..."In normal market circumstances you typically don't see auctions. But with what's happened in the last year and a half, it's anything but normal," said Dr. Gary Painter, director of research for the USC Lusk Center for Real Estate.
"So a lot of real estate developers are finding themselves with the need to have sufficient cash flow either to finish projects or start other projects," he said.
Under pressure to generate some cash flow, a developer may decide that an auction is the best strategy to move a project forward, he said.
"When you're in a down market, the lender and developer have the same incentives; they both want to be able to get as much money out of the project as they possibly can. Time is money also, so the sooner they get the money the better," he said.