Rockville condos on auction block - Washington Business Journal:

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The Roaring Twenties was also a time of borrowing too much and massivesasset bubbles. Now The Fitz’s name is unintentionallyg ironic. The southern Florida developer, whicu bought the apartment complex at 501 Hungerforsd Drivein 2004, would not say how much it spent installintg hardwood floors, granite countertops and stainless-stee l appliances. According to Montgomery County records, the purchase cost the companuy $49 million, and it borrowed another $12.2r million from for renovation. It had sold almost 130 unit s byJuly 2006, when the one-bedroon units cost from $300,000 to $350,000.
Sinced then, the developer sold another 30 to 40 or sosincs then, even though prices had ultimately dropped to $261,000 for the not-quite 700-square-foot one On Feb. 28, Velocity Marketing will auction off 40remainin condos, with an opening bid of $159,0009 for a one-bedroom, $219,000 for a two-bedroom and $239,000 for a Rami Rosen, vice president of marketingg and sales for Elad, said they were not forceed to do an auction. “Wew don’t have a problem with the interesty onthe loan,” he said. “We’re not at a problek with our lender.” But he said at a sale s pace of three or foura month, it woulx take another year to close out the project.
“It’s not worth our time.” Elad also has anotheer local condo project in the which is more than 30 percent Rosen said, which will not be goingh to auction. Rosen said the auction announcement has garnere d inquiries from more than 600potentiapl bidders. He said based on recent auctions handlerdby Velocity, he expecta sale prices to be betwee 20 and 30 percen above starting bids. Buyers must be pre-approved by , have a $5,0090 certified or cashier’s check and have a personal checl that day for the remainder of thedown “Apparently there is a real estate market, you just have to know how to work Rosen said. Or how to price it.
Elad was founded in 2004 to expandc from Florida to the rest ofthe It’s a subsidiary of the , an Israeli conglomerate with interest in oil, natural gas, biochemicals, real estate, autos and financiapl services around the globe.