Element Condos at Atlantic Station to be Auctioned

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Element condos at Atlanta Station supposedly sold out quickly in 2004 when all 322 contracts were signed.  However when the condos were opened in 2006 the market had shifted and the buyers never showed up.  As a result, the developer, the Lane, Co. still owns 35 percent of the units.

Intown Atlanta currently has a total of 6,000 unsold condos.  Only 66 new units sold in the scond half of 2008.  For the year, 645 new condos changed hands, which is 76 percent below the average of the previous 8 years.

The numbers do not provide much hope to the developer which is why they are looking to exit.  As a result, Atlantans and others can bid on the remaining units at an auction February 28th at the W Atlanta downtown manged by Boston-based Accelerated Marketing Partners.

In all, a total number of 40 Element units will be on the auction block. Minimum bids at Element will be as much as 56 percent below listed prices. For example, a one-bedroom unit at Element that was priced at $214,900 will start at $95,000. Other minimum bids will be $139,000 for a two-bedroom unit that was listed at $276,900, and $205,000 for a three-bedroom unit that was priced at $414,900.

Jon Gollinger, co-founder of the auction company, said the Atlanta marketplace is at a stalemate and “you’ve got to let the consumer break the logjam.”

Click here for all Element Condos for sale.

We’d love to hear your thoughts.  Have you or could you ever see yourself buying a home at auction?  Will auctions become more popular as developers are in need of eliminating their carrying costs and exit projects?  Will auctions like this help the real estate market correct itself?  Respond below in the comments field.