Auction Sells 62 Units - Simultaneously

Sixty-two of 79 newly renovated lofts in the historic Rowan building in downtown Los Angeles sold for a total $21.8 million on Feb. 8 in the largest-ever simultaneous electronic auction of residential properties. Winning bids ranged from $207,000 for a studio to $534,000 for a two-bedroom/two-bathroom penthouse loft. Unlike conventional auctions, where items are sold one after another in a high-pressure environment with the auctioneer calling the shots, the Intellimarket Internet-based auction system used at the Rowan sells all units simultaneously with the bidders determining the auction's pace and length. At the Rowan, bidders were able to see the amount others were offering for every unit on large bidding screens or on their own computers through a secure website. The auction clock reset every time a new bid was received so bidders had ample time to consider their next step. The auction ended when there had not been a bid submitted on any of the properties for five minutes, or about three hours after its start. More than 250 pre-qualified buyers registered to participate. "The success of this auction confirms that there are plenty of prospective buyers sitting on the sidelines because they are uncertain of values in this real estate market," said William R. Stevenson, president of Intelligent Market Systems, which developed the proprietary software used in the auction.