Developers Renting Their Inventory as a Last Resort
On Friday, the Daily Business Review published an article entitled, “Condominiums: Holding Pattern”. The article points out that several developers of recently completed condo developments have opted to rent their unsold or defaulted inventory to remain afloat.
The question that resounds throughout the article is whether or not this approach makes economic sense for these developers. Their hope is that the rental income earned will buy them time until the market rebounds.
The Midtown Miami development lies at the forefront of the article. Midtown 2 has had considerable problems with closings since they began in May of this year. As stated in the article, I have found only 179 closings for their 338 total units. The class-action lawsuit against the developer by contract holders certainly hasn’t helped matters. However, the root of the problem lies in the fact that the preconstruction prices offered by the developer were much too high for that neighborhood. Units were sold with a promise that the neighborhood would somehow be transformed within three short years. The reality is that the neighborhood is still at least another 3-5 years away from delivering on that promise. Initial prices at Midtown 2, and Midtown 4 for that matter, were higher than more desirable Brickell condo developments such as Plaza on Brickell, 500 Brickell and Axis.
Sandra de la Torre, a sales agent at Midtown Miami, stated in the article that 20 developer units were available for rent and 20-25 were available for sale. I highly doubt that this is the only inventory that the developer has in his possession, given that only 179 closings at Midtown 2 appear in public records. It is much more likely that at least 30 percent of the building will eventually be available for lease through the developer. I haven’t heard anything lately regarding the class-action lawsuit, so maybe it is still pending and a large portion of the unaccounted units can be tied to that.
Rental prices will need to be quite attractive at 2 Midtown in order for potential tenants to be enticed into signing a lease there. Many more options will become available for renters in the upcoming months in more desirable neighborhoods at attractive prices. In the Miami Arts District, The 1800 Club, in my opinion, will drive rental prices down throughout the neighborhood once closings begin and investors eventually opt to lease their units. The prices at The 1800 Club were quite attractive when sales were initially launched. This is one condo building where it might make economic sense for the developer to rent its remaining inventory. The neighborhood immediately surrounding The 1800 Club has a greater chance of rebounding within the next couple of years than that surrounding Midtown Miami. Vulture capital funds should keep a close eye on The 1800 Club because it could become the ideal development to invest in future months if prices dip below initial preconstruction prices.
Plaza on Brickell and Axis are two condo developments in Brickell that will drive down rental prices throughout the neighborhood once they are completed. Both were attractively priced and will ultimately provide Brickell renters with highly competitive rental prices. Both developments were backed by a high percentage of investors who will also likely lease their units to wait for the next upturn in the condo market.
The Sail on Brickell was also mentioned in the article as being another development that has sought to rent its remaining inventory. I was not aware that Renzi Development had failed to close on it 152 total units until I read this story. I wasn’t surprised, however, given that it is a second-tier condo development in Brickell that has been riddled by mortgage fraud. As a result, the Sail on Brickell will no longer be included in the Brickell Condo Index. It will eventually be replaced by Latitude on the River once it has closed on all of its units.
As for Midtown 2, I think they’ll be lucky to get rental rates of $1.75 per square foot. The “rent and wait” option doesn’t make economic sense for this development, in my opinion. The developers of the Sail on Brickell, which doesn’t reside on Brickell Avenue, will also have difficulties in making their rental numbers work. I think one bedrooms there will eventually rent for around $1,250 per month.
Bayfront Brickell Condo Foreclosure to Sell Below $200 Per Squar Foot?
I’ve been keeping a close eye on a 4 bedroom/4 bath split-level bank-owned condo at Atlantis on Brickell for quite some time. It has 2,628 square feet of interior living space and is located on the third floor. The price has continually been reduced throughout the months that I’ve kept an eye on it, but it now looks appealing. The list price on this unit is $559,900, or $213 per square foot, at the present time.
