The Platinum Condo Auction…How Low Did They Go?
Categories: As Heard on the Street, Buying Real Estate, Condo Communities, Downtown Brickell, Front Page, In The News, Miami, Real Estate News
hiTonight I attended the auction for the 20 remaining developer units of the Platinum Condominium located at 480 NE 30 St., north of Downtown Miami.
About the crowd...I would guess there were between 300 -400 people there. The media was well represented with reporters and TV crews. CNBC filmed the entire night. Before the auction started the CNBC producer was quizzing the crowd asking if anyone could give a name of a buyer who had either walked away from their deposit on a condo unit or was about to not close. At the start of the auction, she still had no takers. I recognized a developer or two and ,of course, there were more than a few real estate brokers.
The atmosphere was lively. There was a cash bar and a DJ - not quite the caliber of the grand kick off parties back in the day, but still there was quite an upbeat feeling.
The auction… began with the 8 units that were being sold at “absolute” auction… in other words the highest bidder gets a unit regardless of the price. Units were auctioned off in blocks. The bidding was not for any specific unit in the block, but the winning bidder could select from the available units. Here are the results of the absolute units only. The subsequent sales that were not “absolute” were all sold subject to developer approval so their end price could not be verified.
The Floor Plans
Tonight’s Sales
Are these prices a good deal? You be the judge… here is what was available in the MLS just before the auction…
A quick perusal of the Miami-Dade tax records shows that the price per square foot when the buildings started to close in May 2007 was from about $300 a foot to just below $500 a foot. So it does seem to me that tonight’s buyers did get a good deal.
Will this set a new benchmark for condo prices in Downtown Miami? It’s hard to say. Platinum is in a sub-par location as compared to many of the new condo buildings to come. There are not a lot of things to do within easy walking distance. The building is not waterfront, but some of the units do have water views. Like many buildings sold at the height of the market, some of those prices reached an unrealistically high level. Good or bad, buildings all seemed to sell within the same vicinity. Tonight’s sales could be indicative of what the “lesser” building benchmark should be… leaving higher prices for better buildings in better locations.
Thank you for a very informative post, I have not seen any new condos sell in the $200/sq. ft. range for a long time.
Smart developer, perhaps other will follow his lead and auction off their unsold units as well.
The condo vultures are rearing their ugly heads!
Thanks for the great summary of last night’s event. It will be interesting to see how many more of these are announced in the months to come. Based on atmosphere of last night, maybe the condo auction will be the next wave of parties with fancy cocktails, super models, etc….
Whoaaa, what a blog. This blog should be the standard…Impressive…Ok Beth, I have some ideas but may I borrow your editor for a day please…
Terrific information and blog!
I think unit 301 is 2,254 total square feet. At the 352k selling price that means $156/sq ft
Thanks Beth for the information, do you think this will affect the prices of the Met project??
Great Blog!!!! Tks for all the info!!!
Beth, It will be interesting to see how the previous owners respond to last night’s auction.
SBKI - that info was in the prospectus.
Beth, how does this effect the adjacent property owners who are trying to get loans our ability to refinance?
I am guessing that the drinks should have been free!
Very interesting. Thanks for the report.
Thank you for the information. I saw the newscast last night and they were reporting that the auctioned units went for more than 1/2 the sales price. I’m sure this isn’t going to sit well with previous buyers.
Omar - I don’t think the Met is comparable to this building - location differential is huge. In my mind they are really is 2 different markets.
Anita - I am sure the current unit owners aren’t very happy this morning.
Wow, just saw this. Thank you, great info.
Beth,
I thought this was a brilliant marketing idea, these people got to sell a number of units they probably needed to sell and they obtain amazing media exposure.
I think we are going to see other developer’s doing the same…great blog, appreciate your information immensely.
Thanks Beth for the update. Unfortunately or fortunately this is what everyone needs to see to really grasp the reality of this new market we are in right now. I have Sheryl Crows lyrics playing in mind…A change, would do you good, I think a change, would do you good. A Change Would Do You Good.
Let’s hope this is not a new basis for Appraisal Comps! Thanks for the real story. I wouldn’t expect that from CNN.
Great information. I am not ‘happy’ about the auction situation but I do not want to see the media jumping on ‘the number of unsold units in Miami’ next year…yet we know they probably will.
I have been hearing a lot about the auction concept. Since it was a developer close out,it can be argued that the prices won’t really drag down the neighboring buildings, but with no other sales to go by either,it probably will to some extent.
Thanks for the info!Hope you had fun at the auction!
I was curious as to what your take would be on the auction.Great blog! Not a squeeler in the crowd would utter the name of anyone who had walked from a condo deposit or was about to walk from a closing? (Maybe if the reporter had offered a free condo in exchange for that information, she’d have gotten a taker or two.) You didn’t want to holler out “I DO… I KNOW.. I’LL TELL!”?
Beth,
Very good article, it sure is a good example of what is going on out there. It is a good tool to show our sellers…the message would be “do not panic but be cautios”
Thanks
Great post. I think you’ll see more auctions occur in buildings like the Platinum. Those resellers may want to trim a little fat off their list price.
Beth
Best coverage! I’m all in favor of “letting the chips fall where they may.”
Many developers over the years (AQUA, Blue & Green Diamond)have tried to outsmart the market and in the end the pressure of the “real market” always wins out.
Platinum has a an inferior location:
north of P.A.C, not waterfront and the building is nothing to be excited about.
sounds like the vultures are circling - perhaps prematurely. Thanks for the info. Susan
[...] From looking at the numbers, the people who bought the “absolute” units probably got a fair deal. Platinum is in an inferior location (north of the P.A.C., not waterfront), and all the real estate market fundamentals that didn’t matter much during the frenzy (location, supply and demand; little things) will now become more important than ever. [...]
[...] From looking at the numbers, the people who bought the “absolute” units probably got a fair deal. Platinum is in an inferior location (north of the P.A.C., not waterfront), and all the real estate market fundamentals that didn’t matter much during the frenzy (location, supply and demand; little things) will now become more important than ever. [...]
Great job reporting and analyzing this auction. I think this is just the beginning and we will see many more. You are so right in recognizing this location, but any unit for $235 psf will be a good value in the future. I’m hoarding my cash (Tom, I won’t even spend it at the bar!)
Latest article from the Miami Herald via FAR:
Miami condo auction draws low bids
http://www.floridarealtors.org/NewsAndEvents/n4-092507.cfm
The only sold the “absolutes” and cancelled the rest to hold as rentals.
PS - Beth is there any way to link in a remark, or do I have to do as above and paste the link?
Great information and I believe there are more absolute auctions to come soon.