Hudson & Marshall Auction Results
October 21, 2007 by Lucas Lechuga
- Cite on the Bay - Unit #110 - 3 bedroom/2 bath - 1,475 SF - $300,000
- Four Ambassadors - Unit #344 - 1 bedroom/1.5 bath - 940 SF - $169,500
- Loft Downtown - Unit #204 - 1 bedroom/1 bath - 784 SF - $128,500
- The Club at Brickell Bay - Unit #1823 - 2 bedroom/2 bath - 1,105 SF - $392,500
- Vue at Brickell - Unit #1215 - 2 bedroom/2 bath - 1,116 SF - $340,000
- Vue at Brickell - Unit #2307 - 1 bedroom/1.5 bath - 814 SF - $222,000
There were a large amount of people in attendance at the Hudson & Marshall auction on Saturday. There also seemed to be a higher percentage of active bidders in the crowd than I have seen at past auctions. Regardless, the first 20-30 properties that were auctioned all failed to crack the $100,000 mark. A condo in Homestead was auctioned for $56,000, which was the lowest that I saw a property go. This auction had a 5 percent buyer's premium.
Slowly, throughout the rest of the day, properties began to garner higher and higher prices. With the exception of the 3 bedroom at Cite on the Bay and the one bedroom at Vue at Brickell, I was expecting the condos to go for less. I think the three bedroom at Cite on the Bay for $300,000 was the only great deal of the six condos above. The one bedroom at Vue at Brickell for $222,000 was a good deal but given the high number of short-sales and foreclosures in the building I think it went for the right amount.
I was shocked that the two bedrooms at the Vue at Brickell and The Club at Brickell Bay went for so much. I'm not sure about the unit at The Club at Brickell Bay, but I know that the one at Vue at Brickell needed some work. It had mold in the unit and the carpets needed to be replaced. In my opinion, the highest bidder of each of these units paid too much. That's just my opinion though.
So are these for sure sold absolute prices or “subject to approval” ?
They were sold subject to the approval of the bank.
200 $/sqfoot does look like a great price for cite
What s up with Onyx on the bay is it built yet?
Onyx on the Bay began closings about 3 months ago. It looks like they are having problems in closing a large amount of their units.
Why is that?
As of last week, they have had only 40 recorded closings out of 119 total units. Closings began July 31, 2007. I think there have been a lot of walk-aways.
80 people walwed away fron a 20% deposit that s weird no?
Is it possible that Miami developers lied about their Closed out Sales on their building…That was their main selling point Can they be sued on that basis… After all when you trade a stock the stock exchange rules prevent market makers to create false liquidity which entice small buyers into trading..The core problem of Miami market is there …Safeguards should be applied on the same basis as stocks…Regulators should check that the developer doesn’t lie …I saw many people telling me they bought on towers that sold out in 3 days…I think They lied to the buyers to entice them… Read more »
That is the main loophole in their “contract” not the time they took to build the tower
Add to that their dodgy relations with the brokers and the very high commissions that push people to do crazy things…
In every market it is the same thing every time there is something new it happens until regulators start punishing the people responsible…YOU KNOW WHY CAUSE IF THEY DONT THEY GO ON DOING IT>>>>
THAT S HUMAN NATURE
It was probably common for the sales offices in 2004/2005 to create a sense of urgency with statements like “95% of building is already sold”, or “only 5 units remaining”. These may be misrepresentations; of course if they lied to lenders to secure the financing that’s a little more serious. I think lenders required a certain percentage of pre-sales to extend financing. Careful lenders would probably want to review all sales contracts and may even confirm a sampling to make sure there not fake agreements.
But back to the auction. The Cite at $300K is a very good price. I was there at a friends condo last weekend. The Park is a great public space, and its sure to improve along with the area once Paramount Bay, Quantum and the other developments nearby are finished. As an aside, and an appraisal will not capture this, but the place seemed loaded see beautiful, friendly women. I wondered if a modeling agency purchased a block of units. Lucas, If a prospective condo buyer enjoys relaxing and people watching in the lobby or poolside, which condos would you… Read more »
The area will become beautiful…All I am saying is that they misrepresented the actual demand for those numbers ..brokers helped them and lenders helped them too….You can always ask a fund or even say the developper himself to hold a big chunk of the units in order to get the financing going…Those ” special vehicles” tht create fake demand are the core problem in every speculative markets like IPO issue Warrants issue New Homes….New products that need to be launched need to create volume and this volume usually starts with real demand but it is them overinflated by the issuer… Read more »
Perez,
If you’re talking about Miami then I would have to go with Jade. South Beach has a ton of buildings.
