Bulk Sales Pick Up Steam....
Just in from Crain's New York this afternoon, an article about six developers actively marketing bulk sales to clean up inventory and finish projects off. While bulk sales have been a regular occurrence, particularly at the beginning of projects (to give a boost right out of the gate), there are two distinct differences now.
First, developers are marketing bulk packages to close out inventory to save on further sales and marketing expense. Second, these packages are being actively and openly marketed. Most of these negotiations have been kept quiet over the years for fear of alienating purchasers who have paid full price. However, once a bulk of closings have occurred, the developer's fear declines. Combine that with a weak market and you have public bulk sales. The upside to those that paid more? At least a building becomes fully sold, and more money flows to the common fund. The negative? Your comps just went out the window.
For the full article:
Six Developers trying To Sell Condos In Bulk (Crain's)
First, developers are marketing bulk packages to close out inventory to save on further sales and marketing expense. Second, these packages are being actively and openly marketed. Most of these negotiations have been kept quiet over the years for fear of alienating purchasers who have paid full price. However, once a bulk of closings have occurred, the developer's fear declines. Combine that with a weak market and you have public bulk sales. The upside to those that paid more? At least a building becomes fully sold, and more money flows to the common fund. The negative? Your comps just went out the window.
For the full article:
Six Developers trying To Sell Condos In Bulk (Crain's)
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