Below you will see the price changes since it was listed on May 16, 2007:
05/16/2007 – $799,900
06/13/2007 – $759,900
07/16/2007 – $719,900
08/03/2007 – $679,900
08/28/2007 – $644,900
09/25/2007 – $559,900
Unfortunately, the pictures that accompanied the listing are no longer available. I haven’t personally viewed this property yet, but the pictures that were previously available made it apparent that the unit definitely needed some TLC. A few people in my office did visit the unit about six weeks ago and did confirm that the unit does need much work. On the high end, a $170,820, or $65 per square foot, build-out project should make this unit into an A+ residence. A $500,000, or $190 per square foot, offer should seal the deal on this condo given the continual decrease in price every month. I’m sure that Deutsche Bank is growing tired of keeping this property on their books month after month.
A 3/3 with 2,171 square feet of interior space on the same floor at Atlantis on Brickell, which needs some work of its own, is currently listed on the MLS for $750,000, or $345 per square foot. Invest $65 per square foot to fully renovate the unit, with an overall price per square foot of $255, and you should do well.
Saturday Afternoon View of the Arts District
It was a gorgeous afternoon here in South Florida yesterday. I was heading west on the Venetian Causeway and was compelled to pull over after paying the toll. The developments along Biscayne Bay looked so magnificent from this view that I wanted to share it with my readers. (Especially those who aren’t local to Miami.)
Above, you will see the following developments from left to right: Venetia Condo (completed in 1980), Marriott Hotel, The Grand (completed in 1986), Opera Tower (completion by the end of this year), Bay Parc Plaza (rental building), The 1800 Club (completion by the end of this year), Quantum on the Bay (completion by the first quarter of 2008), Cite on the Bay (completed in 2004) andParamount Bay (completion by the first half of 2009).
On the northern half of the Arts District we have the following new developments: New Wave (completed in 2006), Star Lofts on the Bay (completed within the last three months), Onyx on the Bay (completed within the last three months), Platinum Condominium (completed within the last five months) and Blue Condominium (completed at the end of 2005).
The following is a close-up of The 1800 Club, Quantum on the Bay, Cite on the Bay and Paramount Bay:
The pictures above make the Edgewater look like a million bucks. It’s amazing what perspective can do. The reality is that the Arts District is still an up-and-coming neighborhood. Three years ago you wouldn’t dream about walking the streets after dark. The neighborhood has cleaned up a lot within the past three years but it’ll be another three years until somebody actually wants to walk the streets at night. The long-term outlook for the Arts District, however, is bright. The views from these bayfront buildings are amazing. In time, the neighborhood will blossom and it will become an attractive place to live. In the meantime, however, newly constructed condos in high-quality buildings are available at prices that don’t make sense for the neighborhood. Prices will come down and opportunities will emerge as the new condo supply far outpaces demand in the Arts District.
Video of the Platinum Condominium Auction
Today, I finally had a chance to edit, render and upload the video that I shot of the Platinum Condominium auction last Thursday. I split it up into three separate video files which highlight key points of the auction. You can read my analysis of the Platinum Condominium auction.
An explanation of how the auction would work:
Kicking off the auction with the condos in Pool B:
Changing the rules and moving to Pool A:
Star Lofts on the Bay – The Next Condo Development up for Auction?
Star Lofts on the Bay looks to me to be a prime candidate to have a developer closeout sale in the near future. Closings for units at Star Lofts on the Bay began towards the beginning of July. As of today, there have been a total of 18 recorded closings with the last one being recorded on August 14, 2007. Not one other unit has been recorded in over a month. I think it is safe to say that closings have slowed to a halt.
Star Lofts on the Bay is a boutique building with only 48 units in the entire building. The 18 recorded closings, however, indicates that 62.5 percent of the building has not closed. That is incredibly shocking!
There are currently a total of 14 units at Star Lofts on the Bay listed for sale in the MLS. Six of the units listed in the MLS, however, do not correspond with the units numbers of the ones that have closed. This means that either the units have closed but the records have not been updated to reflect this fact or these units were listed on the MLS without actually having closed on them. It is not uncommon to see condos listed on the MLS for sale prior to the contract holder closing on them. It’s not supposed to happen but it does. It can take up to three weeks for closings to be recorded so perhaps a few of these units closed within the past three weeks.
