Solaire Auction Deemed a Success

solaire condoThe buyers might have liked them a little cheaper. The developers might have liked a little more money. But in the end, nothing spectacular happened at the Solaire condo auction. And an hour and a half after it began, it was all over. About 150 folk showed up in the end – and although 42 condos were originally offered, only about 30 bidders were eventually successful.

The Orlando Sentinel reports that the low price paid and the way the property was sold “may cause sleepless nights for developers and Realtors.” I’m not sure that’s true. I think the developers managed to move some much needed inventory and some buyers got a decent price as a result. But there was no blood bath. Having said that, those buyers who paid significantly more two years ago are unlikely to be thrilled with the result. But whoever said real estate was an investment no-brainer?

Two bedrooms originally priced from $375,000 to $450,000 went for $289,000 to $365,000. One bedrooms originally priced from $296,000 to $255,000 sold for $204,000 to $229,000. (That’s $250 per sf on average at the auction on units that were retailing for $300-340 per sf.)

I asked colleague and downtown Realtor Darryl Hunt (“Downtown Darryl”) what he made of the auction. “This shows there is a demand for Downtown Orlando Condos at today’s market prices and people are optimistic about its future,” he said. Or, as Steve (OrlandoCondo411) put it: “The interest of living a metro-urban lifestyle is there but the pockets of those who desire to are about as deep as a mid-summer afternoon rain shower puddle in Florida.”

So what now? When those sales close and become ‘comps’ they will of course have some some impact on downtown prices over the next few months – and the main losers are likely to be other downtown condos like 55 West and The Vue, who will perhaps seem even more overpriced than they do today.

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

Next up: Tradewinds Auction in MetroWest

5 Comments

  1. Marcus – I have a feeling that out of the 30 units sold, only about half of them will actually be solidified as purchases….as in many transactions in real estate, there are still lenders, underwriters, and appraisers that must first be satisfied before all else. Do you think the auction was worth the money in media buys(radio, newspaper, print ads, adwords, internet ads…etc) the developer spent to market this auction?

    http://www.orlandocondo411.com

  2. Nice analysis Steve. I do think it’s possible that most will close though, simply because (and perhaps only because) each of the buyers is an “end-user”, was financially qualified before hand, and knows exactly what they’re getting into. These are all folk that always wanted to live at that building but just couldn’t (or didn’t want to) afford the cost. And while I agree that there is a shortage of young yuppies with high income in Orlando (certainly not enough to fill all those downtown condos) I do think that there are at least thirty. Was it value for money for the developer? Who knows – but they did sell over $8MM in real estate in under 90 mins! And that might be enough to keep their lenders happy and off their backs for a few more months…

  3. Wow, thats a pretty picture, who wouldn’t want to buy a condo in Solaire? Cheap prices as well.

  4. I am happy to see the success of the solaire auction. I live down the road at the Vue. So we were all watching to see what was going to happen.
    I still stand by my statement, that Gen Y will save the Downtown Orlando Condo market. They really want this lifestyle. Their education and tech acumen will give them the financial resources needed to afford to live downtown. If you have not been to Wall St. lately, it is packed with 20 somethings and I cannot see them moving to the Burbs.(EVER) Please tell me if you agree or not?
    I just hope the developers of the Towers understand the current market and adjust their goals. People just need the “perception” of value.

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