Terms of condo auction at m127 are changed

Purchasers who forked over $30 for a bidding package learned minutes ago that the developers of the building at 127 Madison Avenue no longer face foreclosure.

According to an announcement by Paramount Realty, which is conducting the auction, “as of Friday, June 25, 2010, Bank of Smithtown has been satisfied in full.”  The statement continues:

The Sponsor wants to assure you that they can and will close with every buyer at today’s auction.

Referring to today’s lending environment, the announcement said further that the seller will grant a 30-day extension to the original 30-day closing date provided that the purchaser increases the downpayment by 5 percent with seven days’ notice. The sales must be all cash.

In addition, all five of the condos being offered for sale without reserve will be displayed on a board as “available units.”  The successful bidder of the first round will win the right to select his or her unit of choice, followed by the winner of the second round and so on.

The high bidder of each round is limited to purchasing no more than two units per round.

These eleventh-hour changes are odd, making me wonder just what gives.  Unfortunately, you’ll have to decide for yourself if you are planning to attend the auction and bid.

Subscribe by Email

Share This Post

Malcolm Carter
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022

M: 347-886-0248
F: 347-438-3201

Malcolm@ServiceYouCanTrust.com
Web site

Interest heats up for absolute auction of condos

Flickr photo by Capture Queen.

Although I have been writing about real estate auctions for some time, the interest that I have observed in the selling of six condos at 127 Madison Avenue in Manhattan this coming Sunday at the Roosevelt Hotel has been intense.

Hundreds of readers have looked at my posts on the auction, an unprecedented four readers have called me for advice on the sale, and two asked me to represent them at the auction (before I explained to them the hazards that they faced if their bids were accepted).

m127 auction has 13 secrets you need to know

It turns out that there may well be plenty you haven’t discovered about the absolute auction of five unsold condos plus the penthouse (subject to the seller’s confirmation) at 127 Madison Avenue, dubbed m127.

One thing the developer hasn’t volunteered in connection with the sale on June 27 at the Roosevelt Hotel is that the company, Cardinal Investments, is facing foreclosure on the building.  A foreclosure motion filed by the Bank of Smithtown is due for a court hearing two days before the auction, according to an attorney quoted by Josh Barbanel in the Wall Street Journal.

Alan C. Polacek, an attorney for the bank, which is based on Long Island, told Barbanel that a court-appointed referee recently put the debt owed by the developer at nearly $9 million.

The newly revealed information – together with an amendment to the developer’s offering plan, financial statements and the purchase contract – suggests a potentially confusing, even financially hazardous, situation for any winning bidders.

Condos slated for auction in Manhattan, Brooklyn

On Wednesday, a two-bedroom unit in this Canarsie condominium goes on the block. As for the Manhattan units, June 27.

A foreclosed 1,063-sf apartment that has two bedrooms and one bath in the 1989 Brook Club Condo, which has a pool, is to be auctioned on Wednesday.  At 1229 E. 80th St., unit 180 will go on the block with an opening bid of $50,000.

Monthly fees of $185 include  common area maintenance and insurance, exterior maintenance and insurance, lawn care, snow removal, trash and water.

An outfit called Williams & Williams is conducting the auction at 4:30 p.m. on May 26 at 127 Craig Ave., Freeport, which is a four-bedroom house that also will be for sale that day.  You can bid online, too.

Inspection of the Canarsie property is by appointment only.  Just call 718-998-1700 x200.

You won’t have to travel as far as Long Island to bid in person for the auction of five two-bedroom, two-bath units plus a three-bedroom penthouse that have remained unsold since 127 Madison Avenue was completed in 2007.