Laurent: I do remember seeing huge lines before dawn just to buy an unit. Maybe the developers stretched a little the % of units sold. But remember, all those people waiting in line wanted to buy a unit just to flip it. So they are the same that the hedge fund that got a big chunk of units (maybe the later got a better deal though). I also doubt that 80 person walked away of the deposit, more likely they are taking as long as they can to decide. And maybe even the developer is extending the closing date, just… Read more »
I just found out that the bid for the unit at Loft Downtown was accepted. The high bids for the 1 bedroom at Vue at Brickell and the 3 bedroom at Cite did not go through. I’m not sure about the rest of the buildings.
Hi,
That makes it @ 164 USD per SF.
Lucas:
Do you know if it’s possible to create an hypothetical projection of prices of 2001/2 (when the boom started) assumming a 6% “normal appreciation”?
Let’s say from one of the building already in place in 2001 get a couple of sales and see the price by SF back then and then add a 6% annual appreciation.
Ignacio, Mathematically speaking, using a 6% annual appreciation rate will produce roughly a 50% increase by the end of 2008 compared to the average price per square foot for 2001. Just find out what the building you are interested in was selling for in 2001 and multiply it by 1.5 to find out what it should be selling for by the end of 2008 given a 6% appreciation rate. For example, in 2001 The Mark on Brickell was selling for an average of $200 per square foot. Using your 6% annual appreciation would put it at $284 per square foot… Read more »
When the banks reject the bids for Vue and Cite, one assumes they rejected it because they expect to find a buyer who will pay more. But we’re in the midst of a major crash, Cite is still in a crummy area next to Overtown and I’ve heard that close to half the units at Vue at Brickell are going into foreclosure. Makes you wonder if the banks still think they’ve got some tricks up their sleeve or if the underwriters are still too nervous to show that they screwed up the first time around. At least Countrywide realizes where… Read more »
Oh one more thing – the deal at Four Ambassadors
(Unit #344 – 1 bedroom/1.5 bath – 940 SF – $169,500) is fantastic! That’s 1997 pricing!
I never said that the banks rejected the offers. The highest bidder for the one bedroom at Vue at Brickell never showed up to the closing table on the day of the auction. I guess he got buyer’s remorse and decided to walk.
The bank that owns the 3 bedroom at Cite sent a counteroffer to the highest bidder which gave him an opportunity to walk as well. He did so.
Lucas how can the buyer for the 1 br at Vue not show up to the closing table? Didn’t he have to be registered at the auction and put down a non-refundable deposit? Or did he just walk away from that?
Bidders weren’t required to put down a deposit when registering.
They are trying again to sell the Cite unit. The 3/2 with 1475sf is again being auctioned. It will be interesting to see what the highest bid will be. Last time you reported $300,000 was offered and rejected. I’m guessing they will be lucky to receive a bid of $275,000.
Your sales info has it listed for $410,000.
They should have accepted the $300,000 in October.
Lucas,
they are trying to auction this Cite unit again.
2000 N. Bayshore Dr. #110 is a 3/2 with 1475 sf.
They previously turned down $300,000 back in October. They’ve probably spent ~$7,000 in maintenance fees since then, paid the tax bill and prices have gone downhill.
Info is at http://www.hudsonandmarshall.com
Perez,
Anyone touching these units for anything less than $150 per square foot will be as foolish as the bank turning down $203 per square foot back in October.
We’ll see liquidation prices by October 1st, 2008. You heard it here first.
Curious if all of these comments were with you the bidders at a Hudson and Marshall Auction or not?
What was your final opinion of Hudson and Marshall?
MAXX
Corrected our email address. Sorry.
MAXX