On Auction Day, Rowan Lofts Successfully Moves 63 Units

By Samantha Page
Published: Monday, February 09, 2009, at 09:15AM

Eric Richardson [Flickr]

Bidders at the Rowan Lofts auction consider units in front of one of the large screens showing auction status.

DOWNTOWN LOS ANGELES — Sixty-three units in the new Rowan Lofts building on Spring sold at auction in three and a half hours on Sunday afternoon.

A one-bath studio went for $207,000, the lowest price. On the other end of the spectrum, the two-bed, two-bath penthouse sold for $534,000.

The starting prices ($195,000 - $490,000) were far below previous market rates, as the developers tried to unload enough units to satisfy lenders and avoid turning the building into rentals.

Developer Goodwin Gaw called the Historic Core "the meatpacking district of LA," a once-seedy area of Manhattan that has become a chic residential and nightlife neighborhood.

Downtown Properties' Bill Stevenson was disappointed all the units didn't sell, but pleased with a successful auction. "We are thrilled that we sold 62 units in one day in this climate," he said.

The auction offered all units simultaneously, allowing buyers to tailor their bids to the overall sales, rather than approaching the units piecemeal.

The auction technology, called Intellimarket, has only been in use since 1995. The Rowan sale was the largest number of units sold at one time using the system.

"The technology was flawless," Stevenson said. He's also a co-founder with Intelligent Market Systems, the company that developed Intellimarket. "We're very happy with it, and the buyers were very happy with it."

Now, buyers will fill out paperwork and enter into escrow. Developers are hoping to have begin closing on units as of March 1.

As for the rest of the building, Rowan will begin marketing the remaining units next week.

Update (Tuesday): Representatives from the building have corrected the number of units sold to 63. We originally reported 62 units.

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Comments

bromike666 writes:

IMHO still overpriced, "45% off insanely stupid price does not equal a good price." Though with rates as low as they are I can see why people are tempted. Maybe next year I'll look the fool. Heck, maybe just posting makes me look the fool

Figure 1/2 of the 62 units will fall out of escrow and the building will either go rental or the next round of starting bids will be even lower. We've got a long, long way to go before we hit bottom in the real estate market. Anyone who tells you different is a broker and we all know what their opinion is worth.

# on Feb.09.2009 AT 11:42 AM

Believer writes:

Bromike666....love your positive enthusiasm for downtown development! Way to go, there buddy! How about a little encouragement for those who bought amazing historic units for a great price to help revitalize our neighborhood? Kudos to all of the new owners at the Rowan. Welcome to the neighborhood!

# on Feb.09.2009 AT 01:41 PM

Ryan Price writes:

How likely is it that they'll stay above that 60 unit sold threshold given that they're at 63 right now? I'm not ready to buy anything, but would love to rent at the Rowan.

# on Feb.09.2009 AT 01:58 PM

Eric Richardson writes:

Ryan: Personally, I'd say it's very high. They want the building to stay condo. They could always make another deal or two to make up for someone who drops.

# on Feb.09.2009 AT 02:01 PM

Susana Benavidez writes:

Ah... Lucky folks! :) Welcome to the neighborhood!

# on Feb.09.2009 AT 02:53 PM

sm writes:

Whoever bought a condo there is either wealthy or stupid. 600 in HOA and 200 for one parking spot. That's 800 dollars down the drain that you have to pay every month for as long as you're there. It's a million times better to buy a house. You get more living, and parking space for your money.

# on Feb.09.2009 AT 03:33 PM

Bromike666 writes:

Way to go, there buddy! How about a little encouragement for those who bought amazing historic units for a great price to help revitalize our neighborhood

Hey truth hurts, I got the same reaction years ago when I said it was stupid to buy a house/loft. I got the same reaction last year when I said prices would fall at least 25%. We're not here to subsidize bad development choices and "loft" prices that were based on a pyramid scheme that was, and still is, tumbling down. If people hadn't over paid for property and bought beyond their means these last 9 years we might not be in the economic mess that surrounds us. But hey, what do I know. It's your money spend it as you please.

FYI, I've been helping revitalize downtown since 1999 by paying rent, local business tax, equipment tax and payroll tax.

# on Feb.09.2009 AT 04:38 PM

Why did Gilmore pull out? writes:

anyone know?

He used to be a partner in the Rowan, right?

# on Feb.09.2009 AT 10:40 PM

Eric Richardson writes:

If you look on the Rowan Lofts' "Team" page, you'll see Gilmore listed as a consultant. Downtown Properties has always been the main developer.

# on Feb.09.2009 AT 10:43 PM