DJC on 1111’s Bulk Sales Approach
I don’t have a subscription to the DJC but I hear they wrote about 1111’s bulk sales approach recently, Kundig-designed lofts: Justen tries bulk sales. Fortunately I was forwarded the article. Here are the interesting bits:
First on Eleven Eleven:
Nine units are in the first release. They are between 612 and 793 square feet and are priced between $255,000 and $379,000 in the bulk program. That’s 20 to 25 percent lower than the initial list pricing, according to Dean Jones, president and CEO of Realogics, which is marketing the project.
Under the bulk sales approach, buyers get a volume discount depending on the percentage of homes that are sold within each release. Buyers can join the bulk sale with a refundable deposit of $500 through the end of the month. Units must close by Nov. 30.
And the second on how it’s appraisals that is driving condo prices down:
He said the appraisal process is driving the market now, and that is hurting niche projects designed by acclaimed architects. Kundig’s firm, OSKA, won the American Institute of Architects’ 2009 Architecture Firm Award, the group’s highest honor for a firm.
â€œIt doesn’t seem to matter what a buyer is willing to pay anymore, it only matters what an appraiser thinks because that affects what a lender is willing to lend,â€ said Justen. â€œThe reality is that our industry is being commoditized by the lender community, and that means that a niche development like Eleven Eleven East Pike, which was never designed for the masses, is nevertheless being held back by a homogeneous appraisal market.â€
For more check out the Realogics press release, Living Art – New Capitol Hill Lofts Designed by Nationally Acclaimed Architect Tom Kundig Open for Sales.
Update: Emailed with Dean from Realogics. No sales yet but they have had two offers in the last week. Sales center will be open this weekend from 12 to 6 if you want to tour the place.