From left: Bid on the City co-founder Vlad Sapozhnikov, Paramount Realty USA co-founder Misha Haghani and 552 West 43rd Street, where Paramount is conducting an auction

With the steady stream of distressed residential properties in New York City, foreclosure auctions have dominated recession-era headlines. But auctions at non-distressed properties have also gained prominence throughout the recession, especially among developers looking to unload remaining units in a new project.

But with many industry experts ready to tie auctioneers’ success to antsy sellers and developers, some wonder whether they can sustain momentum in a slowly stabilizing market, as auctioneers try to evade the stigma that pigeon-holes their business as a “last-ditch” approach to sales.

Misha Haghani, co-founder and a principal at real estate auction company Paramount Realty USA, said he’s optimistic that this market is a turning point for the industry, with more sellers viewing auctions as a viable sales tactic.
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While residential property auctions have long been associated with distressed properties, some real estate professionals are now testing them on regular apartments that are simply not selling that fast. On this week’s Webcast, The Real Deal’s Sara Polsky checks out one of the first Manhattan property auctions to provide an alternative to the normal brokerage process. Bid on the City, which operates out of a Fifth Avenue storefront, put five properties — with starting bids ranging from $299,000 to $1.13 million — on the auction block last weekend. The Real Deal spoke to all the major players at the auction and got the results. To watch the full Webcast, click on the video above.