposit are required.

www.PressCondos.com/auction.html

Recent news articles:
No Parking Anytime: Condos being put up for bids at about half price – Seattle PI 12/2/08
Press release – Seattle PI 11/18/08

Seventeen07, a condominium conversion at 1707 Boylson Ave on Capitol Hill, auctioned off its unsold units this weekend. According to the auction website, 17 of the 36 units were available for auction with bids starting at $95,000 for studios, $195,000 for one-bedrooms and $215,000 for two-bedrooms.

The Daily Journal of Commerce reported today that the auction brought in $3 millions and noted that “all 14 units” were sold. Apparently, the number of units available for auction had been reduced. At 14 units sold, that averages out to $214,285 per unit. No info on individual unit sale prices were provided.

Seventeen07, a recent conversion at 1707 Boylston Ave is auctioning off 17 units with bids starting from $95,000 for studios, $195,000 for one-bedrooms and $215,000 for the two-bedroom units.

The auction, which is being conducted by Accelerated Marketing Partners, is scheduled for 2:00 PM on Sunday, October 19th at Hotel Monaco, located at 1101 4th Avenue. Bidders are encouraged to arrive between 1:00 and 1:30 pm to pick-up bid packets, and will need to be pre-qualified by either Wells Fargo or Countrywide (see auction site for more info).

Seventeen07 was converted earlier this year and has 36 units (studio, one- and two-bedrooms). The auction notice states that 17 homes will be available, though only six closed sales and two pending sales have been recorded in the NWMLS. It is possible the remaining 11 units were sold but never entered into the NWMLS system, or being held for a future sale. At least one unit, which closed this month, is available for rent.

For more information, visit www.auction1707.com.

Once touted by its developer as the centerpiece to creating a Kirkland styled neighborhood on the Kitsap Peninsula, The 400, is now heading to the auction block. According the the Kitsap Sun, starting bids will be nearly 60% below the list price. A 577 sq ft one-bedroom unit listed at $259,000 will be offered at a $109,000 starting bid, while a 1,729 sq ft unit listed at $919,000 will start at just $409,000 $500,000.

Twenty-eight units will be available for auction on April 20th at the Kitsap Conference Center. More info on the auction is available on the REDC website.

Luckily for the original developer, he sold the project to a California firm before the project was built. Apparently, he’s still sold on Bremerton’s condo market as the Sun reported that he “plans to build another condominium development on the waterfront, at 105 units, called The 600.”