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Douglas Elliman completes first FDIC auction in NY.

Douglas Elliman announced its successful completion of an auction of FDIC residential properties. It was the first such auction in New York City. It was also one of the first to combine a Uniform Commercial Code foreclosure auction with a marketing auction - an innovation jointly devised by Douglas Elliman and the FDIC.

The auctioned properties, located in Manhattan and Queens, consisted of 141 co-op apartments, 82 percent of which were occupied. Of the occupied units, half were sold - a startling percentage, given the recent low demand for nonvacant units.

The auction, which took place at the Parker Meridian Hotel in Manhattan, was attended by 300 people. Active bidding resulted in the sale of nearly half the units. In a change from recent auction practices, all the units were offered at the reserve price. No units were offered absolute. Therefore, all units were sold at or above the FDIC's asking price.

Given the substantial negative carry on these properties, the objective was to dispose of as many units as possible without eroding the value of the assets.

According to Alan Rogers, managing director of Douglas Elliman Brokerage, the success of the auction was largely due to the extensive pre-auction marketing campaign conducted by the firm. This included several meetings with residents and Board members, daily on-site showings of apartments, a central message center and targeted advertising.

The auctioned properties consisted of middle-class housing formerly owned by Francis Greenburger and taken over by Goldome Bank, prior to its failure. Coordinating the auction for the FDIC was Charles Altman, an attorney at the Major Assets Department of the South Brunswick Office.
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Title Annotation:Federal Deposit Insurance Corp.
Publication:Real Estate Weekly
Article Type:Brief Article
Date:Mar 4, 1992
Words:268
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