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Sage Austin Condos Going To Auction

Jude Galligan | July 16, 2009 |

Sage On South Lamar
Sage On South Lamar

[non-downtown news]

I just learned that the Sage condos on South Lamar (about a mile south of Alamo Ritz) will be auctioned off on Saturday, August 22nd by J.P. King.  This is the second auction announcement this week as the Bel Air condos on South Congress will go to auction on Sunday, August 9th.

The Sage has 32 units total, 24 will be auctioned, 10 will be sold through absolute auction (i.e. without reserve).  It is a great time to be a buyer.  Details on previewing access and opening bids are sparse.  More to come.

-Jude

Filed Under: austin condo auction, downtown austin Tagged With: austin auction, austin condo auction, austin condos auction, bel air auction, brazos place auction, sage condos auction

The Bel Air Condos Auction

Jude Galligan | July 10, 2009 |

Many units have a full floor roof top terrace
Many units have a full floor roof top terrace

OK, non-downtown Austin related news here.  The Bel Air condos are located deep in South Austin, but I’m confident many DAB readers will appreciate knowing about this before it hits the PR wires.

Kennedy Wilson’s website indicates that the Bel Air condos in South Austin will be going to auction on August 9th.  Kennedy Wilson is the same group that auctioned Brazos Place.  Located on South Congress, past Ben White, and not far from Hills Cafe, the Bel Air is a unique product in a unique location.  Although not downtown, the Bel Air condos have always appealed to me: they’re designed to commercial specs, they’re raw, industrial, and highly functional spaces.  Some units have full floor roof top terraces.

Bel Air Condos Availability
Bel Air Condos Availability

Bidding begins at $90k.  As we all know by now, this is a ruse.  It’s doubtful this auction will generate the buzz and turnout we observed at the Brazos Place auction.  My prediction is the condos will sell for an average 30-40% discount from original asking price, or at least more than what we would see in the downtown CBD.  We’ll just have to wait and see.  Unlike foreclosure auctions which require cash on the spot, private auctions are more buyer friendly as buyers can have up to 30 days to close if they are pre-approved for a mortgage.

Bel Air features:
• Rooftop decks
• Private direct access garages
• Private balconies
• Commercial grade construction: steel and concrete
• Green Building Features
• Loft design: Concrete floors, high ceilings, exposed ductwork
• Tankless water heaters
• Energy efficient appliances

For my investor clients, here is a link to the Bel Air condos auction brochure and registration form. (pdf, 6MB)

Preview by appointment Showing hours 11-6pm everyday, and there are several photos of Bel Air available on Flickr.
—
Jude Galligan, Realtor
512-226-3414

Filed Under: austin condo auction, downtown austin Tagged With: austin auction, austin condo auction, Bel Air Condos

Foreclosures in Downtown Austin: Fact, Fallacy, and Analysis

Jude Galligan | June 26, 2009 |

In this article I hope to share some of the knowledge that I’ve gained by researching foreclosure properties for clients.  Buyers may believe foreclosures are complicated and out of reach.  Generally, I believe this is accurate, but certainly not all of the time.  Knowledge is power, so let’s see what we can learn…

Foreclosures are not new.  Every community is dealing with them.  Austin has escaped the worst of the problem because we didn’t develop to great magnitudes as did Miami, New York City, or all of California.  Certainly downtown Austin is not immune to foreclosures.  We also tend to receive a greater level of interest from the press.  Rather than deny that foreclosures exist in downtown Austin, lets temper misinformation with facts, and if we discover opportunity along the way then all the better.

The facts
In June there were 671 properties posted for foreclosure in Travis County.  155 ended up selling.  Approximately 380 were reposted from prior months.

Foreclosure Statistics
Foreclosure Sales Since January 1st, 2009

A property can be posted for foreclosure and never end up at auction.  This scenario is not uncommon if the borrower and the lender can work out an agreement prior to the auction date.  Also, third party investors can negotiate with the lender to purchase the mortgage (not the property), and work out a new agreement with the borrower.

2009 downtown Austin foreclosures
Since January 1st, 2009 there have been five recorded foreclosure sales in downtown Austin.   Four have been condos.  Two were owned by one person.  Two of the foreclosure sales were won by the banks themselves for the balance of the mortgage.

The four downtown Austin condo foreclosure sales:

1) Avenue Lofts #308, 1092sf, $187,302
2) 360 Condos #2210, 770sf + 105sf, $242,909
3) Avenue Lofts #208, 1092sf, $183,274
4) Nokonah #410, 1849sf + 524sf, $555,624

The opportunity
The current asking prices at the Avenue Lofts, 360 Condos, and Nokonah are $274/ft, $410/ft, $403/ft respectively.  So we can calculate that the two Avenue Loft foreclosures yielded a discount of 37% and 38%, respectively.  The single 360 Condos foreclosure yielded a discount of 23% from the average asking price.  The Nokonah foreclosure yielded a discount of 26%.

The foreclosure discounts above are identical to the opportunities we’re seeing in the open market.  As I’ve reported before, developers are negotiating 25-30%-off discounts, the Brazos Place auction generated a 29% discount.  Buyers are responding en masse:  54 transactions at The Shore since May 1st, and 20 transactions at Brazos Place in one day.

The market is working efficiently and it seems to have found equilibrium.  Market and auction clearing discounts for new developments are 25-30%.

Summary
Even though the number of foreclosure sales in downtown Austin is low, it’s difficult to predict what the future holds.  It’s the best buyers’ market in the past 20 years, maybe more.

Focusing on downtown Austin condos, the data suggests that there are similar opportunities for discounted pricing outside of foreclosure auctions.  The challenges for the majority of buyers interested in foreclosures are limited information, time, and money.  Sifting through the foreclosure postings takes time.  Choosing a property requires knowledge of the neighborhood and the condition of the property.  The most significant hurdle for savvy buyers is the velocity of the all-cash transaction.  A pre-approved mortgage will do you no good.  Fortunately, in this market buyers have traditional channels for finding similar opportunities.

—

As the saying goes, “cash is king.”  Interested in pursuing opportunities in Austin’s urban core?  Feel free to send me an email.

Jude Galligan, Downtown Austin Realtor
512-226-3414
judegalligan [@] gmail.com

Filed Under: austin condo auction, downtown austin Tagged With: austin auction, austin foreclosures

Brazos Place Auction Results

Jude Galligan | May 17, 2009 |

[youtube = http://www.youtube.com/watch?v=FWcxxbMI8Ks]

Brazos Place is officially sold out. Today, in less than 90 minutes, 19 downtown Austin residences were sold at an average discount of 29% from asking price.  The best deal of the day was probably the penthouse: 2745 feet purchased for $967,200, originally priced at $1,575,000.  The unit that was being advertised with a starting bid of $80,000 sold for $168,480 (OLP was $199,900).  I was able to take video of that particular auction and you can watch it above.

Below is a brief summary and you can download the complete results here (pdf).

Units sold: 19
Square feet: 23,088
Avg sale price per foot: $281.80
Avg discount from OLP: 29%

-Jude

Filed Under: austin condo auction, downtown austin Tagged With: austin auction, brazos place

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