Barnard Marcus’ first bite at the Big Apple’s property auctions market on April 28 raised $1.2m with the disposal of 66% of the 50 residential lots offered. The sale — a joint venture between BM and International Property Auctions — was held at the Marriott Hotel Eastside, Manhattan. Cowboy and part-time auctioneer Mark Allen conducted the auction.
On offer was a tranche of vacant and tenanted “co-op apartments” located in Queens, Brooklyn and Manhattan. New York co-ops are large, refurbished mansion buildings that are held as co-operatives or limited companies, with owners financing their mortgages through annual maintenance charges to the tenants.
The sale was conducted along American lines. Prior to the sale, would-be bidders had to place a deposit — called “earnest money” — to about 10% of the value of the average lot.
As was recently the case in the UK, tenanted property is not seen as a good investment in the USA. This caution was evident on the day — despite selling prices of about 25% to 30% of the vacant possession value being achieved.
By contrast, there was considerable interest in the vacant apartments — some on offer without reserves. At one end of the scale a vacant apartment at 59-30, 108th Street, Queens, sold for $14,000, while at the other a flat at 153 East 57th Street, Manhattan, was knocked down for $150,000.
On the strength of this result, BM are already planning a second auction in the city, to be held within the next two months.
