B.C. condo units sold at auction
Lake Windermere Pointe project
ACalgary developer was able to rid itself of $8 million worth of debt following a one-day auction of condo units at its B.C. recreation property development.
Pointe of View Developments put 40 units from its Lake Windermere Pointe in Invermere, B.C. on the auction block.
It was able to find buyers for 33 of them within two hours, says CEO Randy Klapstein. “They sold for less than we had hoped for, so people got some pretty good deals,” he says.
Klapstein says the money raised from the auction will go right to paying down part of the company’s debts.
The average selling price of the condos, mostly two-bedroom units, was about $215 per square foot, he says — adding it was well below the retail price being offered for the units that ranged in size from 807 to 1,257 square feet.
“The lowest price we got was $136,000,” says Klapstein. “But I guess we did pretty well.”
There were 400 bidders vying for the condos at the lakefront development, says Rhett Winchell, president of Kennedy Wilson Auction Group,
“Our pro-active marketing and sales approach is a proven way of selling real estate in today’s market and changing economic conditions,” he says. “This auction benefited both the buyers and the seller. It was a win-win situation.”
Prior to the beginning of the afternoon auction, which was held at the Westin Hotel in downtown Calgary, Klapstein said the company was “very motivated” to sell the units because of a commitment he made to his lender to reduce debt.
“This auction is not about making a profit, it’s about reducing debt, getting some equity and moving forward,” he said at the time.
Like other resort developers, Pointe of View was caught by the economic slowdown as buyers moved to the sidelines to wait for better times.
Klapstein says the real estate market for the past while has generally been challenging — and the resort market has been even more so.
“It’s been a frustrating time for us, but it’s all coming back,” he says.
The results of the auction will give the company “some comfort over the winter” before it gets back to planning future activity in the spring, he says.
Randy Klapstein of Pointe of View Developments.