The Beacon Condominium is a 365-unit full-service, luxury high-rise building in Jersey City, NJ, that was part of a multi-phase, planned development by Metrovest Equities. The property consisted of one-, two-, and three-bedroom units, and 75% of the project was sold upon our retention. Due to the economic recession and declining market for the property, sales dramatically slowed down and the developer was selling only approximately one to two units per month.
Metrovest’s goal was to accelerate sales in the building and to sell as many units at the auction as possible at market pricing. Half of the remaining units were leased at the time.
We offered for sale 25 units (artificial scarcity), with 12 to be sold Absolute regardless of price. We showed all of the 45 un-leased remaining units but were committed to selling only 12 of them.
The six-week auction program produced the following results:
- 1300+ Inquiries
- 750 Open House Attendees (Parties)
- 160+ Due Diligence Packets Sold
- 105 Registered Bidders
- 32 Units Sold
- 15 units closed within two weeks
Tight Pricing Utilizing Buyer's Choice Bidding
The Developer was very pleased with our Buyer’s Choice Bidding system, as we were able to achieve incredibly tight market pricing. He wanted to continue selling units after the 32nd unit was sold; however, we advised him to stop once we anticipated the spread to drop (to preserve the project’s pricing integrity).