Sunday's auction of 32 condos in West, the 17-story building in downtown Raleigh's Glenwood South, was the latest strategic maneuver in a marketplace where a handful of projects are going after a shrinking number of prospective buyers.
West's developer, Gregg Sandreuter, said after the auction that he likely plans to raise prices after the first of the year once the project commences selling its remaining units.
West essentially made a calculated risk: Instead of continuing to plod along and sell one or two units a month for the foreseeable future, it chose to sell a bulk of units at a discount and take the $8 million in one-day sales.
That money allows West some breathing room. It can now hold off reducing prices with the hope that the market will improve by the spring.
West's competitors are clearly hoping to exploit the auction for their own gain by raising questions about the 170-unit project's financial health.
222 Glenwood ran a full-page ad in the News & Observer on Saturday that said: "After the Auction ... COME SEE WHAT SUCCESS LOOKS LIKE ON GLENWOOD SOUTH."
The ad went on to say that 222 Glenwood has sold 70 percent of its units and has paid off its bank.