Below you will see the 18 units that have closed at Star Lofts on the Bay. Next to each unit number you will see the number of bedrooms for that unit, the purchase price and the current list price of the unit on the MLS.
As you can see, the preconstruction prices for units at Star Lofts on the Bay were very high and the price of units currently listed for sale are even higher. The average price per square foot of condos currently listed is over $540. Good luck getting that! If these units were to be auctioned, I don’t think anyone would pay more than $270 per square foot. The studio units might go for around $300 per square foot but that’s the only exception, in my opinion. The 2 bedrooms aren’t true two bedrooms. Because it is a loft building, the units are open without any walls to separate the bedrooms.
Star Lofts on the Bay is a waterfront building situated along Biscayne Bay at 700 NE 25 Street. It is located exactly five blocks south of Platinum Condominium. As is the case with Platinum Condominium, the neighborhood is the biggest deterrent for Star Lofts on the Bay. Most of the buildings in the area are old and run-down. You never want to build a mansion on a street full of average-sized single family homes. That is basically what happened here. Onyx on the Bay, which is the building next to Star Lofts on the Bay in the picture below, will also have this problem.
The picture slideshow below will show you some images that I found on the MLS of various units and the common areas of the building.
Miami Condo Auction a Big Disappointment
(The video that I shot of tonight’s auction is at the bottom of this post.)
The Platinum Condominium auction has come and passed. The big talk of the town packed the house with auction participants, brokers, reporters and spectators. If tonight was any indication of what lies ahead, then the Miami condo market is in for a rude awakening. Miami condo developers are in for a sleepless night if word about tonight’s auction reaches them before bedtime.
It was apparent from the first round of bidding that the developer of Platinum Condominium had high expectations and high prices in mind tonight. Many people realized that the rules of the auction were quickly changed once the first round of bidding was over. A HUGE mistake on the part of the developer, if you ask me. The auction house, or maybe the developer, decided to start the auction with Group B. A colossal mistake in itself, in my opinion. Group B was comprised of 2 bedroom + den/2 bath condos; the best batch of condos of the three groups. This should have been left for last. Anyone looking to bid on a one bedroom, and sit this round out, would be in a favorable position if the high bids on the units in group B came in low. That is exactly what happened.
The first round of bidding ended with a high bid of $295,000, considerably lower than the prices that people recently closed on condos through preconstruction contracts in 2004. The recent closing prices for 01 line units ranged from $422,000 to $515,000 while the 07 line units ranged from $407,000 to $555,000. The developer must have been shocked at the outcome of the first round. The likely choice for the highest bidder was to select either unit 2107 or 1201. However, the highest bidder was convinced to select an absolute unit since any other choice would not be approved by the developer immediately, if at all. That announcement wasn’t made publicly but sitting in the front row has its advantages. The bidder selected unit 1001.
The second round of bidding began and once again ended with a high bid of $295,000. The highest bidder also wanted one of the non-absolute units but was likewise steered towards an absolute unit. That bidder selected unit 1907. The same result occurred with the third highest bidder which amounted to $295,000 as well. That person selected $295,000.
The third round of bidding ended with the same result. The auctioneer made an announcement before proceeding with the fourth round of bidding. It was then publicly known that only absolute units would be auctioned at this time. The disappointment in the crowd was felt throughout the room. Two words seemed to form on the lips of people in attendance: “marketing ploy”. The crowd thinned-out thereafter.
The results of the first eight rounds of the auction are below:
1st Round: Unit 1001 – $295,000
2nd Round: Unit 1907 – $295,000
3rd Round: Unit 1607 – $295,000
4th Round: Unit 1602 – $200,000
5th Round: Unit 1806 – $175,000
6th Round: Loft-107 – $160,000
7th Round: Unit 301 – $320,000
8th Round: Unit 707 – $295,000
The 02 line had recent closings from preconstruction contracts that ranged from $235,000 to $345,000 while the 06 line ranged from $242,000 to $390,000. Two small lofts, equivalent to Loft-107, recently closed: one for $260,000 and the other for $267,500.
