Please see today’s update on the auction.
Some 300 individuals showed up for the auction of 54 units at Riverdale’s troubled Solaria condominium for four hours of bidding today.
Although the results failed to impress either me or apparently the roughly 10 percent who were left by the end the auction at a mid-Manhattan hotel, people from the auction company, Real Estate Disposition Corp. (REDC), said they were pleased.
After all, they contended, the sponsor of the luxury building was able to unload 54 units in one fell swoop at prices they said were within 5-10 percent of the retail market for the area. If true, that tells you that the units were mind-numbingly overpriced, though that’s hardly shocking news.
I’ve had to perform an inordinately quick calculation – which I will do again, adding substantially more analysis in a post tomorrow morning – so I may be off a bit. But here are the numbers:
The total obtained for all 54 was $38,656,062. The number of square feet sold was 90,797. The cost per square foot comes to $426, and that’s low, low, low in my estimation.
The asking price of each of 45 of the units on the block exceeded $1 million, one sign of Joseph Korff’s (the developer) disconnection from market reality. Of the 45, I noted only four that topped $1 million.
Moreover, it was not disclosed how many of the 54 condos fell below the developer’s reserve prices. But surely, he won’t let all of them go for the bid amounts, which seemed to average at least 35-40 percent below the list prices. I hope to have more on that as well if, and when, the information, is released or I can complete the calculations.
Tomorrow, I’ll verify my numbers, include many more and provide photos of the auction scene.
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022