Facing foreclosure, Madison Avenue condo sells out remaining units at auction

June 28, 2010 08:30AM

127 Madison Avenue (photo: CityRealty)

The last six apartments at the 12-story M127 condo — which had been on the brink of foreclosure after a failed sales attempt — sold out at a Roosevelt Hotel auction yesterday in a little more than an hour, according to the Wall Street Journal. It was the first successful auction by a Manhattan developer — Cardinal Investments — in over two decades, said Misha Haghani of Paramount Realty USA, who ran the event. More than 100 registered bidders attended, and winners paid an average of $840 per square foot for the apartments — a major discount. A 1,577-square-foot apartment sold for $1.24 million, 25 percent less than what a similar apartment fetched in 2008. Cardinal, which had sold only three units in the nine-unit building at 127 Madison Avenue in early 2008 and had nearly $9 million in debt on the property, yanked the remaining six homes from the market during the downturn. As The Real Deal reported last year, Cardinal was illegally renting those homes in the interim to short-term and extended-stay hotel guests. [WSJ]