In an effort to accelerate sales, the developer of the South River Condominiums in Annapolis will hold a public auction of up to 25 residences July 13 at 11 a.m. at the Holiday Inn in Annapolis, near the intersection of Riva and Forest roads.
Under the terms of the auction, which will be conducted by Sheldon Good & Co., seven of the condominiums will be sold to the highest bidder regardless of price.
The other 18 will be offered for bidding and sold at the discretion of the developer.
South River Joint Venture, a Long Island-based group headed by Robert A. Levine, developed the six-story building at 930 Astern Way, part of the 130-acre Heritage Harbour adult community just west of historic Annapolis.
The $15 million, 64-unit building opened in mid-1990, with prices ranging from $190,000 to $479,000, and eight residences have been sold or are under contract of sale.
Suggested opening bids for the one-, two- and three-bedroom condominiums up for auction start at $50,000.
South River is the latest of several luxury condominiums whose developers have decided to hold an auction to accelerate sales, but the first in the immediate Annapolis area. In Baltimore, Sheldon Good has held auctions for residences in the Colonnade, Scarlett Place and Deer Ridge, among other projects.
"What we're trying to create is a win-win situation for the developer and buyers," said company President Steven Good. "The developer cuts his carrying costs and jump-starts sales instead of waiting for the market to improve. The buyer gets a chance to own a luxury condominium for a fraction of the original price."
One twist to the South River auction is that because it is part of an adult community, at least one resident of each condominium must be at least one 55 or older, and no permanent resident may be under 18. There is no restriction on the age of buyers who plan to rent out their units rather than become owner-occupants.
South River will be available for inspection Saturdays and Sundays from noon to 4 p.m. and Mondays and Thursdays from 4 p.m. to 8 p.m. until the day of the auction. More information is available from Good & Co. at 1-224-4025 or 1-800-447-6748.
One week after 45 units in the Colonnade condominiums went up for auction, the first of more than two dozen buyers has settled, and many more are due to take title to their residences in the next few days.
According to Michael Fine, a vice president of Sheldon Good & Co., the primary auctioneer involved in the June 8 sale, 24 condominiums were sold the day of the auction and three more had gone under contract as of late Wednesday. The 27 sales represent more than $4.5 million worth of inventory in the building, where 24 units had been sold before the auction.
"We're pretty pleased, because by the time these units close, we will have doubled the population in the building," Mr. Fine said. "And we're continuing to write contracts. For a short period of time, the seller has authorized us to continue to sell the units at prices 10 to 15 percent over the auction prices" for comparable units.
The Colonnade units that were up for auction originally had prices of $138,000 to $494,500. At the auction, successful bids ranged from $320,000 for a three-bedroom penthouse residence with a den and library to $77,000 for a small executive studio.
Mr. Fine said 19 of the buyers are taking advantage of a "quick close" offer that gives them a discount of up to 3 percent of their purchase price if they settle within 10 days of the auction.
For the next few days, he said, prices will range from $97,000 to $247,500 for the remaining units. After this period, he said, prices will go back to the retail levels of $141,500 to $427,500. The most expensive residence in the Colonnade, a $1.3 million penthouse, was not included in the auction, and its price has not been discounted, he added.
Located at 4 W. University Parkway, the Colonnade has a sales center that is open daily from noon to 5 p.m. and by appointment. Good is the exclusive sales agent.
Around the region:
* Holden Hall, a 15-unit "single-room-occupancy" residence for men that has been created inside the old St. Jerome's Convent pTC at 761 W. Hamburg St., will open June 20. Conceived and managed by Associated Catholic Charities, Holden Hall is the second SRO project in Baltimore, along with the 13-unit Calverton project for women, which opened last fall at Calvert and East 25th streets. Popular in other parts of the country, SROs are updated boarding houses that provide residents with private bedrooms but shared bathrooms, kitchens and common areas. Kelly Clayton & Mojzisek was the architect for both Holden Hall and the Calverton.
* Shelter Development Corp. and First Lutheran Church of Towson have begun construction of Timothy House, a 112-unit rental community for senior citizens on Dunvale Road between York Road and Fairmount Avenue. When complete in early 1992, the complex will contain efficiencies and one- and two-bedroom apartments with monthly rents ranging from $295 to $415, not including utilities. Marks, Thomas and Associates was the architect. A leasing center is open Mondays through Fridays, 9 a.m. to 5 p.m.
* Medea Marella, Anne Rubin, Denise Rodgers and Herman and Violet Goldman have joined ERA-Imperial Real Estate Inc. as sales associates.