Tom Hunter of Sperry Van Ness Interstate Auction tallies bids. (David Boraks photo)

The owners of a 26-unit condominium project off South Main Street put 17 units up for auction Saturday, and sold at least five for $120,000 to $125,000 each, plus a 10 percent “buyer’s premium” – about half the units’ previous asking prices.

About 60 bidders registered for the 11 a.m. auction, held at Campania Cafe, in South Main Square. They ranged from young professionals and retirees to real estate agents and investors eager for bargains on the 2-bedroom flats and townhomes.

Martin Grimes Development LLC, owner of The Condos in South Main Square, had announced the auction last month, saying it appeared to be the best way to jump-start sales amid a slow market and tight credit. The units previously were on the market at prices up to $245,000. A handful had previously sold for between $198,500 and $248,000, according to county real estate sales records.

In the end, five units were sold in an absolute auction, at whatever prices generated in the open outcry bidding – three for $120,000, one for $122,000 and one for $125,000.

The other 12 units were auctioned subject to approval of the owner’s lenders, who have the right to reject bids they don’t like. Initially, bidding set prices for those units as low as $77,000, with many below $100,000. But after a midday break, representatives from auctioneers Sperry Van Ness Interstate Auction Co. told would-be buyers that the owners’ banker had ruled out bids below $120,000.

“We didn’t want to take your time to write contracts if we knew they weren’t going to be accepted. … We have a strong indication that numbers above 120 will,” a representative of the auctioneer told bidders.

That angered and disappointed bidders. “That’s not what you said,” said one man, who left shortly afterward.

Only four of the other 12 units attracted prices $120,000 or above. Sperry Van Ness officials said the owners’ bankers would meet Monday or Tuesday to decide whether to accept the remaining four bids – three for $120,000 and one for $125,000.

The other units will be back on the market.

The condos include balconies, hardwood floors, granite counter tops, nine-foot ceilings, and “many upgrades,” according to the auctioneers. There are two types of units: 2½ bath town homes and smaller 2-bath flats.

The Condos in South Main Square.