I think most still in attendance anticipated the auction to end after the 8th round. However, Group A was selected and another round of bidding began. It was quickly announced that the next unit chosen would also be absolute. Once again interest was restored by the crowd but failed to bring any noteworthy bids. The round ended with a high bid of $245,000. The highest bidder selected unit 1905, a 2 bedroom/2 bath condo.
The bidding commenced once again but it was announced that any high bids from thereon out would be subject to developer approval. Below you will find the results of the 9th through 16th rounds:
9th Round: Unit 1905 – $245,000 (Absolute)
10th Round: Unit 1705 – $230,000 (*)
11th Round: Unit 2102 – $185,000 (*)
12th Round: Unit 1201 – $300,000 (*)
13th Round: Unit 1101 – $300,000 (*)
14th Round: Unit 2107 – $265,000 (*)
15th Round: Unit 2007 – $265,000 (*)
16th Round: Unit 501 – $300,000 (*)
The asterisk (*) above indicates that those units were subject to approval from the developer. In other words, those weren’t officially sold.
9 condos sold tonight. 9 out of 20. Maybe a few others will sell once someone gives the developer a good kick in the noggin, but only 9 were officially approved tonight by the developer. I posted a poll along the side of my site a couple of nights ago to ask visitors how many condos they thought would get auctioned at tonight’s auction. The highest response was that all 20 of the units would get sold. What a huge disappointment.
The developer not only did a huge disservice to himself, but to the Miami condo market as well, by not allowing the condo auction to run its planned course. There were two stories that could have possibly emerged as a result of tonight’s event: (1) the auction was a tremendous success and confidence in the Miami condo market has been restored at a downwardly revised level, or (2) the auction was a disappointing failure and Miami condo developers should soon be seeing brown stains appear in their underpants. I can assure you that other Miami condo developers were keeping a close eye on tonight’s event. I think many of them saw the auction system as a last resort. But with their last resort being extinguished as a result of tonight’s disappointing outcome, what more can they count on?
The answer is simple, the banks. The Miami condo developers are not sitting alone in the condo glut that we are experiencing here in South Florida. The banks, and their shareholders, are ultimately the ones who will feel the brunt of the pain. If banks can’t rely on developers to utilize the auction system to successfully liquidate unsold or defaulted units then their only alternative is to take possession of the units that represent the portion of the building that has not closed. Ultimately, these properties will get sold for 50 cents on the dollar, or less, to large investment funds that can buy in blocks of $10M+.
My prediction is that the Miami condo market will have a holiday close-out sale in the winter months. It will “coincidentally” coincide with our peak-season when thousands of snow birds will flock to our tropical climes. More demand, but also extra inventory.
I am very curious to read what the reporters that attended tonight’s auction write about tonight’s event within the next couple of days. Will they have an optimistic perspective, a pessimistic take or an honest-to-goodness report like you’ve read here at the Miami Condo Investments Blog? We shall see.
The following video explains how the auction would work:
Kicking off the auction with Pool B:
Changing the rules and moving to Pool A:
The Results of Today’s Auction
Six properties were auctioned this afternoon. Five of them were condos and one was a single family home. A couple of weeks ago I wrote about four of the condos.
The auction was held in the back yard of the single family home that was being auctioned, located at 5900 NW 13 Avenue. The single family home was the first property to be auctioned and sold for $53,500. It was a 2 bedroom/1 bath with 622 square feet of interior space. The house was in pretty bad shape but it resides on a large corner lot with .149 acres.
The auctioneers decided that since the remaining properties to be auctioned were all condos they would make it “buyer’s choice”. This meant that the highest bidder got to choose from the remaining available condos. He or she also had the opportunity to buy multiple condos at the same purchase price.
The highest bid for the first round was $496,000. As expected, the bidder selected the 3 bedroom/2 bath townhouse in South Beach. I think the person paid fair market value for the property. I personally visited the townhouse this past weekend and it is in need of a lot of work to make it into a nice residence.
