South End condo auction another sign of the times
The idea of buying into the South End for less than $200,000 back during the boom would have seemed unthinkable.
But in another example of how the real estate downturn is now starting to hit even the top tier neighborhoods and towns, the developers of the 1850, a loft complex in the South End, plan to put more than half their units up for auction on June 28.
And yes, the minimum bid for some units will start below $200,000, actually $175,000 to be exact.
The auction phenomenon has been sweeping the country, with developers using these one-day sales extravaganzas to unload big blocks of unsold units in new condo projects.
Ironically, the trend got its start with the auction of dozens of units at the Folio complex in downtown Boston nearly three years ago.
But after that big splash, the auction concept never caught fire here, even as developers in cities across the country latched onto the idea to cut their losses and move unsold units.
Still, a lot has happened during those years, with even the seemingly once impregnable downtown Boston luxury condo market finally seeing both prices and sales fall.
Anyway, here’s the scoop. Thirty-five of the 60 units of the 1850, a piano warehouse converted into lofts by the Cresset Group, will hit the auction block on the 28th, a Sunday.
Minimum bids range from $175,000 for units that were once listed for more than $300,000, up to just under $800,000 for the top units. The units range in size from 679 square feet to more than 1,500.
Cresset has teamed up with Wells Fargo to offer mortgages for qualified buyers with FICO scores of more than 700. The loans are 90 percent, requiring 10 percent down.
Velocity Marketing Services, a local firm that has carved out a big niche in the auction field, will oversee the one-day sale.
It will be very interesting to see how the 1850 auction goes – and whether this marketing tactic finally catches on among Boston condo developers.
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Terrible location. You are stuck between the projects on Harrison and the 93 expressway - not exactly South End.
I was surprised that the developer has sold any units so far
#1. I can just hear the arguments now that the "immune" areas are cracking. (Insert "immune" community) is holding up well, as long as you are between the areas of Maple Street and Broadway, north of Route 9 and within 2 miles of the elementary school.
While technically the South End, it is what I call the DMZ. I agree, it's a wonder that they sold any and I think some of the auction prices are still too high for that location. It's improper to use this location as an indicator for the whole South End.
#1 - Agreed. This area is hardly the South End! It could charitably be called northern South Boston, in my estimation.
I always steered my clients away from this development, regardless of its putative location. No surprise to me that it's not selling.
Owners in the TRUE South End can rest assured that their property values have remained firm throughout this so-called "recession".
That's really what used to be called South Boston. There's a big difference between that area and the area between Harrison and the Back Bay.
"Not the South End." LOL. Bet that's not what these same relitters were telling their clients as they tried to foist these properties off on clueless buyers.
It's misguided and uninformed to suggest that the location of The 1850 is not the South End. The South End is NOT just the stretch of Tremont Street where BeeHive and the other yuppie hotspots are. Yes, The 1850 is located in the least developed section of the South End, but so what? For those who have a short memory, the South End was a "dump" merely 10 yrs. ago. Now it's becoming increasingly gentrified, and there's no reason not to think that this process will not spill over into Albany Street sooner rather than later.
Given its close proximity to Downtown/Copley, this is a missed opportunity for those who don't see the bigger picture. There is a lot of under-developed land. If you build it, they will come...
I am a Realtor working with a qualified buyer. We would like to learn more about these units in order to carry out our due diligence before auction. Can you provide me with some contact info please.
Regards,
Michael (#8): Google "1850 Boston" and see first search result.
Went to their open house during open studios. The units there are just not that impressive. Very long and skinny. The sample unit - I have no idea how they did it, but they made a 800sf unit feel like it was 300sf... Plus I have a personal thing against places that put electric stoves in units in a neighborhood that has gas available... Even at 'half' the price, these places just aren't that appealing...
Why would a buyer buy at an Auction? The next step could be Foreclosure on the Community. Buyers should be very aware of what could happen next. And ReSale? What is they need to ReSale...will it be possible?
These auctions are not good for anyone....they are mandated by the "lenders" not the developers. They destroy the integrity of the developer, devalue the property and ultimately, the entire market.
All buyers should boycott these events and just say "NO". Eventually the market will absorb these properties. Bad design and bad plans will never sell, so if that is the case, turn it into a rental and make it work.
To The Bloggers on here who are claiming that this neighborhood is not the South End:
HELLO?!? Have you been living under a rock for the past 5 years? This is THE hottest neighborhood in the city: SOWA...trendy restaurants (Rocca, Banq, Red Fez), BSC gym, parks, galleries, furniture stores, police and fire stations right there...not only is this the South End, but it is the trendiest neighorhood in the South End...
This ain't your mother's South End, Darhlings...get a grip!
While it may seem like a bargain, this location is in no man's land with the Flower Market across the street and the Highway visible from the street. The area is deserted at night and risky to walk around.
I'm sure some speculators will buy them
This blogger might want to review your comment before posting it.
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