As a potential seller in the next 18-24 mos, I really have no problem with “bulk sales” by REITs. If any of them are able to make a similar deal in SD Co (even for 50 properties at a time, instead of 699) this takes distressed properties off the lenders who might otherwise list them as REOs.
I’m wondering if these “bulk” purchases are even reported as individual “sold comps” by the assessor. I would guess no. Obviously, the assessor’s Change of Ownership form filed by Fannie and/or the REIT’s escrow officer is going to indicate “bulk sale” on each and every parcel affected.
Practically speaking, if it is reported this way, these (discounted) properties’ sold prices will not affect their surrounding “sold comps” for appraisal purposes. And they will also have the effect of taking shadow inventory off the market, likely permanently. And it might spur more lenders to foreclose in order to stockpile properties for bulk sales, which are a faster way of getting them “off their books.”