The second round of bidding ended with a high bid amount of $272,000. The bidder selected the one bedroom condo located at The Club at Brickell Bay. I was surprised that bidding went this high.
The highest bid for the third round was $230,500. The bidder selected the 1 bedroom/1 bath condo at Venetia Condo.
The 2 bedroom/1 bath condo at Blue Lagoon Condominiums was selected fourth with a high bid amount of $195,750.
The final condo to be selected was a 2 bedroom/2 bath at Grandview Palace located in North Bay Village. The high bid amount was $190,500.
Miami Condo Index – Brickell – September 2007
I received an email last week from a potential investor asking me if Miami is now safer than the “Miami Vice days” that he saw on TV. Indeed, the streets of Miami are much safer than they were 20 years ago, but the corruption that infested the city back then is still prevalent now.
Another month, another fraudulent transaction. I guess nobody cares. As I mentioned last month, the rumors are out there that a government agency is on the lookout for such activity but I’ve begun to lose hope that these rumors hold much water. If these rumors are true, then shame on them for allowing such activity to continue, and allowing the reputation of this city to be equated to that of which was prevalent in the 1980s. This past month, I’ve heard that an FBI agent is living at Vue at Brickell and Jade at Brickell Bay. I wouldn’t be surprised if one lives at The Club at Brickell Bay as well.
The continuance of fraudulent activity in Brickell has sickened me. The sooner that the Miami Herald, or some other major newspaper, goes public with this story, the better. The fraudulent activity just needs to stop. It is doing nobody any good to let the fraudulent activity prevail, except those who are facilitating it.
Sorry, but I just had to rant and rave for a moment. Now, back to our regularly scheduled program (but I’ll continue to rant and rave towards the end when I disclose the latest fraudulent transaction).
The average price per square foot of condos listed in the 18 Brickell buildings included in the Brickell Condo Index has dropped to $525.88 from last month’s average price per square foot of $529.05. The weight-adjusted average has also dropped to $530.15 versus last month’s weight-adjusted average price per square foot of $537.67. Both figures are below those that were calculated in July as well.
Average price per square foot of units currently listed on the MLS:
The average price of condos sold over the past six months has dropped to $467.47 per square foot versus last month’s figure of $471.94 per square foot. The weight-adjusted average has also dropped to $486.30 per square foot from last month’s weight-adjusted average of $498.36 per square foot. Much of the decrease is due to the a sizable drop in the averages at The Club at Brickell Bay and Vue at Brickell. Both buildings had fraudulent transactions that fell off the six month average.
The Sail at Brickell had yet another fraudulent transaction this past month. It was conducted by the same broker that conducted the fraudulent transaction at The Sail at Brickell that I spoke of in July. Once again, the broker acted as the listing agent and the selling agent. He must have some luck! He was also able to close the deal the same day that the deal went pending. Imagine that! This guy works miracles. He was able to sell a 2 bedroom/2 bath at The Sail on Brickell for $670,000. Well at least he was able to negotiate the price down $10,000 for his buyer. He has some smooth negotiating skills. He must also have some great persuasion skills because nobody in their right mind would pay $670,000 for a 2 bedroom at The Sail on Brickell.
Average price per square foot of condos sold in the past 6 months:
Solaris at Brickell – 186 SE 12 Ter | 33131 | $457.45
The Club at Brickell Bay – 1200 Brickell Bay Dr | 33131 | $660.39
The Mark on Brickell – 1155 Brickell Bay Dr | 33131 | $501.16
The Palace – 1541 Brickell Ave | 33129 | $363.32
Villa Regina – 1581 Brickell Ave | 33129 | $316.62
Vue at Brickell – 1250 S Miami Ave | 33131 | $464.83
This is the first month that a development has had a price per square foot under $300 for condos sold over the previous six months since I began this index. Atlantis on Brickell broke through this barrier with an average price per square foot of $298.11. This figure for Atlantis on Brickell will likely continue to decline as a bank-owned listing has remained on the market for quite some time and will likely sell for around $200 per square foot.
