After the embarrassing auction of 54 condos of the Riverdale’s Solaria in the Bronx last November, Joe Korff and his ARC Development are trying a tactic they have dubbed “Spring Bid and Buy.”
Huh? If a double meaning is meant, the grammar is elusive. And if Korff thinks the idea will work better than simply lowering prices, he’s whistling Dixie.
More than half the building reportedly still is empty. A total of 35 apartments in the sleek glass tower on Henry Hudson Parkway remain on the market, according to the Riverdale Press. Only 10 of the development’s 64 units had found buyers prior to the auction.
Poor Mr. Korff seems to think that an inconveniently situated development ought to be priced competitively with other New York City projects. As he tells the newspaper:
“I won’t do a stupid deal, and I won’t do a deal that’s not market.”
As described by the publication, visitors to the sales office who possess a note from a bank backing their credit worthiness can make an offer to the developer. If the offer is lower than what Arc is looking for, or if the buyer is unsure, or if multiple buyers show interest, the “bid and buy” program goes into effect, Korff explains.
“When we have enough activity on a certain home, usually three bidders, then I will get involved and we’ll make a decision,” Korff says. In a “bid and buy” transaction, the highest of the three — or more — offers could – could, Riverdale Press reports – win the apartment.
What makes the process unusual, Korff says, is the requirement for bidders to demonstrate bank support and the developer’s provision of market data to prospective buyers. He adds that ARC has conducted extensive research on the Big Apple’s market, and the developer maintains that he won’t agree to a price unless it is consistent with current data in the city.
The idea is to attract “more educated consumers” and fewer people “just throwing a number out there.”
Neighboring Assemblyman Jeffrey Dinowitz express hope for the promotion but thinks he has a better idea:
“I have a perfect solution to sell more apartments: Lower the prices.”
Don’t even think about checking out the Solaria’s Web site for available properties. You’ll find only 10 of them listed.
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022