After Lull in Sales, Auction Helps Condo Community Sell 43 Units
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By Anuradha Kher, Online News EditorAtlanta–An auction held at the Cosmopolitan at Buckhead helped the condominium project sell 43 units in two hours. Over 250 people attended the event. The 244-unit Cosmopolitan has been on the market since early 2007, but after the credit crisis hit and the economy started slowing down, demand for the…
By Anuradha Kher, Online News EditorAtlanta–An auction held at the Cosmopolitan at Buckhead helped the condominium project sell 43 units in two hours. Over 250 people attended the event. The 244-unit Cosmopolitan has been on the market since early 2007, but after the credit crisis hit and the economy started slowing down, demand for the condos dipped too. Now, about 50 units remain unsold.After observing a couple of other buildings auctioning their units, developer Morris J. Kaplan Communities decided to have an auction for Cosmopolitan.“We started to see a decrease in demand due to uncertainty in the economy, fall in home prices and the job losses,” Morris Kaplan, president of developer Morris J. Kaplan Communities, tells MHN. “We did not really consider converting to rentals because a couple of condo communities already did so and there was some new rental product in the neighborhood as well. There would be too much inventory in the market.”Janis Kirtz, president of Morris and Raper Realtors, says, “The auction was a great kick off to our sell out phase, which is now underway. It was a means of accelerated marketing for the community.” Residences sold from the low-$100,000s to $272,000 at the auction. FHA financing is available on homes at Cosmopolitan at Buckhead, allowing buyers to put down a 3.5 percent deposit. The $8,000 tax credit for first-time home buyers also contributes to this success of the sales here. Post-auction pricing on the homes now ranges from $125,000 to $299,000.” Kaplan adds, “From the peak period to the auction, prices for the units fell about 30 percent.”Each unit at Cosmopolitan includes features such as gourmet kitchens with granite countertops, sophisticated 42-in. flat panel wood cabinets and spacious pantries, 10- to 12-ft. ceilings, operable near floor-to-ceiling windows, and large linen and walk-in master- and guest-room closets. Hardwood floors accentuate the hallways, living rooms, dining rooms, powder rooms and kitchens. All residences offer balconies or patios, select units have private terraces with pool access and magnificent downtown views and private street-front entrances. Select units also feature double vanity sinks, walk-in showers and garden tubs in master baths and pedestal sinks in powder rooms.