Below you will find the new statistics that I have included in this month’s Brickell Condo Index. The first number directly to the right of each development name represents the total number of active listings. The second number, in parentheses, is the number of currently listed condos expressed as a percentage of the total number of condos in the development. The third number represents the number of pending sales while the fourth is the number of closed sales within the past month.
Atlantis on Brickell – 13 (13.54%) | 1 | 1
Brickell on the River North– 59 (18.21%) | 4 | 0
Bristol Tower – 19 (12.93%) | 3 | 1
Emerald at Brickell – 34 (23.94%) | 1 | 0
Four Seasons Residences – 18 (6.67%) | 3 | 0
Imperial at Brickell – 15 (9.32%) | 2 | 0
Jade at Brickell Bay – 76 (23.31%) | 6 | 1
Neo Vertika – 78 (17.61%) | 7 | 0
One Miami – 165 (18.42%) | 6 | 2
Sail on Brickell – 64 (42.11%) | 2 | 1
Santa Maria – 10 (5.75%) | 1 | 1
Skyline on Brickell – 54 (15.00%) | 2 | 1
Solaris at Brickell – 21 (15.22%) | 2 | 1
The Club at Brickell Bay – 145 (22.55%) | 11 | 1
The Mark on Brickell – 43 (11.62%) | 0 | 1
The Palace – 25 (9.84%) | 1 | 0
Villa Regina – 20 (9.62%) | 0 | 0
Vue at Brickell – 62 (19.20%) | 1 | 0
Two numbers jumped out at me when reviewing this month’s findings: the 42.11% of available listings at The Sail on Brickell and the 11 pending sales at The Club at Brickell Bay.
I knew that prices were high and unjustified at The Sail on Brickell with mortgage fraud having much to do with it, but I never would have imagined that over 40 percent of the building would be available for sale. That’s incredible! However, a look at the current list prices should make those who have visited this building realize that the prices at The Sail on Brickell are ridiculous. Of the 18 buildings included in the Brickell Condo Index, I would rank The Sail at Brickell at the bottom. There are no views and the common areas and amenities are below Brickell standards. The developer, Renzi Development, recently announced that they plan to go forth with their Beacon at Brickell Village development. I sure hope they have second thoughts. The Sail on Brickell will eventually sell for around $250 per square foot (and that’s being generous). If I were a condo owner who is motivated to sell at The Sail on Brickell then I would be priced at the front of the large pack.
When I saw the 11 pending sales at The Club at Brickell Bay I was quite surprised. At first I thought it was my lack of REM sleep setting in. Once I realized that it wasn’t, I had to investigate further. What I found made this number a complete sham. Of the 11 pending sales, 9 of them have been pending since 2005 and 2006. What the….? It usually takes two months, maybe three months tops, to take a pending sale to the closing table. The other two pending sales have been pending since January and March of 2007. Something just isn’t right. Most likely the sales prices couldn’t be justified. Take 6 months, 12, months, 36 months and the prices still won’t be justified. These transactions should be reclassified as “hopeless” rather than pending. A 1 bedroom/1 bath at The Club at Brickell Bay will be going up for auction tomorrow, September 19, 2007 at 3pm. That will give everyone a good indication as to the fate of prices at The Club at Brickell Bay. You can be sure that I’ll report about it within the next couple of days.
So there you have it, that is the latest Brickell Condo Index. The good news is that there were 11 closed sales within the past month versus a total of eight closed sales the month prior to last. There were a total of nine closed sales the month prior to that.
There are a total of 42 pending sales disregarding the 11 at The Club at Brickell Bay since those have been discredited. As long as half of those transactions actually close, then there should be about 10-11 closed sales next month. I guess we’ll just have to wait and see. I’m praying that we won’t have another fraudulent transaction then. If we do, and you thought I ranted and raved now, just wait until next month.
Preparing for the Platinum Condominium Auction
As many of you already know, the Platinum Condominium auction will be held this Thursday, September 20, 2007 at 7pm. 20 of the developer’s unsold condo units will be auctioned with 8 of them being sold absolute to the highest bidder regardless of price. The auction will be held at the Miami Biscayne Marriott located at 1633 N Bayshore Drive.
