Black Square – Lights Out at Solaire?

Downtown Orlando’s Solaire at the Plaza is great condominium.But like most downtown condos, it’s had its fair share of problems.

Now, after a number of sales and marketing companies have come and gone, each turning down offers from both individuals and bulk investors, several reliable sources suggest that the developers (Wood Partners) have decided to take their chances at auction – and Condo Metropolis has heard that a press release is expected on Friday 8th February, 2008. The Orlando Sentinel is expected to pick up on the story tomorrow. Bidding will start at about $170k. Details to follow.

Developers “In the Dark”
Black Square - Lights Out at Solaire!To add insult to injury, according to Central Florida News 13, the Orlando Utilities Commission (O.U.C.) said it is about to turn out the lights at the Plaza because it is delinquent on its bills – to the tune of over $250,000. OUC is reported to have threatened the owners of The Plaza, saying that if someone doesn’t pay the thousands of dollars owed, it is going to turn off the electricity – soon.

OUC said tenants in the building would keep power, but common areas such as hallways and the lobby would be in the dark. Emails from concerned residents are now flying up and down Solaire’s hallways.

So, um, will the last person out please remember to turn out the lights — or pay the bill.

For more on Solaire at the Plaza, visit our Solaire Condos page.

5 Comments

  1. I can’t understand why developers would want to go to auction knowing as we all do that they will get 50c on the $$. Why would they turn down a sure fire bulk purchase at 55-60c on the dollar and take a chance of selling a few at a lower price and potentially still being stuck with the rest. I’ve seen this happen before – it’s a loose loose situation. Or am I missing something here??
    Confused of Orlando.

  2. So will this be an ‘absolute’ auction? I wonder how many they are committed to selling? Sounds crazy to me.

  3. JR, I don’t think you’re missing anything. Auctions are complex psychological situations and sometimes excited buyers can drive up the price. Having said that, you are essentially right, and if the last Orlando auction is anything to go by (Wekiva Bend and Village Town Homes) then buyers expecting a great deal will withdraw from bidding as soon as it’s obvious that’s not going to happen. It’s certainly a risky strategy for a developer because they can still wind up with inventory at the end of the auction having sold only a few – and be right back where they started. And once they’ve been to auction no one’s going to want to pay much for whatever is left. Wekiva and Village townhomes are still trying to sell off what was left after the last auction 6 months later. Having said that, this is not so much an ‘auction’ as a marketing effort. There are no ‘absolute’ sales and the starting prices will ensure that the developers are not loosing money on this one. The buyers will NOT be investors but those end users who wanted to live at Solaire but couldn’t afford to. At these prices they might just jump in – and that’s exactly what the developers are hoping for. Of course those that purchased a year or two ago and paid $100k more will not be happy – but that’s real estate for you.

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