Scannapieco said he was particularly interested in yesterday's results because he owns a condominium tower at the Shore - the Bella in Atlantic City - that targets the same market as the Murano, and where sales have lagged this year.
The Murano auction could be the spark plug to the Philadelphia condo market, said real estate lawyer Gary Krimstock, who represents most of the luxury condominium buildings in Center City, including Society Hill Towers, the Philadelphian, Symphony House, and the Dorchester.
"I think this will certainly start interest by other developers in auction sales as a form of marketing in a difficult recession economy," said Krimstock, who specializes in condominium-association law. "It's a better alternative than the developer and the condo association running out of money and not being able to keep the electricity on."
Randall L. Scott, executive vice president of Thomas Properties Group - the Murano's owner - said that was the strategy behind yesterday's auction: to move a chunk of the 178 remaining unsold units fairly quickly.
"We are very pleased with the volume," he said. "Naturally, the product is worth more than what buyers think it's worth, but that's because of the disconnect in the market.
"Rather than carrying the units, paying the debt service, condo fees, and so forth, it became more efficient for us to pass those savings to buyers," he said. "We view the auction as a deciding event to allow us to understand where buyers value our product.
"The market spoke today."
Scott said the remaining 136 unsold units at the Murano would be priced based on what similar units went for yesterday. That pricing will start immediately, he said.
Gillen said the people who would likely be most upset are those that bought at the Murano recently.
"When that many units change hands at a significant discount, it sets the market," he said. "Recent buyers could see paper losses on their purchase of $100,000 or more. For many, that could be enough to put them upside-down on their purchase."
On the plus side, Gollinger said, there were now more owners in the Murano, who will be paying their condo fees to help operate and maintain the property.
"The most important thing is they have a building full of homeowners," said Gollinger, "and one which affords them a wonderful lifestyle."
That kind of lifestyle is what the Williamses bought into. They got their first peek of their $513,000 purchase yesterday.
"That view is magnificent," Jill Williams said.
Contact staff writer Suzette Parmley at 215-854-2594 or sparmley@phillynews.com.
