The Ellington Lofts Auction

I checked out the Ellington Lofts today since they are putting on this auction on may 9th. The prices are insanely cheap [[I know, it's just a starting bid, but still) - most are going for 50 to 60 % off the original price. The lofts are fantastically beautiful with magnificent views of the city. You can get a two bedroom corner loft, with spectacular views and a great patio for 115,000 starting bid. The economy is bad and with the 25 remaining lofts that are up for bid, only about 10 people have pre-registered to attend the may 9th auction. If the number stays that low, you'd have a great chance of getting the lofts as cheap as the starting bid.

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Originally Posted by dcmorrison12

I checked out the Ellington Lofts today since they are putting on this auction on may 9th. The prices are insanely cheap [[I know, it's just a starting bid, but still) - most are going for 50 to 60 % off the original price. The lofts are fantastically beautiful with magnificent views of the city. You can get a two bedroom corner loft, with spectacular views and a great patio for 115,000 starting bid. The economy is bad and with the 25 remaining lofts that are up for bid, only about 10 people have pre-registered to attend the may 9th auction. If the number stays that low, you'd have a great chance of getting the lofts as cheap as the starting bid.

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I've seen a couple of those auctions around town. I know the Riverfront condos just did one.

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Originally Posted by dcmorrison12

I checked out the Ellington Lofts today since they are putting on this auction on may 9th. The prices are insanely cheap [[I know, it's just a starting bid, but still) - most are going for 50 to 60 % off the original price. The lofts are fantastically beautiful with magnificent views of the city. You can get a two bedroom corner loft, with spectacular views and a great patio for 115,000 starting bid. The economy is bad and with the 25 remaining lofts that are up for bid, only about 10 people have pre-registered to attend the may 9th auction. If the number stays that low, you'd have a great chance of getting the lofts as cheap as the starting bid.

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Did you find out the association fees for the Ellington? Just curious.

it ranges, depending on what loft layout you want. They are a bit high - anywhere from 200 to 400 a month, but you get a free covered/guarded parking spot in a parking structure [[which connects to the building by an enclosed walk way on the 2nd floor), the public spaces are cleaned twice a week and look spectacular, it helps pay for security, and there is a fitness room that you can use.

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Originally Posted by dcmorrison12

it ranges, depending on what loft layout you want. They are a bit high - anywhere from 200 to 400 a month, but you get a free covered/guarded parking spot in a parking structure [[which connects to the building by an enclosed walk way on the 2nd floor), the public spaces are cleaned twice a week and look spectacular, it helps pay for security, and there is a fitness room that you can use.

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Thank you, dc. $200-400 isn't as steep as other places in town. Those are nice condos.

For $115k you can buy just about any house you want. Remember last month's median price was $5816 to say its a buyer's market is an understatement.

So its 50% off what it was a couple of years ago? Big Deal There's a building on Jefferson and many in Brush that go for 15% of their 2005 price.

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Originally Posted by Ocean2026

For $115k you can buy just about any house you want. Remember last month's median price was $5816 to say its a buyer's market is an understatement.

So its 50% off what it was a couple of years ago? Big Deal There's a building on Jefferson and many in Brush that go for 15% of their 2005 price.

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Uhhhh...you've never been inside these buildings on Jefferson and in Brush Park, correct?

DC, How did you get the information of 10 people signing up for the registration?

The "10" came from the Ellington Lofts tour guide - sure, it may have been off but he was telling me that the the turnout in general was lower than expected. The 50 - 60% off is still not low enough to get enough people through the door right now, with the economy. He did mention that their other location, the Riverfront Condo's are getting an incredible turnout - but their prices are as low as $60k.

So, I'd say the "10" is a genuine number.

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Originally Posted by LodgeDodger

Uhhhh...you've never been inside these buildings on Jefferson and in Brush Park, correct?

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He has probably never even been in Detroit. Not that I'm complaining.

I wonder how the mortgage issues are affecting buyers for these types of auctions. I've heard that it's impossible to get a loan for a condo these days unless the building is at least 50% occupied, will people be dropping cash on these units?

I toured the week before the auction was announced and thought that the units were very nice, if they do not even get 25 people to register they would not sell all of them. It will be interesting to see what will happen after the auction.

They advertise the 60% slash in price, but the fact remains a 1 Bedroom, 1.5 Bath apartment with 1,100 square feet is beginning bidding at $95,000.

Thats pretty steep considering you could get a Victorian house in the same neighborhood with three times the square footage for about the same price. These places are really cool and I would consider bidding if I had the down payment money, but I can understand why there isn't a huge demand for them.

