DHCD Real Estate Auction Highlight Reel (VIDEO)
The DHCD Real Estate Auction, hosted by Alex Cooper Auctioneers, was a very interesting experience (see earlier POST for the announcement). This was my first live auction and I must say the auctioneer had a command of the open ascending bid auction and the emotions of the audience. He seemed to know just when to count the bid down (“going once, twice..”) and when to keep calling (“150 bid now 60?”) to push the dollar amount up. Kudos to Alex Cooper.
Eleven properties were advertised for auction and ten were actually sold. I unfortunately didn’t take note of each buildings closing price, but here are the sold values I did capture. Assessed values shown are from the DC Taxpayer Service Center website.
A few interesting stipulations related to the post-purchase procedure jumped out at me:
- A 5% premium is added to the “hammer” price.
- Within 60 days after the auction, winners must provide proof of financing to cover both acquisition and development costs. (I’m curious to know what happens if you can’t.)
- DCRA grants a 180 day grace period where auctioned properties are subject to their original tax code – to allow time to gain building permits.
- All auction properties must be fully developed within 18 months of closing.
- Developer must certify that improvements are designed in accordance with applicable laws related to persons with disabilities.
Congratulations to the winning bidders and I look forward to seeing the re-developed properties!