Struggling Miami ‘Bulk Condo Buyer’ Opts to Auction Remaining Units at Discount Prices
According to a new report from Condo Vultures, a Miami bulk buyer struggling to resell individual condos is taking the surprising step of auctioning off most of its remaining units at an asking price of $11 per square foot less than the original acquisition price.
VH Miami Investments LLC with Vicky Haw as principal plans to auction off 37 units out of the remaining 42-unit portfolio at a price of $58 per square foot in the Altos de Miami condominium in Miami’s Little Havana neighborhood, according to report based on the auction collateral and government records.
Some 15 months earlier in March 2009, VH Miami Investments purchased 56 units for $4 million, or $69 per square foot, in the troubled 16-story condo tower. At the time of the bulk deal, 69 units had sold in Altos de Miami at an average of $181 per square foot, according to the report based on Miami-Dade County records.
“This is a first for the South Florida bulk market during this latest condo crash,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based Condo Vultures, LLC. “To date, none of the other nearly 50 South Florida bulk buyers that have purchased blocks of new condos in South Florida at deep discounts have taken such a unique exit strategy. Most other bulk buyers are opting to sell units slowly and lease out the remainder.