I wish them luck though. The last thing we need is another failed redevelopment.

My guess would be that the higher price buys you the implied maintenance and security that you would have to provide yourself if you bought a free standing house rather than a condo in the building. As someone contemplating a first time home purchase, those things would mean a great deal to me. But each person must make that determination for themselves.

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Originally Posted by Maxine1958

My guess would be that the higher price buys you the implied maintenance and security that you would have to provide yourself if you bought a free standing house rather than a condo in the building. As someone contemplating a first time home purchase, those things would mean a great deal to me. But each person must make that determination for themselves.

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Amen, Maxine. Home ownership isn't for everyone.

My wife and I stopped by the Ellington Lofts too on Sunday to check them out and get details on the auction. The unit are truly nice, and I think they are some great deals. Especially the corner units with the wrap-around decks. We decided we aren't loft people. Anyhow afterward we stopped off at Brush Park Lofts. To make a long story, one of the folks showing us through those units recently bought at Ellington Lofts. He said the current condo owners are filing a lawsuit to stop the auction. Unsure what their claims are but here is an interesting point: Before accepting a final bid, the owners are requiring there are at least three bids on each unit in $20,000 increments before accepting an offer. Here is the math: On a unit that opens at $95,000, the first bid is $115,000, the second is $135,000, the third bid is $155,000. Not bad but at least according to this guy, no one is getting the units for $95,000 We were told the developer has since moved to Florida or Arizon and wants to just get out of the Michigan market. One unit has marble in the kitchen and living room, comes with furniture, and is gorgeous.

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Originally Posted by Maxine1958

My guess would be that the higher price buys you the implied maintenance and security that you would have to provide yourself if you bought a free standing house rather than a condo in the building. As someone contemplating a first time home purchase, those things would mean a great deal to me. But each person must make that determination for themselves.

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No, the higher price buys you a new condo. This is the cost of construction with the developer and trades paying their workers and making a reasonable profit. Your maintenance and security are paid through the condo fees. Don't forget to budget in condo fees if you buy a condo.

Quoted: This sale includes 25 condominium residences with minimum selling prices as low as $95,000. A published minimum selling price has been established for all the residences. This means that the Seller has agreed to accept from registered bidders all bids equal to or greater than the published minimum selling price for each of these residences. No bid below these minimums will be recognized.

I'm a little rusty on contract law, but it doesn't sound to me like they can secretly be planning to reject anything less than the three-bid increments discussed above.

True but you also have to see Term F of the "Terms and Agreement"

[[F) Seller has the right to postpone or cancel the auction in whole or in part, in its discretion,
and to modify or add any terms and conditions of sale and to announce such modifications
or additional terms and conditions either prior to or at the auction.

The seller can wait until auction day, see that only 20 people show up, and cancel the auction.

FINANCING
"Financing is available for qualified Buyers. In the event a successful bidder wants a mortgage financing contingency in the Condominium Purchase Agreement, successful bidder must use financing arranged by the Seller’s preferred lender[[s) and must be pre-qualified in writing for a specific dollar amount prior to auction day."

In addition, all bidders are required to be pre-qualified through one of four lenders [[Countrywide, National City, Metlife or BofA) prior to the auction. So if you're not paying cash, this isn't something you can decide the night before to attend. Plus you must go through their four contacts at each of the institutions.

The prices may have been artificially inflated the past few years and the opening bids reflect near where the true values lie. What will be interesting, is if he can't even get minimum bids on all the units, showing that the buyers think even at the 40-50% discounts they're overpriced. And the condo lawsuit - not sure what it entails, but probably a case of severe buyer remorse.

Does anyone know how the auction went yesterday?

I was wondering the same thing. The website hasn't been updated since before the auction [[not that it would). Google news search didn't turn anything up either.

Looks like around 75% of the units sold.

Cummings said the average sale price was 30 percent above the minimum at the Ellington and 145 percent above the sale price at the Riverfront.

Based on the promtion materials, starting prices at the Ellington were 95K and the Riverfront at 60K which would make the average "auction prices" in the 130-140K range for both developments.


http://www.crainsdetroit.com/article...FREE/905119957

from the article:

>>>Cummings had promised to donate $1,000 from the sale of each unit to the Detroit Symphony Orchestra. He donated $35,000<<<

Good for you Mr. Cummings. The arts are losing most of their corporate sponsorship. I found out Saturday night that the Detroit Opera House lost 80% of their corporate sponsorship.

Thanks. Mr. Cummings.