22 October 2009 ? On November 15, two additional South Loop condo buildings will be offering units in public auctions. The developers of 2303 S. Michigan Avenue will offer 20 units of its 52-unit loft building, and 40 of the remaining 97 units at 1400 S. Michigan will be auctioned on the same day. These two sales come on the heels of March’s successful auction of 44 units in the Vetro project located just south of Congress on Wells. Sales at this auction averaged 27% below pre-auction pricing. Development has added over 2800 units to South Loop inventory in the last two years, resulting in flat and declining prices, extended marketing times, and disgruntled sellers. Developers who need to generate cash and reduce holding costs are forced to auction their units to lighten the burden of carrying huge amounts of inventory. Lucky buyers win, but current property owners in the area may see a negative impact on property values driven by typically low auction pricing.Email This Post To a Friend.
More South Loop Condos Up for Auction
October 22, 2009
Subscribe to our e-mail newsletter to receive updates.