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Properties at Auction sells $3.6M worth in two-part sale.

Properties at Auction sells $3.6M worth in two-part sale

An unusual marketing strategy developed by Properties at Auction produced $3.6 million worth of commercial and residential sales recently at two consecutive one-hour sales in Manhattan.

The "piggyback" real estate auction, which featured landmark commercial properties as well as a broad range of bank-owned co-op apartments, took place on May 14 at New York's St. Moritz Hotel.

"Approximately 50 percent of the commercial properties were sold at prices exceeding reserves set by their owners," said E. Rene Frank, president of Manhattan-based Properties At Auction. "The residential portion of the auction produced even more satisfactory results on behalf of a major New York bank--of the apartments sold, 84 percent produced sales prices exceeding minimum reserves by as much as 65 percent."

In the commercial portion of the auction, the firm sold a landmarked former bank building located at Eighth Avenue and 14th Street in Manhattan for $2.7 million to Arinvest & CIE, a French firm.

At the other end of the scale, a "little red schoolhouse" in Armington, Illinos, that was auctioned absolute (sold to the highest bidder regardless of price) received several write-in bids from local residents and generated a frenzied bidding war. The property, which was owned by New York investor Arthur Shapolsky, who purchased it from a photograph, sold -- sight unseen -- to Michel Madie for $9,000.

The Biltmore Theatre, which failed to generate an opening bid, was withdrawn.

Over 250 people attended the residential portion of the auction, and purchased more than half a million dollars worth of bank-owned studio, one- and two-bedroom co-op apartments located throughout Manhattan.

The highest price paid was $165,000 for a one-bedroom co-op at 230 Central Park South. The biggest bargain appeared to be a successful $22,000 bid for a one-bedroom apartment at 222 East 95th Street.

None of the apartments were offered at "absolute," a term Frank believes conveys the expectations of a "fire sale."

"A sale based on truly reasonable minimum not subject to sellers approval subsequent to the bidding is by far the fairest and most reputable way of selling residential real estate at auction," he added.
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Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Real Estate Weekly
Date:Jun 5, 1991
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