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$3.2 Million Bid for 6,000 Foreclosed Properties in Detroit Auction

Karin Weise reports that an anonymous bidder will pay $3.2 million to purchase 6,000 foreclose homes in Detroit.
October 27, 2014, 9am PDT | James Brasuell | @CasualBrasuell
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Justin Hollander

An auction on foreclosed properties fetched a mysterious bid—$3.2 million for 6,000 homes—in Detroit, but the bonanza has provoked curious reactions about how the bidder intends to turn a profit on the purchase.

In fact, according to Weise's coverage, the auction was set up with an assumption that no one would buy any of the properties, thus transferring the properties to the city.

"A closer look at the so-called blight bundle (PDF) created for the auction makes it clear why that auction is no bargain. The parcel includes roughly 3,000 properties that need to be torn down, plus some 2,000 empty lots, plus about 1,000 homes that are believed to hold some value. Everything is sold as is: The homes may lack furnaces or wiring and they may come with mold, tenants, or both."

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Published on Friday, October 24, 2014 in Business Week
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