Eleven condominiums and townhomes in developer John Kanes Ramblewood at North Hills residential development will be auctioned off next month in Raleigh.
The May 19th auction, announced last week, will take place about five months after Charlotte-based Mountain Real Estate Group bought the debt on the property. The auction will involve seven condos and four townhomes in the community, which sits on the south side of the Beltline just off Six Forks Road.
John Kane said Monday it was his groups decision to hold the auction. Kane said hes brought in another equity investor and reached a deal to buy the debt back from Mountain. Kane was in default on nearly $26 million in loans when Mountain purchased the debt from BB&T Bank in December.
Thats just the way things happen these days, Kane said of the deal, which he expects to close in the next few weeks.
The auction involves the remaining unsold units in Ramblewood. Kanes group also owns several dozen single-family and townhome lots as well as two other parcels where additional condo units could be built.
Bids on the two- and three-bedroom condos will begin at $100,000. Bids on the townhomes will begin at $225,000. It will be a reserve auction, meaning the seller has five days to accept or decline any bids.
Ramblewood becomes the latest in a long list of condo projects across the country to resort to an auction to reduce inventory. Demand for condos plummeted after the bursting of the housing bubble, and Ramblewood has sold just 10 lots and condos since the beginning of last year, according to property records.
Two downtown Raleigh condo projects West and the Residences at Quorum Center held auctions in 2010 and 2011, respectively. And in late 2009, 32 condos at Meadow Wood Park, just south of Interstate 440 on Atlantic Avenue, were auctioned off.
Kane is also hoping to build an apartment complex in the Ramblewood community on the site where the 1960s-era Lantern Square apartments are located.
For more information on next months auction, go to www.ramblewoodauction.com.