The Boston real estate world was alive with talk, today, after it was reported in the Boston Globe (by Kimberly Blanton) that the developer of Folio Boston was going to put 34 of their units up for auction.
As you know, if you’ve read the story, Folio Boston is a recently completed, 14-story, 96-unit condominium project overlooking the Rose Kennedy Parkway, in the Financial District.
The units, at 80 Broad Street, will be sold in a live auction at the Seaport Hotel in South Boston on October 7th. There are a mixture of one-bedroom, two-bedroom, and penthouse units, available.
I can tell you, from first hand knowledge, the largest penthouse has absolutely breath-taking views of the greenway and harbor.
As Ms. Blanton reports, “A minimum bid will be required for each unit. A one-bedroom currently offered for sale at $480,000 will be sold at or above its $325,000 minimum price. The most expensive unit to be auctioned, a $1.76 million, two-bedroom with a wraparound terrace on the 14th floor with a waterfront view, has a $1.025 million minimum price.”
How do I feel about this? Well, in a broad sense, I don’t think it is an indicator of things to come. The developer did a thorough analysis and figured that less money now may be worth more money, later, and threw in its hands. I don’t see that being repeated (unless the auction is an amazing success!).
The original prices of the Folio units were pretty steep, compared to the competition in other, more appealing parts of the city (Back Bay, South End). You aren’t in a 24-hour a day neighborhood, at Folio, at least not yet. Still, they are brand new, with high-end finishes, in a great location, so they have some value.
The use of an auction could be a win-win for everyone – er, mostly everyone. The developer will end up okay, and buyers will end up okay.
Current owners, who may end up with condos that cost them 25% more than their new neighbors, can’t be too pleased.
If you are considering making an offer at the auction, there are things you should consider, and things you should know, before you buy.