94% Off In Miami
July 23, 2009
A South Florida private equity group purchased 51 new, oceanfront condo-hotel units in the luxury One Bal Harbour complex at $63 per square foot, a discount of 94 percent off of the $1,100 per square foot average recorded sales price, according to a new report from Condo Vultures® LLC.
Elcom Condominium LLC with Jorge E. Arevalo and Thomas D. Sullivan in South Miami paid $2.6 million for 41,047 square feet of saleable space in the 124-unit Regent Hotel tower located on the west side of the 26-story, trophy complex in exclusive Bal Harbour.
Bankrupt residential development company WCI Communities, Inc., based in Bonita Springs, Fla., was the seller of the condo-hotel with 106,051 saleable square feet. WCI’s chief restructuring officer Jonathan Pertchik signed the deed.
“Nearly 60 percent of the One Bal Harbour condo-hotel project closed at an average price of $1 million per unit before Elcom Condominium stole the remaining 40 percent of this high-end project for $51,000 per unit,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancyCondo Vultures®. “Condo-hotels are not for everyone but at $63 per square foot one has to think there are buyers for this quality of product at that price.”
How would you like to be the guy that bought one of these at $1,000+ per square foot?
[via CondoVultures]
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Um…can I have one, just ONE, for $63/sf???
I can’t believe CNBC reported this nonsense without doing any research. If they had, they would have found that the buyer paid an additional $12 million to control the common areas, as anyone would do if making a bulk purchase of this size. This is a tax allocation and not a real price for the condo-hotel units. Total price $14.6 million for 41,047 saleable sf.
Thank you Mr. Hart, I was going to comment on this article believing that this was one of those “Thank God there are still great deals out there” scenarios. I run an investment website and most deals are not looking that attractive. I konw there have to be some good ones out there, but it is very tough finding them.
The market is rough and getting rougher see Wednesday, July 29, 2009
LoopNet Poll: Timing of Commercial Real Estate Recovery Pushed Back; 2/3 Expect Further Price Drops of >10% http://blog.loopnet.com/
Without clear knowledge of the bottom there is no great way to price assets and all the articles I am reading on purchases increasing mean nothing as I believe there is a bit of a pre bottom frenzy that can turn out to be a bust for many.
Respectfully,
JW Najarian
CREPIG Founder