Some Great Deals at Today’s Real Estate Auction!!!

December 15, 2007 by Lucas Lechuga

I wasn’t able to attend this morning’s real estate auction, held at the Miami Beach Convention Center, but did learn the results of several condos that were auctioned. From what I’ve heard, there were more people in attendance at this auction than the Hudson & Marshall auction held on October 21, 2007, which I did attend. However, properties auctioned today sold for much less.

Below are the results of some of the condos that were auctioned this morning:

  • Courvoisier Courts – Unit 2312 – 3/2.5 – 1,655 SF (Brickell Key) – $540,000
  • Isola – Unit 1509 – 1/1 – 735 SF – (Brickell Key) – $185,000
  • Jade at Brickell Bay – Unit 502 – 2/2 – 1,460 SF – (Brickell) – $625,000
  • Jade at Brickell Bay – BL45 – 2/3 – 1,730 SF (Brickell) – $735,000
  • Murano Grande – Unit 805 – 2/2 – 1,400 SF (South Beach) – Withdrawn
  • Neo Lofts – Unit 1006 – 2/2 – 1,109 SF (Miami River) – $185,000
  • Ocean View – Unit 210 – 1/1.5 – 1,005 SF (Sunny Isles Beach) – $140,000
  • Ocean View – Unit 909 – 1/1.5 – 1,005 SF (Sunny Isles Beach) – $160,000
  • The Club at Brickell Bay – Unit 2114 – 1/1 – 818 SF (Brickell) – $180,000
  • The Club at Brickell Bay – Unit 2603 – 1/1 – 825 SF (Brickell) – $175,000
  • The Club at Brickell Bay – Unit 3102 – 3/2 – 1,232 SF (Brickell) – $225,000
  • The Club at Brickell Bay – Unit 3202 – 3/2 – 1,232 SF (Brickell) – $270,000
  • The Cosmopolitan – Unit 2603 – 2/2 – 1,010 SF (South Beach) – $405,000
  • Vue at Brickell – Unit 811 – 1/1.5 – 796 SF (Brickell) – $180,000
  • Vue at Brickell – Unit 3606 – 3/2 – 1,551 SF (Brickell) – $290,000

It’s interesting to note that the units at The Club at Brickell Bay and Vue at Brickell sold in the range of $187-$226 per square foot. I think we’ll be seeing much more of this in the months to come. The high bidders of the units in these two buildings at the Hudson & Marshall auction simply overpaid.

The two units at Jade sold for around $425 per square foot. I think the BL45 unit is a terrific buy!

In June of this year, I submitted an offer of $440,000 for a client on unit 2603 at The Cosmopolitan when it was a short-sale. The bank rejected our offer. We were prepared to close within 30 days. It sold today for $405,000. This happens all the time! It really frustrates me which I why I rarely will deal with a short-sale. Banks just don’t get it yet! It’s a better use of my time to wait until the bank takes it back and have my client buy it for much less.

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53 Comments on "Some Great Deals at Today’s Real Estate Auction!!!"


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Anonymous
Jack
8 years 9 months ago

Lucas,

Is there a place where we can get ALL results for the AUCTION? If not, do you know how much the units in “Turnberry on the Green” in Aventura – Item #: 114 & 115 went for? Any info would be greatly appreciated?

Thanks, Jack

Anonymous
8 years 9 months ago

Jack,

The auction house’s website is http://www.ushomeauction.com. They don’t have the results on their site yet and I’m not even sure if they plan to but you may want to take a look in a few days. I’m pretty sure though that someone will tell you right here in a comment by tomorrow or Monday.

Anonymous
8 years 9 months ago

i wish i had enough money to buy one of these house …just kidding . thx for your share ….

Anonymous
Blanca
8 years 9 months ago

Hola Lucas,

Is there an Auction in the Fort Lauderdale area. I am interested.

Thanks
Blanca

Anonymous
Jaime
8 years 9 months ago

Miami River prices are affordable for the average potential homeowner. Brickell and Sobe still have a ways to fall.

Anonymous
Rudy
8 years 9 months ago

Lucas,

The two units at Jade sold for almost half their last sale prices (based on the last sale price information at the Miami Dade Appraiser’s website). How will these prices impact property taxes? Will future property taxes be based on the latest sale prices and will be substantially lower?

Thanks.

PS. You’ve a great blog!

Anonymous
MiamiBlue
8 years 9 months ago

I’m new to this auction business. For these units to get auctioned, are they purchased by a private buyer then foreclosed by the bank? Or these coming from developers?

Anonymous
Mauricio
8 years 9 months ago

Lucas,

I was in shock of how much Neo Lofts went for. I had an apartment there which was 820 sq ft. and paid $275K four years ago. Thanks for the info on this auction. Do you know of any other auctions coming up?

