Liquidation Sale in the Catalina Foothills – results.
Public Auction of The Villas at Sabino Canyon – Luxury Condos in the Catalina Foothills, put up for liquidation sale by the developer, was held in the Doubletree hotel in Tucson, AZ on May 10, 2008. I didn’t count the people who showed up, but it was less than a few hundred.
Out of 40 Condos presented, first two were bid up the most – both to $160,000. This however was the highest point of the auction. Steadily, the activity was drying up, with a few investors picking up handful of units that nobody else really wanted. The price ranged in between $122,500 and $145,000, though it is hard to pinpoint what was affecting the difference. Out of the five 3 BR Units (1,209 square feet each), the only upgraded one was sold for $160,000 (one of the above mentioned first two), the rest end up with the following prices: $140,000, $140,000, $135,000, $130,000 in the auction’s order.
During the auction, nine of the units came back (one of them twice), probably due to bidders’ inability to qualify or lack of the necessary paperwork / money. Overall, that cost the developer extra $52,500, as the consequent bids were lower in eight instances. For example, 2 BR/2 BA Unit 9-105 (1,017 square feet), described as “upgraded, private location, corner unit, fireplace” (auction sequence #22) was at first sold for $140,000. Yet, after it was re-auctioned, the final bid was $125,000.
Most of the vacant units were already completely renovated and upgraded by the developer and included granite counter tops, tiles in the kitchen, bathrooms and living area, new carpet in the bedrooms, new stainless steel appliances, bathtubs, sinks, etc… Two models even included flat screen plasma TV attached to the wall.
Overall, the auction was an amazing experience, worth even just to hear 120-125-120-125-125-125-120-125-120-125… with the speed of 120 words per minute or faster. It was though surprising for me to see starting bids of $89,000-$109,000 going up to $120,000-$125,000 almost immediately and then abruptly stop right there. Why wouldn’t the bidders get up there slowly? It might have saved them “a few bucks” at least in a few cases. However, looking at the face of the person opening the auction, one can strongly suspect that results didn’t meet Seller’s / Auctioneers’ expectations. Only time will show if this auction was a great buy for the investors or a timely escape for the Seller.
One thing is obvious. Those who were buying Condos to live in it have definitely won. They paid half of what was paid by their future neighbors just a few months prior. The location is definitely superior, considering proximity to Sabino Canyon, Ventana Golf and Racquet Club, Canyon Ranch Resort, etc… Moreover, those upgraded luxury condos are in the desirable by many School District 16, yet the new auction prices were still slightly better than many recently sold older non-upgraded condos in the TUSD school district. It was also much easier and safer process than buying short sales and foreclosures.
Good luck to those who won. Enjoy your new home!
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The title company informed me that 31 of the 40 units were sold. I believe the nine (9) units referred to as coming across the auction block twice were the ones the auctioneer closed the bidding on the first time and did not come close to the reserve the second time and were not sold.
My bid was accepted subject to seller approval. The seller had until Friday of the following week to decide whether or not to accept the bid. At 4:15pm (45 minutes before deadline) title company informed me that seller accepted all bids that were initially hammered as sold subject to seller approval.
I paid $132,500 plus 5% commission for an upgraded 2 bedroom near the pool.
Duane,
Thanks for sharing inside information. I was also told that auctioneer – Real Estate Disposition Corporation or REDC – was accepting backup offers (bids?) after the auction, in case original bidders wouldn’t close on the transaction. As of a few days ago, it was still possible to participate by coming to the REDC office at the Villas at Sabino Canyon, or even better by calling me.
$132,500 is a very good price, even considering extra 5%. Congratulations!
Anjelina.
It will be interesting to see how these kind of “auctions” fair over time. I assume it something of a phase, however it does serve the purpose of liquidating property quickly, if that is the ultimate goal.
If nothing else, it’s a facinating place to people watch.
JZetter