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Downtown Raleigh condos to go on auction block

Posted October 7, 2010

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— The developer of the West condominium tower in downtown Raleigh plans to auction off 36 units in the development at the end of the month.

The auction, which is set for Oct. 31, will include one- and two-bedroom condos ranging from 930 to 1,800 square feet. Bids will start at $95,000 to $260,000 on units originally priced at $269,000 to $670,000.

"It's a unique marketing opportunity, especially in this area," said Andrew Chung, of RealPro Realty.

Bidders must be pre-registered, and the developer has five days after the auction to accept, counter or reject the highest bid on each unit.

"There's a price that's going to be set that the seller has to establish in his head," Chung said.

Located at the corner of North and West streets, near the trendy Glenwood South district, the 17-story West development is most known for its rooftop swimming pool. It was one of several high-rise condo projects to sprout in downtown Raleigh during the housing boom in the middle of the last decade.

West condominium tower in downtown Raleigh Downtown Raleigh condos to go on auction block

When the bottom fell out of the housing market – both locally and nationwide – three years ago, the West was left with 89 unoccupied units.

Some real estate agents think the auction will help speed the recovery in the market for downtown condos.

"They figured, if they're selling on average two units a month, that it's going to take them three years to let that inventory bleed out and to (get) the point where they feel like they hit bottom," Realtor Sharon Evans said.

11 Comments

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  • shortcake53 Oct 8, 2010

    jlyn, I ask the same thing everytime I see a new shopping center go up. Look around and see how many EMPTY ones we already have!! It is totally insane to keep building.

  • audit is regulating Oct 8, 2010

    Dahling- I completely agree. This is not the market for $600k and $700k condos.

  • jlyn67 Oct 8, 2010

    Why do they continue to build, build, build when no one is buying????

  • DahlingBella Oct 8, 2010

    "Some real estate agents think the auction will speed the recovery in the market for downtown condos." OK...lets look at this more closely. These 1/2 bedroom condos sell for the price of a house that is 10 minutes from downtown.The Hue didn't work (turning in to apartments), Bloomsbury Estates (empty), RBC Center has some availability (if you can afford the $740,000 for a 3 bedroom) and several other condo projects in the area have high unoccupancy rates. The market demographic fo people who want to live downtown is precisely the group that can't afford the cost of these condos. Raleigh isn't Chicago or New York. Developers and real estate agents need to wake up.

  • badamsnc Oct 8, 2010

    This an "Auction"? I wonder how much they paid WRAL to advertise for them on the front page of their website and mask it as news. And if they didnt pay WRAL then who works for WRAL that is connected to this development and will profit? WRAL-do you really think your viewers are really that stupid to fall for this?

  • redapace Oct 7, 2010

    "Bidders must be pre-registered, and the developer has five days after the auction to accept, counter or reject the highest bid on each unit."

    This is no auction. This amounts to nothing more than "taking offers". Suckers.

  • Gatsby Oct 7, 2010

    Feel sorry for the poor buyers already in before this "auction"...It will be tough to look at the guy next door every morning knowing he paid 1/2 of what you got soaked for...Buyer Beware

  • shortcake53 Oct 7, 2010

    I wouldnt take one if they were free.

  • jhilfiker2001 Oct 7, 2010

    of course they are not going to let you know what that reserve is....

  • jhilfiker2001 Oct 7, 2010

    i doubt the developer is going to give anything away, its nothing more than setting a reserve on eBay, so yes its still an auction.

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