Buyers hit condo jackpot
Boston luxury units sell for way less at auction
By Thomas Grillo
Sunday, October 18, 2009 - Updated 22h ago
Once touted as private entry to the best of Boston living, 10 super-luxury condominiums were unloaded at an auction yesterday for up to 41 percent off their list price.
More than four dozen bidders packed a room at Boston?s Colonnade Hotel for a chance to own a two- or three-bedroom home at the Bryant, a new 50-unit, 10-story brick building on Columbus Avenue straddling the Back Bay and South End neighborhoods. Most of the units sold in the $1.3 million range after being listed from $1.7 million to $2.2 million.
Vornado Realty Trust, owner of the Bryant and co-developer of the stalled former Filene?s project in Downtown Crossing, hired Accelerated Marketing Partners, a Weston-based auctioneer, when it was clear the units were going unsold. Prior to the auction, only one unit had closed, according to the Suffolk Registry of Deeds.
Russell DeMartino, Vornado?s vice president of development, declined to comment. But Jon Gollinger, Accelerated Marketing?s chief executive, said he was frustrated that the units sold at such low prices.
?We wanted more and we are disappointed in the numbers,? Gollinger said. ?But buyers got a great deal and we have to live with their judgment of the Bryant?s value.?
John Ford, a Boston real estate broker, said the auction was a disaster for Vornado, which was hoping the auction would reset the high prices buyers once paid for luxury living in the Hub?s downtown.
?The auction was complete failure for the developer,? Ford said. ?The units averaged $671 per square foot with parking. Thats not good news for Vornado. Buyers are paying $700 per square foot in the Back Bay and Beacon Hill for walk-ups without parking.?
A Falmouth couple, who declined to be identified, purchased a third-floor, three- bedroom unit for $1.3 million, or 22 percent off the original list price of $1.7 million.
?The price we paid was very close to the highest number we were willing to spend,? the buyer said. ?If they hope to sell the rest of the units, they should lower the prices more dramatically.?
Another buyer, who spoke on the condition of anonymity, paid nearly $1.4 million for a three-bedroom dwelling on the fourth floor, 28 percent off the original asking price of $1.9 million.
?The prices were on the high side, but the units are fantastic,? the buyer said. ?They?re big and the construction is first-class and it comes with self-parking. This auction will set the prices for luxury condos in the downtown for the next few years.?
Brokers from the Clarendon and the W Hotel Residences, two downtown luxury condo projects where sales have been scarce, watched the auction unfold, a source told the Herald.
tgrillo@bostonherald.com