Anonymous
Sean
8 years 9 months ago
Hi Lucas, I would have loved to have attended this auction and I likely would have bid on several units at these prices; however I live about 3 miles from the convention center and had no idea there would be an auction yesterday? I follow your blog very closely via RSS and I don’t recall that you mentioned it prior to now. Maybe you did and I missed it? It would be awesome if you could put up a reminder post before future auctions or registration deadlines. Your blog is top notch and the best I’ve seen covering the Miami… Read more »
Anonymous
JM
8 years 9 months ago
To put these numbers in perspective: (1) Vue (2 units) – avg P/SF at auction: $200; avg listing price per Lucas’s latest index on the building (“ALP”): $441. Discount: 55%. (2) Cosmopolitan (1 unit) – PSF @ auction: $401; ALP: $579; Discount: 31%. (3) Jade (2 units) – PSF @ auction: $426. ALP: $798. Discount: 47%. (4) Courvoisier (1 unit) – PSF @ auction: $326; ALP: $460; Discount: 29%. (5) Isola (1 unit) – PSF @ auction: $252; ALP: $510; Discount: 51%. I can’t comment on the Club at Brickell, since Lucas threw it off his index in disgust a… Read more »
Anonymous
JM
8 years 9 months ago

Lucas, I second Sean’s motion about advertising these auctions ahead of time – if you did, forgive me, but I don’t recall seeing this mentioned until it was over.

Anonymous
8 years 9 months ago

JM – I didn’t throw The Club at Brickell Bay off the index. I threw The Sail on Brickell off the index.

Sean & JM – I wrote a post about this auction on November 18th.

Anonymous
JM
8 years 9 months ago
Rudy: I’ve had this problem in the past, owning a unit that is way over-appraised. Miami-Dade went mad a year ago, increasing the assessed value of every unit I owned by 60%. (Way to go on the timing, M-D!!) Lucas can probably advise you better on this, but my experience has been that if you are homesteaded, the judges won’t consider an appeal. If it’s an investment unit, you can be much more successful at appealing appraisals. I doubt the judge will bring it down to the auction level, but you can certainly reduce your tax bill. One company I… Read more »
Anonymous
JM
8 years 9 months ago
Sorry, Lucas, both about missing the Nov 18th post and my mistake on the Club. To amend my earlier post, add: Club @ Brickell (4 units): PSF @ auction: $207; ALP: $550; Discount: 38%. And we now have 11 condos (assuming these sales are final) that sold, in the aggregate, at 50% below ALP. Even better! Plus, that would be 11 closings in the next month, not insubstantial compared to the 26 closings across all three of your indexes in November. I know there have been other contracts signed in the last month. This market needs activity. Are these sales… Read more »
Anonymous
Sylvia
8 years 9 months ago

Lucas,
Next time there is an action I’d like to bid on a unit.Actually I’d like you to bid on a unit for me. How can we arrange it for you to represent me? What is the procedure? I’m real new to this.
Thank you.

Anonymous
BFG
8 years 9 months ago
Does anyone have any data on the historical cost-to-own vs cost-to-rent ratio for top-end condos in Miami? The reason I’m asking is that even though that unit at Jade on Brickell (BL45) sold way below its previous price, the cost to own (by my rough calculations) comes out to around $7500/month. I don’t doubt that there is some premium to owning vs renting in these ultra high-end condos, but I’m just curious what that number is. I believe something like this unit would rent for no more than $4000/month. Normally I would say that if the cost to own exceeds… Read more »
Anonymous
Rudy
8 years 9 months ago

Thanks, JM. That’s very helpful.

Anonymous
Robin
8 years 9 months ago
BFG – Yes I’d love to know the same thing. I’m considering a 1/1.5 mid-range condo in Broward right now. It’s listed for $230,000 for about 950 sq. feet in a newly completed building. It has nice views, marble, granite, stainless steel, etc. There are similar units renting for about $1,450. On $230,000, the principal and interest would be about $1,400 alone – then when you factor in taxes and maintenance, you’re probably looking at upwards of $2,100 or so carrying costs. From what I’ve heard, the carrying costs should be about 110% of the cost to rent (i.e. if… Read more »
Anonymous
Blanca
8 years 9 months ago

Thanks for the info Robin. I’m interested in a condo (auction and/or sale etc.) in the Broward area. Information is very helpful.

Thanks

Anonymous
8 years 9 months ago

Those units at Jade sold cheap!! Does anyone know how much the maintenance is at that building?

Anonymous
gus abalo
8 years 9 months ago

does anyone know how much the homes in coral gables went for

645 madeira
233 romano
??????

