One of the first developer auctions of a Manhattan condominium in 20 years was a success with over 400 in attendance according to the developer of the Madison Square North luxury m127 condominium who sold six out of six residences auctioned on Sunday at the Roosevelt Hotel at solid prices set by today's market.
"We think this is a real solid outcome for the buyers and the innovative approach gave us an opportunity for some recovery," said Kyle Ransford of Cardinal Investments, the building's developer who was more than pleased with the Sunday's well-attended auction. "We thank SHoP Architects for the incredible building that we created in partnership with them. We felt Paramount had flawless execution of the auction. Their company has a bright future."
Paramount Realty USA was the company hired by Cardinal Investments to run the auction.
"Sunday's results are proof that auctions represent a smart way to market and sell real estate. The trend will continue to grow here in Manhattan and elsewhere, " said Misha Haghani, one of the two principals at Paramount Realty USA, the New York City-based real estate auction company hired by Cardinal to market and sell the remaining six units at the m127 development, located on 127 Madison Ave. between 30th and 31st St. "It is clear that the Manhattan community embraced this innovative approach."
Over the last five weeks Paramount Realty USA held several weekend and weekday open houses at the property which were very well attended by interested buyers.
"We expected a full room on the day of the auction and we got it," added Scott Burman, Paramount Realty USA's other principal. "Our buyers are pleased with the prices which were set by today's market.
"The transparent and open nature of the auction process provided pricing clarity to buyers by showing what others were willing to pay," added Burman. "This has been a very exciting opportunity for both the buyers and the seller."
Auctions have grown in popularity as an effective marketing and sales strategy in other parts of the country. Auctions were held last year in Riverdale, Queens and Jersey City, but not in Manhattan, according to Haghani.
The cutting-edge m127 building was designed by award-winning SHoP Architects, known worldwide for their eye-catching projects that include the Porter House Condominium development in Manhattan's Meatpacking District, the Barclays Center at Atlantic Yards, the redesign of New York City's Fashion Institute of Technology and Google's first-ever ground-up structure, among many notable projects. The m127 building has a total of nine condominium units. Three were previously sold by the developers before they hired Paramount Realty USA to conduct the auction.
About Paramount Realty USA
Paramount Realty USA, founded by Misha Haghani and Scott Burman, is a real estate auction company that exclusively represents sellers in the marketing and sale of real estate via auction on an efficient, sophisticated and accelerated basis. The company's programs provide clients with the competitive advantages they seek in both robust and challenging markets.
Haghani and Burman, who graduated from NYU's Stern School of Business together, were reunited in 2006 when Burman's development company, The Engel Burman Group, auctioned a Queens condominium project they had built. Haghani, who was with another company at the time, worked on that auction, which was a huge success; all 21 units sold at the auction and pricing was within a few thousand dollars of their original asking prices.
"We always talked about someday getting together when the time was right to start our own auction company," said Burman. "It's a compelling approach to selling real estate in today's market that we believe in and know works well."
Today at Paramount Realty USA, both Haghani and Burman lead a team of sophisticated professionals—who include developers, lawyers, brokers, MBAs, engineers and persons with their masters in real estate—that truly understands the complexities of each transaction and executes in a manner that is unparalleled by one-dimensional brokerage firms and other auction companies. The group has collectively engaged in billions of dollars of transactions in various contexts, including auctions, financings, development, acquisitions, leasing and legal.
Misha Haghani
Haghani has seven years of real estate auction experience and has worked on the marketing or sale of approximately $225 million worth of real estate via auction. He has also consulted on the auction sale of extremely high-profile properties purchased for over $1 billion per asset pursuant to UCC/mezzanine foreclosures.
Haghani also practiced corporate and real estate law on Wall Street at Milbank, Tweed, Hadley & McCloy LLP, where he represented lenders such as JPMorgan Chase and Credit Suisse and the Rockefeller family. His legal experience includes financings, due diligence, leasing, acquisitions and dispositions of nearly $5 billion of commercial, industrial, residential and retail real estate located internationally.
Haghani received a Bachelor of Science, cum laude, in Finance and International Business from NYU's Stern School of Business and a Juris Doctor with a concentration in Business Law and Regulation from Cornell Law School. He has also taken graduate level courses regarding real estate and finance at NYU's Schack Institute of Real Estate.
Haghani has published numerous articles about the auction process in the New York Real Estate Journal, Northeast Real Estate Business Magazine and Celebrity Society. He was recognized in 2008 by Real Estate New York as one of New York's "30 Under 30": The Best and the Brightest of New York Metro Commercial Real Estate's Next Generation."
Scott Burman
Burman has been in the real estate industry for nine years as an owner/developer and a principal of The Engel Burman Group, a real estate development and construction company specializing in the senior housing sector. The company, which has developed over $1 billion worth of property since its inception in 1999, founded the Bristal Assisted Living chain on Long Island and has built, owned and managed thousands of condominium units and millions of square feet of retail, office, industrial buildings and nursing homes in the tri-state area and throughout the East Coast.
Burman has been an integral part of the Engel Burman Group's business development and operations since he joined the company in 2001. He specializes in planning, acquisitions and financing and has spearheaded an array of transactions of various product types and sizes including large scale residential developments, assisted living facilities and large industrial and office portfolio acquisitions and dispositions with values totaling in the hundreds of millions of dollars.
Burman has served as a principal in real estate investment and development transactions throughout the New York metro area where he gained extensive experience, a unique perspective and comprehensive insight into the real estate auction business and its process.
Burman received a Bachelor of Science in Finance and Marketing from NYU's Stern School of Business.
Burman is an executive board member for the Long Island Real Estate Group and is a co-founder of their "New Generation" division. He is also the recipient of the Long Island Business News' 2010 Award for "Rising Star in Commercial Development."
About Cardinal Investments
Cardinal Investments was founded by Kyle Ransford and Christian Heger in 2001. The company focuses on the development and rehabilitation of commercial, residential and resort properties.
The projects that Cardinal Investments creates are defined by their environment, community and a commitment to maintaining the sense of place within each location. Their focus on value through design and detailed quality distinguishes Cardinal Investments in the industry.
The company's strict attention to detail, innovative quality design and creativity while maintaining the integrity of each location, has allowed the company to grow tremendously over the last four years with offices in Los Angeles, New York and Fiji.
The company was formed as an investment vehicle for growing real estate holdings. Today the principals still invest 95% of their net worth in the company's transactions. They continue to seek out dynamic opportunities in select markets.
Paramount/press releases/ m127 auction draws big turnout/First Developer Auction of a Manhattan Condominium in Almost 20 Years Draws Big—June 27, 2010 Tags: