Avanti at The Villages of Normandy Isle – Another Developer Closeout Auction
October 21, 2007 by Lucas Lechuga
Avanti at The Villages of Normandy Isle is a multi-story townhouse community located at 155-193 North Shore Drive in the neighborhood of Normandy Isle in Miami Beach. I've visited several condos at Avanti in the past and was very impressed. The layouts were great and most had a large rooftop terrace that would be an ideal place for a Jacuzzi hot tub.
Apparently, the developer still has six unsold units and has decided to auction them. Two of them will be sold "absolute" to the highest bidder. Five of the six units are 3 bedroom/3.5 bath units with 3,108-3,440 square feet. The sixth unit is a 2 bedroom/2.5 with 2,790 square feet. Avanti was completed at the end of 2005. Has the developer been holding onto these this whole time?
At present time, there are ten 3 bedroom/3.5 bath units that are listed in the MLS. They range in price from $700,000 to $1,155,000.
A cashier's check in the amount of $10,000 is required to bid on the day of the auction. Any winning bids will be required to provide the balance of 10 percent of the total contract price in the form of a personal check. There will be a 10 percent buyer's premium for units sold at this auction. Closings shall occur on or before 45 days following the auction. All units are sold "as-is" and without any contingencies.
The auction will be held Saturday, November 3, 2007 at 12pm at Avanti. Contact me if you have an interest in bidding at this auction and would like to view the units.
i agree–10% buyer’s premium is ridiculous—today most are 5%.
if they were really serious about unloading, the developer would have used a down and dirty auction company to move it.
John C I believe an absolute unit is one that is sold at auction regardless of price.
Developers will typically hold a reserve price for a majority of the auctioned units (i.e. unit cannot sell below a set certain price) and sell a handful ‘absolute’ so as to generate interest in the auction.
Any news on what the units went for and how many finally sold? Absolute sales and otherwise. Thanks for any updates. The website is great by the way.
Nope. I didn’t attend the auction. I received very little interest. I wouldn’t be surprised if the two absolute units went really low.
What is an “absolute” unit ? No idea on what others sold for ? Any idea on good price ? These are big square footage units in up and coming area close to water and beach.
10% buyers premium seems a bit high, don’t you think?
I agree. 10% is a bit too much given the current situation. Nice units but location isn’t anything to bank on appreciation.
These units are pretty cool looking. I think you’ll either face the waterway or the park and golf course. It seems the City is making a lot of improvements in Normandy and its near North Beach which has a lot of new developments and city improvements.
This is the first time I’ve stumbled onto your website, and it’s excellent.
I drove by the developments in Normandy/ North Bay Village and wondered who in their right mind would pay premium pricing to be in a mediocre part of the city, so close to the ‘danger zone’ on 79th and Biscayne where all the hookers/drug dealers/etc come out as soon as the sun goes down.
It’s also a bit misleading to say that you live on the golf course out there, since the public c0urse has been closed since late 2004! Sure, it’s *supposed* to reopen in 2009 but nothing in Miami ever happens on time, certainly not when the gubmint is involved.
Lucas,
What is the best way of seeing upcoming auctions in Miami? I’m looking for both residential and commercial properties. Thanks.
Juan,
I usually post any auctions that I know about on this site.
I went to the auction. It was very poorly attended. The first unit (the biggest) went for $420K + the buyers premium, and the second unit (the second biggest) went for $385K + the buyers premium.
Then, in a bizarre twist, the auctioneers stated that they had just made a side deal with someone else for 2 more units, and that the remaining 2 of 6 were being withdrawn from the auction by the developer. You call that an “auction”?!
Although the auctioneers touted the auction (and the development as a whole) as a great success, it was clearly not. Looks like the developer, stunned at the scarcity of bids and low prices (unit that sold for $462K (with buyers premium) total was previously on the market for $890K), panicked and ended the auction.
The development is really nice, and the area is really improving. Its walking distance to the beach, the golf course is being renovated, and Canyon Ranch is opening nearby. But, the same developer is building “Privata” right next door, which will be much nicer, and have elevators in each unit. When those are completed, no one will want Avanti, as they are smaller and don’t have elevators.
And, if you were smart, you’d buy a single family house in Normandy Shores gated neighborhood (right next to Avanti). You can get a 3 bedroom house with a swimming pool, facing the golf course, for the price of one of those townhouses. Much better deal; no maintenance fees, more space, and you own land on the Beach.
So, to summarize, looks like they sold only the 2 aboslute units. The other 2 supposedly sold were likely just yanked by the bank or developer.
Wait for Privata. That’ll go on the block as well in a year or two, and they’ll be much nicer.
Thanks for info. I toured condos – they look great.
This is unbelievable to me.The scams continue in the real estate market. No one will want to purchase a condo when there is such a lack of trust. The developers are continuing to make a black eye even worse for the condo market. Investors must stick with higher quality properties in order to avoid further disasters.
Don,
It really did not work the way, that you think it did. They took more units out of the market because a buyer panicked that he may loose them and went to tell the developer that he will make a higher offer than the last two bids. He bought two units for family members.
The same day later on, another unit went under contract with a private offer.
All the information is accurate and will be in public records, as soon as this units closed on December.
And, the reason he did not keep going, it’s because he got his goal for the day.
Privata is very nice but , also they are asking 865,000 for a 2/2 on the street side and its waterfront is not as wide as Avanti .
Just check the public record, if you would like to verify what I said is correct.
Also, Privata has a different developer.
By the way, the purpose of an Auction is to sale. That was not an scam, he got a better offer from the people that attend the auction.
The developer was trying to sell, so he got a good offer and took it.
Where is the scam?? Did they steal money from you?
Was the Seller the Berman/MAMC company? I’ve read in other articles that they bought the land initially…now they’re bankrupt.
MELANIE IS ”ON THE MONEY”….THE AUCTION WAS A SUCCESS AND THE AUCTION COMPANY WAS EXTREMELY PROFESSIONAL IN HANDLING ALL ASPECTS OF THE AUCTION…….MOST IMPORTANTLY THE ”SELLERS” ACHIEVED THEIR ”GOAL”
Melanie and John,
Thank you for your comments.
In view of your assertions that the developer did not end the auction due to the scarcity of bids, and in view of the details you provided, I would assume that you are somehow connected to the developer. Are you employed by, or in a business relationship with, the developer? Or, are you an agent involved in the sales of these units?
To give the county time to record these sales, I have waited until today, January 31, 2008, to check the tax records. As of today, only one sale has been officially recorded. Is this correct? I would appreciate if you could inform me of the details if I am incorrect in my understanding.
The lack of recorded sales at this point tends to lead one to believe that, contrary to the developers assertions, all of the 6 units were not sold at the auction. Sure, I know that deals fall through. There are many reasons for it. But, at this point only one sale has been recorded . And, I believe that at least one of the units supposedly auctioned is back on sale by the developer. Am I incorrect? If not, this is a bad sign for this development.
Furthermore, many of the units have never been sold. That can clearly be seen by checking the tax records. The developer has resorted to renting out the units….I know, I have spoken to a tenant. And the rents are far lower ($2500/month) than you would pay for mortgage, property tax and insurance to buy one. Like 1/2 to 1/3. So, the real question becomes “why buy, just rent?”. Its a much better deal.
I feel very sorry for the buyers of these units in 2005 and 2006. You can see in the tax records what they paid, and then see what they went for at auction. Shocking drop!
With regards to the auction being a scam, I was not referring to me personally losing money. I was referring to the developers misleading advertisements. I should have phrased it differently..I apologize. The developer did lead attendees to believe that there would truly be an auction for 6 units, with 2 at absolute prices. There was NOT an auction of 6 units. An auction involves an opportunity for the public or a designated group to place bids. This happened only for 2 units.
Side deals, which is what you alleged to have taken place for the remaining 4 units, are not defined as an auction. Anyone who attended the previous auction is VERY unlikely to bother to attend another auction for the remaining unsold units or Privata, in light of what happened. Many attendees personally told me that.
I surely understand that the point of an auction is for the developer to make money. However, I still firmly believe that the auction was not a success. I hope, for the markets sake, the tax records prove me wrong in the coming months. We all need it here.
With regards to Privata, yes, it is more expensive. But, recently, I see that the developer has been dropping the prices. I think the market downturn will demand a greater price drop in 2008 to move the rest of the units though.
A bad sign recently…the construction workers have been removing the scaffolding, and have not been working for several weeks. I hope the construction loans have not been cancelled. At this stage of construction, it is of little value, and will be very hard to sell to another developer.
I look forward to your replies.
An update….as of May 19, 2008, Privata Miami Beach construction has been stopped for months. The construction company pulled out several months ago, taking their trailer and all equipment with them, and there are no signs of anyone picking up this project. Unsurprisingly, the units continue to be offered for sale by the developer, Akron Development Corp., and they have stated to the community reps here that everything is going well. Clearly, that is not the case.
I am dissappointed to not receive any response from Melanie and John Bear. If I am incorrect in my assertions in the above entry, would they have not responded promptly to refute same? Merely stating someone is “on the money” is not what people are looking for in this market.
I have recently spoken with an owner in Avanti who bought preconstruction, and now lives there with her family. They are VERY upset about the auction, and the present circumstances. Due to the auction, they cannot sell for anywhere near their preconstruction purchase prices, and are basically stuck.
I sincerely hope that the Avanti developer does not further undercut any of the previous purchasers, and that Privata construction resumes. The entire block is a mess.
anyone driven by privata latley any know whats going on???
Hi Don,
Great blog! Do you have any recent updates about Avanti and Privata townhomes?