Well, both the Brix and Gallery Auctions are over…phew! It was a great experience attending these events and for the developer who sold and the buyer who purchased, I would say the verdict is still out on who “won”. For the buyers it was between 30-32% percent discounts. For the Seller, it will be the percentage of value above the minimum bid. For us, who didn’t purchase it will be interesting to see if the new cost per square foot sticks.
At Schnitzer Northwest behind closed doors, they are probably discussing the results as you read this. We will never really know how they felt after the sales. I suppose we may get one of them on record, but for now, its all speculation. I spoke with a respected colleague of mine after the event and he felt that it was without question a “favorable” situation for the buyer. He said “Schnitzer won’t feel great about the results”. With that being said, I believed they have accomplished what they set out to do:
1. Unload a portion of the inventory
2. Get closer to meeting FHA requirements
For the majority of the outsiders, one might not realize that there is still 35 units left at Brix and a large number at Gallery as well. The prices have been set. Only time will tell if the current pricing will meet the expectation of the rest of the buying pool.
I can attest to the reactions of the buyers. The room was full and the bidding was active. I think buyers saw this as a great opportunity to get back at what they felt were overpriced units to begin with. Over the next few weeks, I’m sure we will hear more from satisfied buyers.
Please feel free to call or e-mail with questions.