Luxury Homes on Boston Foreclosures for Sale

by Simon Lindsay on cities

About $20 million worth of luxury homes were sold in Boston foreclosures for sale at Back Bay. The foreclosure auction took less than one hour, with starting bid price of $1.075 million and average sale price of over $1.35 million.

According to industry experts, it was the first time in Massachusetts and also in the United States that an auction had been held for multiple condominiums located in one building. The event was handled by real estate guru Louise M. Sunshine who worked at the marketing department of Donald Trump before she established her company, Sunshine Group and focused on developing strategies to market high-end condominiums in Manhattan.

The 10 homes placed on Boston foreclosures for sale were part of the 50 units at Bryant Back Bay building and were sold in about 25 minutes. Also in the same event, Campion and Co. sold four additional luxury homes at nearly $1.4 million. Another six offers were made, with the highest bid reaching $2 million.

Sunshine said that she expected the Back Bay event to lead to as many as six auctions of luxury homes in New York City. Industry experts said that the speed at which luxury homes were sold at the Back Bay auction was a market-changing development. They added that it is not impossible to see more of this kind of auction as developers struggle to clean their inventory of unsold, distressed luxury properties.

Real estate company Vornado Realty Trust was the owner of the Bryant Back Bay property. Vornado has various property holdings across the country, including a 22 million-square-foot in New York City.

Six months before the auction, only 53 condominiums had been sold in the Bryant Back Bay for more than $1 million. The auction was closely monitored by national banks and lenders that foreclosed properties from developers who failed to continue paying their mortgage loans because of the sharp decline in sales.

According to industry experts, the condominium market has been severely affected by the economic slump and the increasing number of cheap foreclosure properties. They said that in the current market, many buyers prefer to buy low-priced foreclosure properties in good condition instead of spending large amount of money to purchase luxury homes.