Sabine Auction Results!
February 28, 2010 21:22 Filed in: News
Today, more than 200 registered bidders showed up to compete for 31 units in the much anticipated Sabine auction. In the end, 29 of 31 units sold for an average 30.5% discount with a final price per square foot of $228. With strong demand, the developer added four units into the auction: three just days before the sale and the fourth unit during the auction.
Prices were about 19% lower on a price per square foot basis than the recent Brazos Place auction -- the Sabine's closest comparable. The additional discount is appropriate given the problems that have plagued the project. In a recent valuation analysis, Austin Towers estimated that a fair sales price would be a 30% discount and units traded hands for slightly less than that.
Here are the key metrics on the sale:
Sale Prices by Unit Type
* Includes 4% Buyer Premium
Sale Prices by Unit
* Includes 4% Buyer Premium
Interestingly enough, the developers still own about a dozen units which they plan to sell directly to buyers and through MLS listings. In can be assumed that these units will sell for approximately the same price as the auctioned units which raises the obvious question: why didn't they sell the remaining units in the auction? While it's hard to know what they are waiting for, the developers likely wanted to avoid flooding the auction with too many units and driving prices even further down.
For the developers, the auction is likely a relief. It does go to show that these sorts of auctions do work and that there are many potential downtown Austin condo buyers on the side lines looking for a good deal. The prices of the remaining units -- and the speed with which these units sell -- wlll determine whether the auction prices were in fact a good deal.
Prices were about 19% lower on a price per square foot basis than the recent Brazos Place auction -- the Sabine's closest comparable. The additional discount is appropriate given the problems that have plagued the project. In a recent valuation analysis, Austin Towers estimated that a fair sales price would be a 30% discount and units traded hands for slightly less than that.
Here are the key metrics on the sale:
Sale Prices by Unit Type
| Unit Type | Original Price | Sale Price* | $/SF | Discount |
| 1/1 | $252,631 | $189,120 | $264 | 25.1% |
1/1 + Study | $289,900 | $196,733 | $210 | 32.1% |
2/2 | $464,083 | $310,007 | $214 | 33.2% |
All Units | $341,697 | $237,388 | $228 | 30.5% |
Sale Prices by Unit
Unit # | SF | Bed/Bath | Original Price | Starting Bid | Sale Price* | $/SF |
303 | 693 | 1/1 | $234,900 | $85,000 | $172,640 | $249 |
| 305 | 1462 | 2/2 | $409,900 | $145,000 | $276,640 | $189 |
| 308 | 925 | 1/1 + Study | $267,900 | $95,000 | $193,440 | $209 |
| 401 | 1461 | 2/2 | $485,900 | $165,000 | $319,280 | $219 |
| 404 | 728 | 1/1 | $249,900 | n/a | $194,480 | $267 |
| 409 | 918 | 1/1 + Study | $259,900 | $95,000 | $193,440 | $211 |
| 501 | 1461 | 2/2 | $485,900 | $175,000 | $327,600 | $224 |
| 502 | 755 | 1/1 | $239,900 | $95,000 | $193,440 | $256 |
| 504 | 728 | 1/1 | $249,900 | $85,000 | $192,400 | $264 |
| 508 | 951 | 1/1 + Study | $279,900 | $95,000 | $188,240 | $198 |
| 510 | 682 | 1/1 | $204,900 | $85,000 | $166,400 | $244 |
| 605 | 1467 | 2/2 | $434,900 | $155,000 | $287,040 | $196 |
| 610 | 682 | 1/1 | $229,900 | $85,000 | $167,440 | $246 |
| 701 | 1461 | 2/2 | $469,900 | n/a | $350,480 | $240 |
| 703 | 695 | 1/1 | $240,900 | $95,000 | $197,600 | $284 |
| 704 | 728 | 1/1 | $259,900 | $85,000 | $195,520 | $269 |
| 705 | 1467 | 2/2 | $449,900 | n/a | $315,120 | $215 |
| 707 | 1426 | 2/2 | $409,900 | $135,000 | $279,760 | $196 |
| 801 | 1461 | 2/2 | $530,000 | $185,000 | $357,760 | $245 |
| 802 | 755 | 1/1 | $273,400 | $105,000 | $205,920 | $273 |
| 804 | 728 | 1/1 | $311,900 | n/a | $196,560 | $270 |
| 805 | 1460 | 2/2 | $469,900 | $165,000 | $309,920 | $212 |
| 808 | 951 | 1/1 + Study | $311,900 | $95,000 | $198,640 | $209 |
| 904 | 728 | 1/1 | $263,900 | $85,000 | $197,600 | $271 |
| 907 | 1426 | 2/2 | $434,900 | $135,000 | $263,120 | $185 |
| 909 | 918 | 1/1 + Study | $294,900 | $95,000 | $195,520 | $213 |
| 910 | 682 | 1/1 | $244,900 | $85,000 | $180,960 | $265 |
| 1001 | 1419 | 2/2 | $550,000 | $195,000 | $365,040 | $257 |
| 1004 | 728 | 1/1 | $279,900 | $95,000 | $197,600 | $271 |
| 1007 | 1426 | 2/2 | $437,900 | $145,000 | $268,320 | $188 |
| 1008 | 951 | 1/1 + Study | $324,900 | $105,000 | $211,120 | $222 |
AVG | 1,043 | $341,697 | $117,222 | $237,388 | $228 |
Interestingly enough, the developers still own about a dozen units which they plan to sell directly to buyers and through MLS listings. In can be assumed that these units will sell for approximately the same price as the auctioned units which raises the obvious question: why didn't they sell the remaining units in the auction? While it's hard to know what they are waiting for, the developers likely wanted to avoid flooding the auction with too many units and driving prices even further down.
For the developers, the auction is likely a relief. It does go to show that these sorts of auctions do work and that there are many potential downtown Austin condo buyers on the side lines looking for a good deal. The prices of the remaining units -- and the speed with which these units sell -- wlll determine whether the auction prices were in fact a good deal.