Bryant Back Bay auction unloads 10 condos at over $1 million each

Much has been made of the October 17 auction of ten units at the recently-completed (and newly-renamed) Bryant Back Bay condo project. The development, which had only sold a handful (or less) of its 50 units prior to the auction, was completed just as the real estate market, and US and international economy, ground to a halt. (The sales weren’t helped by the fact that the project was originally slated to be completed in mid-2008 but didn’t get occupancy permits until well into 2009.)

The project was unique in that it was a “luxury” development straddling two neighborhoods, the South End and the Back Bay, but not solidly within either, making it a hard sell. More-importantly, the units were large (2,000+/- square feet or more) and priced well-over $1 million, which limited the appeal to “middle-market” buyers in the sub-$1 million price range.

Pre-auction, there was an outpouring of skepticism over the intentions and expectations of the developer, with many suggesting it was a precursor of things to come in the downtown Boston real estate market. Post-auction, the talk became a dull roar. Scott Van Voorhis, who writes a “blog” for Boston.com, said as much:

… [T]he Byrant is just the latest auction of units at new condo projects in the Boston area.

But with the Bryant, the auction action appears to be creeping steadily closer to some of the big new condo towers in downtown Boston.

I have to admit, I skipped reading all the internet gossip as well as the auction, itself.

I wish I hadn’t.

What I didn’t know until this week was who was involved and what actually happened.

Vornado Realty Trust was the developer of the project and they certainly have the deep pockets necessary to ride out this economy (it was reported this week that they have cash reserves of $2.8 billion or so). Vornado brought in the big guns for the auction. In addition to Jon Gollinger of Accelerated Marketing Partners whose company performed auction duties, Vornado employed the services of uber-successful New York broker Louise Sunshine and Paul Sunshine, and their Domineum Global Real Estate Solutions. Tracy Campion of Campion & Company was, and continues to be, the broker of record for all non-auction listings.

It was a star-studded auction event – Ms Sunshine was there as was Vornado Trust chairman himself, Steven Roth! That’s quite some guest list.

If you take a long, hard look at the numbers, it’s hard to see any trend, one way or the other. The developer and his marketers trumpeted the event. Courtesy the New York Daily News:

Real estate history was made last Saturday in Boston’s Back Bay when up to $20 million of luxury homes in the same building were sold in less than an hour. Never before in the United States had an auction for multiple condominiums in one building with minimum bids starting near $1.075 million fetched final prices averaging more than $1.35 million.

True, and not a fact you saw reported anywhere in the Boston-area press.

Those who bought certainly had the money and means to purchase, perhaps all they needed was some sort of impetus to act. The auction may have provided that impetus.

While average and median sales prices in the city drop, there is still a very strong $1 million+ and $2 million+ market.

I don’t think anyone would argue that there’s a glut of buyers, but I feel as though there’s no rush on the part of developers to unload units at fire sale prices. We’ll see what happens during the cold, winter months.

Related posts:

1. Bryant Back Bay condos now listed in MLSPIN
2. Two Bryant Back Bay auction sales close
3. First Bryant Back Bay auction units close
4. Beacon Hill Boston single-family home will go to auction for $5 million+
5. Bryant Back Bay sales prices are within Back Bay average