Today, I attended the open house at Platinum Condominium to take another look at the building, and specifically the units that will be auctioned. For those of you unaware, the 20 condo units up for auction have been organized into the following three groups. The 8 absolute units are underlined.
Group A
Unit 1602 – 1 bedroom/1.5 bath – 1,042 total square feet – approx. monthly maintenance fee: $357
Unit 1802 – 1 bedroom/1.5 bath – 1,042 total square feet – approx. monthly maintenance fee: $357
Unit 2002 – 1 bedroom/1.5 bath – 1,042 total square feet – approx. monthly maintenance fee: $357
Unit 2102 – 1 bedroom/1.5 bath – 1,042 total square feet – approx. monthly maintenance fee: $357
Unit 1705 – 2 bedroom/2 bath – 1,142 total square feet – approx. monthly maintenance fee: $432
Unit 1905 – 2 bedroom/2 bath – 1,142 total square feet – approx. monthly maintenance fee: $432
Unit 1806 – 1 bedroom/1.5 bath – 988 total square feet – approx. monthly maintenance fee: $357
Unit PH-2206 – 1 bedroom/1.5 bath – 988 total square feet (11-foot ceilings) – approx. monthly maintenance fee: $357
The auction house may or may not start the auction with Group A. They may take a vote to see which group participants in the auction would like to see auctioned first. Once the first group is selected, bidding will begin and the highest bidder will select his/her preferred unit from within that group. If the unit is not an absolute unit then the developer will have an opportunity to decide whether or not he would like accept that bid. If the developer declines the offer, then the bidder can select a different unit from within that group or sit down and select nothing. If the developer accepts the offer, then the unit is scratched from the list and bidding will start again. The process will be repeated until all units within that group have either been auctioned or the bidding fails to reach an acceptable price by the developer for the remaining units.
Group B, in my opinion, has the best units and should be auctioned at the highest prices. Many would think that Group C would be auctioned highest because it has the only 3 bedroom units available. The views from these 3 bedroom units though are horrible. However, Group C has Loft 103 which is my favorite unit in the entire building. It is truly an amazing loft with its 27-foot ceilings. It doesn’t have much of a view but who cares. The auction participants who haven’t toured this unit will likely hold very little value in it because it is only a one bedroom. It’s a great sleeper pick.
Loft 107, in Group A, pales in comparison to Loft 103. It has 17-foot ceilings and the layout is just decent. There’s a reason why it’s an absolute unit. I definitely prefer the 02 line over the 06 line in Group A but Penthouse 2206 was nice because of the additional 2 feet in ceiling height. The 2 bedroom/2 baths in Group A should go highest, followed by the 02 line units and finally the 06 line units. Loft 107 likely will go somewhere in the middle.
There’s definitely a big difference in the 01 line and 07 line condos found in Group B. Not only does the 01 line have much better views but the layout is much better as well. The living room space in the 07 line was lacking to say the least. It was more like one big kitchen/dining room.
Every unit in the building comes with only one parking space. Each additional parking space will cost you $20,000. There is also an option to buy a storage space that is 23 feet x 38 feet for $5,000.
If you intend to bid at the auction, you will need to present a cashier’s check or certified funds in the amount of $10,000 made payable to Pardo & Gainsburg, LLP Trust on the day of the auction. All winning bids will be required to pay the balance of 10% of the total contract price on the day of the auction in the form of a personal or business check. A buyer’s premium of 10% will be added to the final bid price and included in the total contract price. Make sure you take the buyer’s premium into account when bidding. The balance of the purchase price is due at closing on or before Monday, October 22, 2007.
Additional Information
Pet Policy: Two pets allowed, not to weigh in excess of 50 pounds each
Rental Policy: Minimum of 6 months
Maintenance Fee Includes: Building insurance, water, sewer, garbage, 24-hour manned security, basic cable TV and use of the common areas and amenities
Contact me if you’d like me to register you or if you have any questions regarding the auction. I will be attending the auction and look forward to seeing many of you there. Good luck!