Anonymous
Sbki
8 years 9 months ago

Did the bank take the highest bid or can they still reject them?

Anonymous
Juan GM
8 years 9 months ago
This is merely the tip of the iceberg; there will be plenty of foreclosures in the upcoming year; below is a summary of the unit inventory either on the market at the moment, or coming up withing the next 12 to 24 months. (excluding Brickell Key) 500 Brickell Avenue 633 Brickell on the River North 384 Brickell on the River South 319 The Avenue 570 Solaris 138 Plaza on Brickell (One) 440 Plaza on Brickell (Two) 500 The Sail 152 Lattitude 427 Met One 447 Wind 489 Ivy 498 Mint 602 Cima 471 Capital 832 Axis 718 Emerald 120 Icon… Read more »
Anonymous
8 years 9 months ago

JM,

The buyer’s premium was 5%. From what I heard all of the above condos were final sales and not contingent upon bank review. There were some other properties auctioned that day that were contingent upon bank review but not the ones above from what I heard.

Anonymous
8 years 9 months ago

Wow there are some really amazing deals in that list. I wish I had the resources to snatch up a great investment prop like these!

Anonymous
Raul
8 years 9 months ago

The best thing to note about this auction is that there are plenty of interested buyers for this market…same can not be said for other areas of Florida!

Anonymous
JM
8 years 9 months ago
Robin, Regarding renting vs. buying (after taxing into account the tax deductions for mortgage and property taxes): I read somewhere that a 20% spread was a typical premium. Besides being able to finish the unit the way you want to and not worrying about moving every 12 months, the big advantage of owning is price “protection” (I’m putting that in quotes, because folks who bought here in 2005-2006 have negative equity). For example, I sold a condo in NYC in 2000 for $525k; today (NYC is a much healthier market), the unit sells for $1.3m. (Yes, you may point at… Read more »
Anonymous
JM
8 years 9 months ago
Lucas, wow, if those sales are final, I can’t wait to see the January indexes! (Assuming they can’t close by Y/E). P.S., I’m with Sylvia. Next time there is an auction, I’d like to go with you representing me. One problem I have had in the past (and again, this is probably due to my overlooking an earlier post) is that by the time it dawns on me that an auction is about to happen, I don’t have time to do my due diligence, let alone transfer funds over to my interest-free checking account to cover the deposit. I need… Read more »
Anonymous
JM
8 years 9 months ago

AlexG: My completely unscientific study (5 units where I could see the SF and the maintenance; there were more, but I’m too lazy since I can’t afford the Jade) shows that maintenance PSF at Jade runs around 75c/mo. Ouch.

For example, there’s a 1BR 895 SF apt listed with monthly maintenance of $700 (78 cents). Hope this helps.

Anonymous
8 years 9 months ago

JM – The problem is that the sales from the auction won’t hit the January indexes because these did not go through the MLS. These are private sales. The figures from my index are derived from MLS figures.

Anonymous
Carlos
8 years 9 months ago

How is it that in a new building that is 2 years old, does the building have pay for these repairs? (JM’s comment) Doesnt the contractor have some sort of line item in the contract with the developer that guarantees their work for a period of time?

Anonymous
JM
8 years 9 months ago

Lucas, well, I learn something every day on your blog. You can’t include these sales on your indexes – wow. Don’t they show up on the M-D property site?

Anonymous
8 years 9 months ago

JM – Yes, they do show up on the Miami-Dade website but there can be big delays in having them show up on the site and there isn’t an easy way of extracting the numbers. At least I don’t know of one.

Anonymous
JM
8 years 9 months ago
Carlos, I don’t know why. I should have thought that the buyers could have sued the developer, and for all I know, they can. I’m renting in the Cosmopolitan. I’ve been here nine months. All I know is the pool has been closed off and resurfaced, the “grand staircase” cordoned off, they intend to resurface all the elevator floors, they had to shut the lobby off for a few days because it wasn’t sealed properly, and the carpets in the hallways get dirtier than a no-tell motel. I’ve only been here nine months, however, so something else could go wrong.… Read more »
Anonymous
8 years 9 months ago
Do these prices include the 5% fee or should we add 5% to the sales price for the auction fee? These prices these early on scare me, If you look at miamidade.gov and cross reference the last sale of those units to what they sold at the Auction you are looing at 31-40 cents on the dollar from late 2005/ early 2006 Prices, for example at the Jade unit 502 last sold for $1,500,000 and it traded at the auction for $625,000 or at 41.6 cents and for the CLub at Brickell Bay unt 3102 last sold for $600,000 and… Read more »
Anonymous
Perez
8 years 9 months ago
Come on people … chill … these aren’t purchase prices, read the fine print, below; these are just low ball offers, doubt any will be accepted. And now for the fine print: “Subject to Confirmation. In the event the winning bid amount is not immediately accepted by the Seller, the Auctioneer will inform the Winning Bidder that acceptance of their winning bid amount is “subject to confirmation.” Winning Bidder acknowledges and agrees that Winning Bidder’s purchase is subject to, and contingent upon, the REO management of Seller approving the purchase, which shall be given or denied at their sole and… Read more »
Anonymous
8 years 9 months ago

