B.C. condo units sold at auc­tion

Lake Win­der­mere Pointe project

Calgary Herald New Condos - - Recreation & Investment Properties - MARTY HOPE

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.

Cal­gary Her­ald Archive

Randy Klap­stein of Pointe of View De­vel­op­ments.

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