Auction Method Chosen to Move Condo Sales

"We want to jump start the sale of these completed units so that we can get on with Phase II, on which we've already begun site work," said Rick Tyner, who is developing the condominiums along with partner Irwin Arkin.

The plan is to build a total of 44 condominium units along the golf course. Using an auction is an increasingly common way to sell a development, according to Craig King, president of J.P. King. "Selling units in an existing development can take a while using conventional methods, and developers are usually eager to get on to the next phase. With an auction, they can offer all eight condominiums in a single day," said King.

The auction also gives buyers a chance to buy at their own price, he said. "Two of these eight units will sell absolute, meaning they will go to the highest bidder regardless of price, so somebody may get a real deal," said King. The remaining six units will be subject to seller confirmation, meaning the sellers will have the right not to sell them if bids are too low.

Tyner said the condominiums haven't sold yet due to a soft economy and unfortunate timing--coinciding with the September 11 terrorist attacks. "Just as we were in the final construction stages, the attacks hit, and of course, nobody was buying anything for a while," he said.

The condominiums are the partners' second project in the area; the first was an 11-site lakefront development on Lake Michigan now known as Pa-Be-Shan Shores.

Tyner and Arkin decided an auction would give the condominiums more exposure outside Charlevoix, according to King. "While there are prospective buyers in the local area, the reality is that a lot of the people who own properties in northern Michigan live and work most of the year in places like the metropolitan Detroit area, Ann Arbor, Dearborn and Chicago. Since the entire auction process takes just a few weeks, we can carry out a more aggressive campaign in those areas," said King.