Perez – I didn’t attend the auction but I heard that once the round of bidding was over the auctioneer would say whether or not the high bid would be contingent upon bank review. If he didn’t say anything then that meant that the bank would accept the offer. I was told that nothing was said after the above condos were auctioned. I know somebody that won one of the condos above.

Anonymous
8 years 9 months ago

Starting Bid at the REO at Murano Grande was $399,000 I wonder what it went to before the offer was withdrawn, what does withdrawn mean here that they didnt aprove the amount? or that it didnt meet the reserve? or that no one bidded?

Anonymous
8 years 9 months ago

Alejandro – I was told that the condo at the Murano Grande never went up for auction. I’m guessing that someone made an offer on it that the bank accepted before the day of the auction.

Anonymous
gus
8 years 9 months ago

perez –

did you go to the auction
any word on the coral gables homes??

Anonymous
8 years 9 months ago

Does anyone know what Sunny Isles units went for?

Anonymous
8 years 9 months ago

You have to keep in mind that Vue at Brickell, The Club at Brickell Bay and Jade were all ridden with mortgage fraud. Prices in these buildings, including list prices, have been affected. Additionally, most of the units at Vue at Brickell and The Club at Brickell Bay were in bad shape. The building’s themselves were in pretty bad shape themselves.

JM – By the way, above you wrote that The Club at Brickell Bay sold at a 38% discount. It should be a 62% discount.

Anonymous
8 years 9 months ago

Do these prices reflect the 5% charge that the auction house charges you ? Should we just add 5% to all these prices?

Anonymous
sf
8 years 9 months ago

The prices listed were the bid price. Add 5% to get the contract price

Anonymous
JM
8 years 9 months ago
Lucas, totally sorry if I screwed up the numbers on the Club – I’ll take your word for it. Hey, it just makes the auction results even more astounding and encouraging. I’d like to go back to your comment that anything that doesn’t sell via the MLS won’t show in the numbers. I understand why you can’t do this; searching the MD site is exhausting. However, if you exlude the 11 most recent and relevant sales from your indexes, in a market where we all agree that activity is so low, sales points mean nothing: well, aren’t you understating the… Read more »
Anonymous
tom
8 years 9 months ago
Alejandro, In regards to your comment on the $1.5MM unit in the Jade that went for $625k. It was never a $1.5MM unit. The reason it got into the bank’s hands is that someone flipped to a straw buyer and defrauded the bank at that inflated amount– then walked away form it. It was always a $625K unit… probably around what it was sold for before it was re-sold a few times in between a few related buyers. Don’t believe any of the comps you see in the buildings Lucas mentions above (and probably many, many others). Also, don’t know… Read more »
Anonymous
8 years 9 months ago
JM – I decided 2-3 weeks ago that I’m not going to charge for content after the New Year. I know that there are tons of investment groups that would pay for some sort of premium service but the potential buyer leads that I may lose from doing so wouldn’t be worth it. It would also mean that I would be committed to providing this information each month in a timely manner. You are correct that it would make for a much more informative index if all sales were included. However, as I mentioned it would be nearly impossible to… Read more »
Anonymous
8 years 9 months ago

I understand that the $1.5M apartment at Jade was most likely fraud, but if you look at the comparables all the other listings like that on the MLX are in the $800,000-$2,600,000 (for the BL 54) range and there are 42 apartments available so these still sold at a significant discount. I would have had to see the actual units to see if these really were great deals or not but just looking at the numbers I can tell that they all sold for under market value, if we refer to market value as the asking or listing comparable prices…

Anonymous
8 years 9 months ago

There should be a blog after and if an association files for chapter 11 as to what happens, I know its similar to the Villa Regina write up but its different because it would have to do with the present not what happened in the early 80’s which was very different as the construction boom wasnt of the same magnitude

Anonymous
joe
8 years 9 months ago
For some of the folks out there that don’t take time to crunch numbers: regardless of how you slice it—condos today are for end users only and not for investors who can’t take a loss for a few years. you can’t possibly have positive cash flow when you are financing a property when you add in taxes and condo fees you would have to rent a unit for $3000 a month if you bought it for $300,000 in order to make a profit. And it would be impossible to flip a unit in the next 3 years and try to… Read more »
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